Lee Swan, Head of Sustainability at Alexforbes
On 23 July 2024, President Cyril Ramaphosa signed the Climate Change Bill into law, marking a historic milestone in South Africa’s journey towards addressing climate change.
The Climate Change Act outlines South Africa’s national strategy for climate change, setting ambitious targets for a low-carbon and climate-resilient future. It aims to facilitate a comprehensive climate change response and support a long-term, equitable transition to a low-carbon economy, in alignment with the country’s commitments to the Sustainable Development Goals (SDGs).
The Act encompasses both climate change mitigation and adaptation measures. It mandates that the Minister of Forestry, Fisheries and the Environment request crucial data, information, or documents from businesses to support the National Climate Change Response White Paper.
Additionally, the Act formalises the Presidential Climate Commission, which has been functioning for several years. This Commission is responsible for monitoring and evaluating progress towards emission reduction and adaptation goals, offering guidance on the nation’s climate change response and supporting the transition to a climate-resilient and low-carbon economy.
The Act promotes cooperative governance by assigning responsibilities not only to the Minister but also to provincial and municipal authorities through their respective MECs and mayors.
Within 12 months, the Minister is required to develop adaptation scenarios based on the best available scientific evidence. These scenarios will predict the likely impacts of climate change in South Africa and will be valuable to both public and private sectors. They will inform the development of a National Adaptation Strategy and Plan, as well as Sector Adaptation Strategies and Plans.
The Act, along with the associated strategies and plans, provides regulatory clarity regarding climate change and outlines the direction for necessary developments in both public and private sectors.
Alexforbes research indicates that South African corporates, retirement funds and asset managers still have work to do in integrating climate change risks and opportunities into their policies and practices.
Further regulatory changes are anticipated to support the goals outlined in the Climate Act. Institutions should therefore be proactive in preparing for these changes.
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