By Chinasaokwu Helen Okoro
South Africa is proposing strict new regulations to curb carbon emissions across nearly all sectors of its economy. The draft rules, set to take effect early next year, will introduce carbon budgets for emitters of climate-warming greenhouse gases. Failure to comply with reporting requirements could result in executive imprisonment, while exceeding emissions limits may trigger a higher carbon tax rate.
“These measures give industry a reason to act now instead of delaying,” said Jarredine Morris, co-head of the Africa Office of the Carbon Trust. “We’re the only country pricing carbon across our entire economy, excluding only waste and agriculture.”
The proposed regulations come as South Africa, the most carbon-intensive economy in the G20, works to reduce its reliance on coal and cut emissions—currently ranked 15th globally, surpassing those of larger economies like France and the UK.
The push also comes amid pressure from key trading partners. The EU and UK are introducing carbon border adjustment mechanisms that could penalize carbon-heavy exports.
Although South Africa’s carbon pricing is broader in scope than those of many nations, it remains relatively low. The current tax stands at R236 per ton, with companies allowed to offset up to 95% of their liability. Globally, the average carbon price is $19 per ton, and carbon taxes generated over $100 billion last year, according to the World Bank.
Initial carbon budgets are expected to align closely with existing emission levels, offering a “realistic” starting point, according to Morris.
Two major emitters—Sasol and Eskom—account for roughly 60% of the country’s greenhouse gas output. Sasol emits over 60 million tons annually, while Eskom contributes about 200 million tons. Both have previously secured exemptions from emissions limits, citing cost concerns.
Under the proposed law, companies emitting more than 30,000 tons of greenhouse gases annually must report on their compliance and outline future reduction plans. Executives could face fines ranging from R5 million to R10 million and up to 10 years in prison for first and second offences.
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