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Regulators

South Africa enacts landmark climate change law with emissions caps

South African President Cyril Ramaphosa has enacted a comprehensive climate change law that sets emissions caps for large polluters and mandates that every town and city publish an adaptation plan. The Climate Change Bill is designed to help South Africa meet its emissions reduction commitments under the Paris climate agreement, according to a statement from the presidency on Tuesday.

South Africa, the world’s most carbon-intensive major economy and among the top 15 greenhouse gas emitters, is at risk of missing these targets due to its heavy reliance on coal for electricity. “This is very significant in that it’s the first time that our climate change response is directly brought into domestic law,” said Brandon Abdinor, a lawyer at the Centre for Environmental Rights. “A lot of work needs to be done, but this act puts the basic architecture in place for that to happen.”

The presidency did not specify when Ramaphosa signed the law, which requires every province and municipality to assess climate change risks and develop a response plan. Emissions targets will be established for high-emitting sectors like agriculture, transport, and industry, with each relevant minister responsible for implementing measures to achieve them. The environment minister will also allocate carbon budgets to large greenhouse gas-emitting companies, setting emission limits over a specified period.

While the law does not make exceeding these limits an offense, companies that do are likely to face higher carbon taxes. “With mandatory carbon budgets now in place, we expect to see significant emissions reductions from large companies,” said Harald Winkler, a climate policy expert at the University of Cape Town, on X. “Transparency in annual reporting will be key,” he added.

This bill indicates that South Africa’s new government may take a more aggressive stance on climate change and renewable energy than previous administrations. Although the new energy minister has promised to accelerate the transition to renewables, specific plans have yet to be revealed, and funding strategies for the new bill remain unclear. Western donors have offered billions of dollars in loans to support the transition, but South African officials assert that this funding is insufficient to meet the country’s needs.