The carbon budgets are a mechanism through which South Africa’s mitigation
commitments could be translated to emissions targets for subsectors and companies.
Designed by the Department of Environmental Affairs (DEA), they provide a GHG emissions allowance against which physical emissions arising from the operations of a company during a defined time period will be tracked. In the period to 2020, the carbon budgets will not be a compliance instrument but rather will be used to increase understanding of the emissions profile of participating companies, and to establish monitoring, reporting, and verification (MRV) processes. Beyond 2020, they are intended to become compulsory.