South Africa’s climate change response has reached another implementation milestone, with new regulations setting out how the Presidential Climate Commission (PCC) will operate and account for its work.
The regulations, published by Forestry, Fisheries and the Environment Minister David Maynier in the Government Gazette on November 6, clarify the commission’s governance, decision-making and accountability arrangements.
PCC executive director Dorah Modise said the regulations establish a clear operational framework for how the commission will function, exercise its mandate and account for its work as a Schedule 3A public entity.
“This is an important step towards strengthening the PCC’s institutional arrangements and ensuring that it operates effectively, transparently and with the necessary accountability to deliver on its statutory mandate,” she said.
For businesses, the development comes as South Africa advances its transition towards a low-carbon and climate-resilient economy, a process expected to influence investment decisions, production costs and the competitiveness of industries.
What this means for businesses
The PCC advises the government on climate change mitigation, adaptation and the socioeconomic implications of the country’s transition to a low-carbon economy.
Its recommendations are relevant to businesses because government policies informed by its work can shape the operating environment for industries, particularly mining, energy, manufacturing, agriculture and transport.
The Climate Change Act of 2024 provides for sectoral emissions targets and carbon budgets for companies identified as significant greenhouse gas emitters.
Companies subject to carbon budgets must account for their emissions and implement mitigation plans, making emissions management an increasingly important consideration in operational and investment planning.
This could require affected businesses to invest in cleaner production processes, energy-efficient technologies and alternative energy sources to manage their exposure to emissions-related costs.
The carbon tax also adds to the financial considerations facing emissions-intensive companies, particularly where operations exceed applicable emissions allowances.
However, the newly published PCC regulations do not introduce additional carbon budgets or new emissions limits for businesses. Rather, they strengthen the institutional arrangements of the commission responsible for advising government on the country’s climate response.
Investment opportunities and transition
The transition also presents commercial opportunities for businesses involved in renewable energy, energy efficiency, cleaner technologies and climate-resilient infrastructure.
The commission advises government on climate change mitigation, adaptation and the socioeconomic implications of the country’s transition.
Its work is relevant to businesses because climate policies influence investment decisions, industrial development and the cost of adapting operations to changing environmental requirements.
Mining, manufacturing, energy and agricultural businesses, in particular, must consider how climate-related policies could affect production, infrastructure, energy consumption and long-term investment.
However, businesses in emissions-intensive industries face the challenge of balancing the cost of decarbonisation with production requirements, employment and international competitiveness.
The Minerals Council South Africa has previously called for climate policies to take account of mining investment and existing operational authorisations when allocating carbon budgets.
PCC deputy chairperson Dipak Patel said the regulations provide greater institutional certainty for the commission, establish transparent reporting and accountability measures and formalise processes for considering evidence-based policy advice.
“The PCC’s mandate to independently advise on all matters related to the climate change response in South Africa is now assured in law,” he said.
The commission said it would continue promoting social dialogue and evidence-based recommendations as South Africa implements its climate commitments.
