On the 23rd of July 2024, the Climate Change Act was assented by the President. This long-awaited Act incorporates the provisions of the Paris Agreement, and specifically aims at developing an effective response to climate change.
The Act sets several new concepts that will be affecting various industries in South Africa. In particular, the process of carbon budgets is introduced – under this provision companies will be allocated a certain amount of Green House Gas that they may emit. In essence, where carbon budgets are exceeded, higher carbon taxes will be imposed on the offending company.
In addition, provinces and municipalities have more responsibilities and duties under this Act, such as conducting climate risk assessments and developing an understanding of extreme climate events (like the flooding occurring around the country this year). The Minister of Forestry, Fisheries and the Environment is expected within the next 2 years to develop and publish a national adaptation strategy and require every sector to develop their own. Further, this Act introduces the Presidential Climate Commission as an organ of state, which provides political and financial weight to this body.
These and other provisions are set to change and challenge the current legal landscape, if effectively implemented.
To view the new Climate Change Act please click here: https://cer.org.za/wp-content/uploads/2024/07/Climate-Change-Act-22-of-2024.pdf
Should you have any queries or questions, please do not hesitate to contact us.