Date: 27 Nov 2024

Concerns raised Over South Africa’s approach to Paris Agreement Article 6

The Paris Agreement was adopted by 196 Parties at the UN Climate Change Conference (COP21) in Paris, France, on 12 December 2015. As South Africa crafts its framework to implement Article 6 of the Paris Agreement, a legally binding international treaty on climate change, DearSA raises critical concerns regarding inefficiencies and the potential regulatory burdens on businesses.

This agreement that was undersigned by the South African Government on 22 April 20216 works on a five-year cycle of increasingly ambitious climate action or, ratcheting up carried out by countries.

According to Nolu Hlophoyi, spokesperson for DearSA, the intention of Agreement Article 6 is to mitigate greenhouse gas emissions whilst fostering sustainable development. Countries may voluntarily participate in this agreement and the managing committee will ensure that a share of the proceeds are used to cover administrative functions and remaining portions, will go towards assisting a developing country.

“While the initiative aims to align with global climate commitments and foster international cooperation on carbon credits, overlapping responsibilities between government entities and increased regulation could hinder economic participation, especially for smaller enterprises,” stated Hlophoyi.

According to Hlophoyi, the proposed Bill introduces governance structures such as a Designated Focal Point (DFP) to oversee South Africa’s engagement with international carbon markets and compliance with mechanisms, namely Internationally Transferred Mitigation Outcomes (ITMOs). However, concerns arise about the coordination between the DFP and other departments, particularly the Department of Mineral Resources and Energy (DMRE), which may lead to inefficiencies and slow implementation.

Furthermore, the integration of this framework with existing legislation, including the Carbon Tax Act and the Climate Change Act, could result in additional layers of regulation.  “While these measures aim to prioritise environmental integrity and sustainable development, they risk creating barriers for small and medium-sized businesses. High compliance costs and complex regulations could stifle economic growth, limit innovation, and exclude smaller players from the emerging carbon credit market,” Hlophoyi concluded. 

Whilst challenges may be evident in adopting an environmentally sustainable future, the need is equally important. The critical question we foresee arising on behalf of our citizens is: Is South Africa ready and able to adopt such a program, voluntarily, whilst keeping a balance in the commitments to benefit economic functions as well as the environment? Just a few months ago, South Africa had struggles to keep the lights on and we need to factor our current situation into the future development plans.

DearSA supports South Africa’s commitment to global climate action but emphasises the need for balanced policies that encourage both environmental sustainability and economic inclusivity. Public participation is crucial to shaping a climate strategy that works for all South Africans, ensuring that regulations foster opportunity rather than exclusion.

Have Your Say
DearSA invites all stakeholders, including businesses, civil society, and concerned citizens, to participate in this critical discussion. Make your voice heard by submitting your views on the proposed framework and its potential impact on South Africa’s economic and environmental future. Click here
 

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