These draft regulations, published under the Climate Change Act (22 of 2024), are a significant development for businesses, emphasising the need for compliance and strategic planning in the transition to a low-carbon economy.
What You Need to Know
- Mandatory Carbon Budgets: Entities emitting over 30,000 tCO2e annually must submit GHG information for each facility to the DFFE and will receive carbon budget allocations for 5-year cycles.
- Mitigation Plans Required: Organisations will also have to submit detailed mitigation plans with its carbon budget submission. These should cover emission profiles, planned actions, and a clear monitoring and implementation framework. Mitigation Plans will have to be updated every five years.
- Technical Guidelines: Draft technical guidelines are also published, offering guidance on preparing and reporting carbon budgets and mitigation plans, including methodologies and compliance steps.
- Sectoral Application: The regulations are applicable to the below Activities:
Coal mining, production and/or refining of crude oil, production and/or processing of natural gas, production of synthetic fuels from coal or gas, cement production, glass production, ammonia production, nitric acid production, carbon black production, iron and steel production, ferro-alloys production, aluminium production (excluding foundries), polymers production, pulp and paper production, titanium production, electricity production from fossil fuels (excluding the use of backup generators), petroleum refining, chemical production, hydrogen production, sugar production, lead production, zinc production, charcoal and biochar production, lime production, ceramics production, brick production, domestic aviation, food and beverage productions (excluding sugar production) and mining.
- Proposed Reporting & Verification Requirements: Annual progress reports due for submission to the DFFE in March annually, are mandatory, and will provide information on the comparison of actual GHG emissions to the set carbon budget. Additionally, each commitment period (five-year period) will require three rounds of independent verification.
Your Feedback is Crucial
- The draft regulations are open for comment until 29 September 2025. Stakeholders are encouraged to review and have their say before the deadline.
- After the public comment period, the Department will revise the regulations and submit them for final approval by the Minister.
Why This Matters
If your business is involved in the Listed Activities, these regulations could significantly impact your reporting and strategic decision-making. It is essential to engage and provide feedback to ensure the Department considers the specific implications for both your industry and business, prior to publishing the final regulations.
How We Can Help
Should you need guidance interpreting the draft regulations or preparing a response, please feel free to reach out to Rumbi from Catalyst Solutions on rumbidzaim@catalystsolutions.global or 065 875 6217
