CARBON CREDIT MARKET: DEVELOPMENT PROPOSALS OUT FOR COMMENT

CARBON CREDIT MARKET: DEVELOPMENT PROPOSALS OUT FOR COMMENT

• 29 October 2025
• National Treasury
• SA Legal Academy

National Treasury has called for input by 1 December 2025 on proposals for developing South Africa’s carbon credit market. They were released in the form of a consultation paper and focus on key recommendations outlined in an accompanying media statement.

These are to:

• define ‘the legal nature of carbon credits’, in line with financial sector requirements
• ‘reform’ carbon offset administration system design and operation
• dedicate an improved system to tracking and approving credits ‘as an internationally transferred mitigation outcome in line with 2015 UN Climate Change Convention Paris Agreement requirements
• introduce appropriate local, cost-effective certification standards (among other things by accrediting local validators and verifiers)
• ‘adjust’ financial sector regulation to:
  • improve active oversight, and
  • address capital requirements-related issues
• develop an exchange control framework, and
• ensure ‘market integrity and efficiency’.

It is envisaged that the process of implementing these recommendations would be aligned with:

• ‘the ongoing carbon tax policy process’, and
• South Africa’s emission reduction commitments.

Please click the links below for more information:

• consultation paper
• media statement
• input template
• Paris Agreement

Published by SA Legal Academy Policy Watch

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