On 17 March 2025, portions of South Africa’s Climate Change Act, 22 of 2024 (the “Act”) came into force. This landmark legislation establishes a binding framework to address the growing threat of climate change, aligning with the country’s constitutional obligations and international commitments under the Paris Agreement.
Aimed at facilitating a just transition to a low-carbon, climate-resilient economy, the Act imposes rigorous obligations across government spheres and sectors, with significant implications for industries like mining. This article explores the Act’s core mechanisms (particularly sectoral emissions targets (“SETs”) and carbon budgets) and their anticipated impact on South Africa’s mining sector, a linchpin of the national economy facing both climate vulnerabilities and decarbonisation imperatives.
THE STATUTORY FRAMEWORK
The Act’s objectives, outlined in section 2, underscore a dual focus: mitigating greenhouse gas (“GHG”) emissions to align with global commitments, such as the Paris Agreement’s Nationally Determined Contribution; and enhancing adaptive capacity to address climate impacts. It operates as a specific environmental management act under the National Environmental Management Act, 107 of 1998, as amended, superseding conflicting legislation relating to climate change.
Central to its mitigation strategy are SETs and carbon budgets, which will target high-emission sectors, including mining. For mining, identified in Schedule 1 as a function relevant to the development of SETs, the Act heralds a regulatory pivot. In this respect and within the next year, the Minister is obligated to list GHG emitting sectors and sub-sectors subject to SETs. It is likely that such SETs will be informed by the Draft Sectoral Emissions Targets Report, published in April 2024, which highlights mining’s emissions profile (fuel use, coal mining, fugitive emissions, and land sector impacts) and designates the Department of Mineral Resources and Energy and the Department of Forestry, Fisheries and the Environment as the authorities responsible for drafting and enforcing SETs through policies and measures.
Provinces and municipalities are, furthermore, mandated to integrate climate responses into planning, while the Presidential Climate Commission will continue to advise on national climate change response and achieving a just transition; balancing environmental goals with socio-economic equity.
DECARBONISING MINING: CHALLENGES AND OPPORTUNITIES
Mining, a cornerstone of South Africa’s economy, faces acute climate-related challenges: water scarcity, extreme weather, and energy-intensive operations disrupt production, while global pressure mounts to decarbonise. The Act’s emphasis on a just transition acknowledges these tensions, aiming to reconcile emission reductions with job preservation and poverty alleviation; a critical consideration for an industry employing hundreds of thousands in, inter alia, gold, platinum, coal, and diamond extraction. Mining further underpins emerging green technologies (such as platinum group metals for electric vehicles and silicon for solar panels) offering opportunities to pivot toward sustainable value chains.
The Act mandates carbon budgets for entities conducting listed GHG-emitting activities, requiring them to submit mitigation plans detailing compliance strategies. For mining houses, this could mean curbing fuel consumption, adopting renewable energy technologies, and managing fugitive emissions; particularly from coal operations. The Draft SET Report, a guiding document at present, notes the Post-2015 National Energy Efficiency Strategy as the only existing policy driving emissions reductions, but stresses the need for broader policies and measures to reduce fugitive emissions as well as the disturbance of carbon sinks and enhance carbon sinks during and after mine rehabilitation. Formal regulations, currently being developed, will be required to delineate carbon budgets and the SETs informing same.
CRITICAL ANALYSIS: IMPLEMENTATION AND GAPS
The Act’s framework is ambitious, yet its efficacy hinges on implementation and proper regulation. Importantly, it appears to lack teeth. For example, whilst the failure to prepare and submit GHG mitigation plans may attract a R5 to 10 million fine or 5 to10 years’ imprisonment, there are currently no penalties for exceeding carbon budgets and failing to implement said GHG mitigation plans. This raises questions about enforcement, a gap the forthcoming regulations must address. Moreover, the Act’s silence on loss and damage from climate disasters (like the 2022 KwaZulu-Natal floods) misses a chance to assign liability for climate related harm.
Whilst the Draft SET Report advocates reducing emissions through technology shifts and land management, without operational policies and measures and clear regulations delineating listed activities and carbon budgets, mining houses face uncertainty.
Coordination across provincial and municipal spheres, as mandated in sections 8 and 9, is laudable but strains South Africa’s intergovernmental framework, risking delays. The reliance on the DFFE and Minister for oversight may further overburden a single entity, necessitating robust interdepartmental collaboration.
CONCLUSION
The Climate Change Act, poised to sharpen South Africa’s climate change response, places the mining sector at a crossroads. Its envisaged SETs and carbon budgets promise to drive decarbonisation, aligning with global sustainability goals while leveraging mining’s role in green technologies. However, the Act’s success depends on stringent regulations, and enforceable penalties; elements yet to crystallise. For mining houses, proactive adaptation to these forthcoming obligations is essential to ensure compliance, restore investor confidence, and contribute to a just, low-carbon future. As regulations unfold, stakeholder engagement will be pivotal to bridge gaps and harness the Act’s transformative potential.
