The Climate Change Act establishes a regulatory framework for decarbonisation in South Africa’s extractives sector, aligning with Paris Agreement commitments. Key provisions include sector-specific emissions reduction targets, carbon budgets, and mandatory monitoring and reporting. While enforcement issues and resource limitations exist, companies must prioritise emissions tracking and internal carbon pricing. Environmental, social and governance (ESG) imperatives already incentivise companies in this direction. Investors increasingly direct capital towards companies that demonstrate effective emissions management. Successful adaptation strategies and alignment with national goals are essential for companies to enhance sustainability and attract investment. Collaboration among stakeholders is critical for effectively implementing the Climate Change Act.
Vincent Obisie-Orlu is a Natural Resource Governance researcher at Good Governance Africa. He holds a BA in International Relations and Political Studies from the University of the Witwatersrand. His work focuses on natural resource governance of critical minerals, Environmental Social and Governance (ESG) issues, sustainable finance, and energy policy in light of the energy transition.
