# Climate Change Act 22 of 2024

This policy applies to business that meet the following criteria.

#### Region

- South Africa

#### Industries

- Agriculture, Forestry, and Fishing
- Agribusiness
- Energy and Utilities
- Manufacturing
- Mining and Resources
- Transportation and Logistics

#### Revenue

- N/A

#### Assets

- N/A

#### Size

- N/A

#### Status

- Public
- Private

#### Required

- Yes

##### Wondering if South Africa’s Climate Change Act impacts your operations?

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### Overview of the Climate Change Act

**Introduced:** July 23, 2024  
**Effective from:** March 17, 2025 (Presidential proclamation)  
**Last modified:** N/A  
**Region(s):** South Africa

* * *

### About the Climate Change Act

The [Climate Change Act 22 of 2024](https://www.gov.za/documents/acts/climate-change-act-22-2024-english-tshivenda-23-jul-2024) creates a legally binding, national framework for meeting South Africa’s emissions trajectory targets.

Under the law, the Minister of Forestry, Fisheries and the Environment can issue [Sector Emission Targets (SETs)](https://www.epa.gov/climateleadership/target-setting) and company-specific carbon budgets, enforceable through strict monitoring, reporting, and [verification (MRV) requirements](https://www.worldbank.org/en/news/feature/2022/07/27/what-you-need-to-know-about-the-measurement-reporting-and-verification-mrv-of-carbon-credits).

Regulated entities must submit annual GHG inventories, develop and execute mitigation plans, and report progress in a digital format—backed by mandatory third-party assurance.

Noncompliance carries steep penalties, including administrative fines and criminal prosecution for repeat or intentional breaches.

* * *

#### Criteria for compliance

Enterprises issued a carbon budget—primarily large emitters in sectors such as:

- Energy
- Mining
- Heavy industry & manufacturing
- Transport
- Agriculture

Entities are selected based on GHG emissions thresholds, which will be set by future regulations.

Companies not allocated a carbon budget must still comply with [South Africa’s National GHG Reporting Regulations](https://www.dffe.gov.za/sites/default/files/legislations/nemaqa_greenhousegasreporting_regulationsamendment_g43712rg11174gon994.pdf) if they meet sectoral thresholds.

* * *

#### Compliance timelines

##### 2025

First round of five-year carbon budgets allocated; entities must submit mitigation plans within 12 months.

##### 2026 onward

- Annual GHG inventory submission (Scopes 1–2).
- Annual progress reporting to the Environment Minister.
- Carbon budgets reviewed every 5 years through at least 2040.

* * *

#### Disclosure requirements

Entities with carbon budgets must:

- Submit an annual, board-approved GHG inventory, covering Scopes 1 and 2 emissions.
- Develop a Mitigation Plan aligned to the allocated carbon budget.
- File an annual progress report using the national electronic reporting platform.

All reporting must be independently verified and conform to [ISO 14064](https://www.iso.org/standard/66453.html) or equivalent standards.

Entities not under carbon budget orders must continue reporting GHG emissions under the existing GHG Reporting Regulations.

* * *

#### Third-party assurance

Mandatory for all carbon-budgeted entities. Requires independent verification of GHG inventories by accredited bodies (ISO 14064 or equivalent).

* * *

#### Penalties for non-compliance

##### **Criminal offences**

Fines up to R 5 million or imprisonment up to 10 years for deliberate breaches.

##### **Administrative penalties**

Per-ton fines for emissions exceeding the allocated carbon budget.

##### **Operational consequences**

Potential suspension of environmental authorizations or licences.

##### Effortlessly manage your carbon budget obligations

Greenplaces streamlines mandatory GHG inventories, mitigation planning, and ISO 14064 verification—simplifying compliance under South Africa’s Climate Change Act.

### Similar regulations

- Global

### IFRS Sustainability Disclosure Standards (ISSB)

[Learn more](/content/regulation/ifrs-sustainability-disclosure-standards-issb/index.html)

- Global

### Global Reporting Initiative (GRI)

[Learn more](/content/regulation/global-reporting-initiative-gri/index.html)

- Global

### Sustainability Accounting Standards Board (SASB)

[Learn more](/content/regulation/sustainability-accounting-standards-board-sasb/index.html)