South Africa's Climate Change Act commenced on 17 March 2025, with key carbon-budget provisions deferred pending regulations. This guide explains what the Act requires of the agricultural sector and what AgriTech operators should be planning for.
A Long-Awaited Statutory Framework
The Climate Change Act 22 of 2024 was assented to by the President in July 2024 and proclaimed into commencement on 17 March 2025 by Proclamation 251 published in Government Gazette 52319. The Act establishes South Africa's first comprehensive statutory framework for climate change response, building on years of policy development since the publication of the National Climate Change Response White Paper in 2011.
For the agricultural sector, the Act creates a legal infrastructure that will reshape the regulatory environment for farming operations, AgriTech platforms, and rural development initiatives over the next decade. Although several of the Act's most consequential provisions have been deferred pending regulations, agricultural operators should begin engaging with the framework now to position for the implementation phase.
What Is in Force, and What Is Deferred
The Act came into operation on 17 March 2025, but with significant exclusions. Sections deferred to a later commencement date include sections 12(6), 13(1), 13(2), 13(3)(b), 14(3)(a), 15(5), 15(6), 17, 18, 19, 20, 21, 22, 25(4)(c), 26(2) to (6), 27, 28, and 30(2)(a) and (b). The deferral was made because the Department of Forestry, Fisheries and the Environment is developing implementing regulations.
The deferred provisions include the carbon budget regime under sections 17 to 22 and the Greenhouse Gas mitigation plan obligations. Until these provisions are proclaimed and the implementing regulations are finalised, the principal compliance pathway for emissions remains the Carbon Tax Act 15 of 2019.
The Presidential Climate Commission
The Act formalises the Presidential Climate Commission (PCC) as a public entity under the Public Finance Management Act 1 of 1999. The PCC comprises 25 members representing government, organised labour, civil society, traditional leaders, the South African Local Government Association, and business. Its mandate is to advise on the national climate change response, mitigation, and adaptation, and to steer the just transition.
For agricultural sector stakeholders, engagement with the PCC's work programme is a route to influence the development of the implementing regulations and the sectoral adaptation strategy.
Sectoral Adaptation Strategies
The Act requires the development of national adaptation objectives and a National Adaptation Strategy and Plan, supported by sector-specific adaptation strategies. Agriculture is among the sectors required to develop a sectoral adaptation strategy and plan addressing climate vulnerability, adaptation responses, monitoring and evaluation indicators, and implementation timelines.
The agricultural sector's exposure to climate change is well documented: water variability, temperature extremes, shifting pest and disease ranges, soil degradation, and storm frequency all impact crop and livestock production. Effective adaptation strategies will require coordination between commercial agriculture, smallholder farming, traditional leadership structures (where farming is on communal land), AgriTech operators, and the Department of Agriculture, Land Reform and Rural Development.
Carbon Budgets and GHG Mitigation Plans
When the deferred provisions are proclaimed and supported by regulations, the carbon budget regime will require designated emitters to operate within a published carbon budget for a defined commitment period. GHG mitigation plans will document the measures the emitter is taking to remain within budget. The Act creates an offence for failure to prepare and submit a GHG mitigation plan to the Minister, with maximum penalties of R5 million and imprisonment for up to five years on first conviction, escalating on second or subsequent conviction.
Agriculture is a sector with significant emissions exposure (livestock methane, fertiliser N2O, on-farm fuel use, and processing energy use). The eventual scope of carbon budget application to agricultural operators will depend on the implementing regulations and any sector-specific thresholds.
Carbon Tax Interaction
The Carbon Tax Act 15 of 2019 remains the operative emissions pricing mechanism. The Carbon Tax has agricultural-specific provisions including allowances for biological emissions and certain renewable input fuels. The relationship between the future carbon budget regime under the Climate Change Act and the existing Carbon Tax Act is one of the most significant outstanding policy questions, and operators should monitor the carbon tax allowance review process and the Climate Change Act regulations in parallel.
Climate Finance and the Just Transition
Following the United States' withdrawal from the Just Energy Transition partnership in early 2025, total international pledges to South Africa's just transition climbed to approximately US$12.8 billion through the International Partners Group (United Kingdom, Germany, France, European Union) and additional contributions from Spain, Switzerland, and Canada. The just transition financing landscape is increasingly relevant to agriculture as adaptation and resilience investment becomes a financing priority.
Practical Implications for AgriTech Operators
AgriTech operators should consider the Act's implications across multiple dimensions. Data infrastructure for emissions monitoring, soil carbon measurement, and water use efficiency is becoming a regulatory adjacent capability. Carbon market positioning for soil carbon sequestration and regenerative agriculture practices may become commercially material as voluntary and compliance markets develop. Adaptation services for climate-resilient crop selection, water-efficient irrigation, and pest forecasting are increasingly part of the AgriTech value proposition.
How Mashiane Attorneys Can Assist
Our Smart Agriculture practice advises commercial farmers, agricultural co-operatives, AgriTech platforms, and rural development organisations on Climate Change Act compliance positioning, Carbon Tax planning, sectoral adaptation strategy engagement, climate finance structuring, and emissions data governance. Contact our team for a climate compliance briefing.