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Inside South Africa’s Draft Carbon Budget Regulations

Inside South Africa’s Draft Carbon Budget Regulations

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 South Africa’s draft carbon budget regulations are here – and they could reshape how companies manage and report greenhouse gas emissions.

In this episode, Emma Reinecke speaks with Jan Willem Timmer, Principal Consultant at Brundtland, who played a key role in drafting the regulations, to unpack what they mean for businesses, policymakers, and South Africa’s climate commitments.

We cover the basics: what a carbon budget is, who will be affected, and how the system links to the existing carbon tax. With mandatory budgets planned to take effect in 2026, understanding the phased rollout, compliance requirements, and allocation methods is crucial for businesses and policymakers alike.

Key points of discussion:
• What carbon budgets are and their role under the Climate Change Act
• Which industries and emissions are covered, including thresholds for participation
• How carbon budgets interact with South Africa’s carbon tax
• The three allocation methodologies, including product-based benchmarking
• Phased rollout: voluntary reporting to mandatory compliance
• How stakeholder concerns have been addressed in the draft regulations

The draft regulations are open for public comment until the end of September. Comments can be sent to SETSComments@dffe.gov.za.

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