Climate Change Act 22 of 2024

Climate Change Act 22 of 2024: south africa's framework allocating five-year carbon budgets to large emitters, requiring mitigation plans, annual ghg inventories and verified progress reporting.

Jurisdiction
Status
active
Category
climate
First deadline
First five-year carbon budgets allocated in 2025; covered entities must submit mitigation plans within 12 months
Who must comply
Applies to enterprises issued a carbon budget, primarily large emitters in sectors such as energy, mining, heavy industry and manufacturing, transport, and agriculture. Coverage is based on greenhouse gas emissions thresholds set by future regulations.
Penalties
Deliberate breaches are criminal offences carrying fines up to R 5 million or imprisonment up to 10 years. Administrative per-ton penalties apply for emissions exceeding an allocated carbon budget, and environmental authorizations or licenses may be suspended.

What it is

The Climate Change Act 22 of 2024 is South Africa's foundational climate law, establishing a national framework to reduce greenhouse gas emissions and build climate resilience.

Its central mechanism allocates five-year carbon budgets to large emitters, who must prepare mitigation plans, maintain annual GHG inventories, and report verified progress against their allocated budgets.

Who must comply

The Act applies to enterprises issued a carbon budget, primarily large emitters in energy, mining, heavy industry and manufacturing, transport, and agriculture. Which entities are covered is determined by GHG emissions thresholds established in supporting regulations.

What you must disclose

Covered entities must produce an annual board-approved GHG inventory (Scopes 1 and 2), a mitigation plan aligned to their allocated carbon budget, and an annual progress report submitted via the national electronic platform. Reported data must be independently verified under ISO 14064 or an equivalent standard.

Timeline

Signed into law on July 23, 2024 (Act 22 of 2024) and effective from March 17, 2025 by presidential proclamation.

In 2025, the first round of five-year carbon budgets is allocated and entities must submit mitigation plans within 12 months. From 2026 onward, entities submit annual GHG inventories and progress reports, with budgets reviewed every five years through at least 2040.

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