South Africa to Launch Framework for High-Integrity Carbon Markets

The South African government is finalising a new national framework to guide and expand high-integrity carbon markets, marking a significant step in the country's transition toward a low-carbon, climate-resilient economy.

Speaking at the Carbon Markets Africa Summit 2025 in Johannesburg, Minister of Forestry, Fisheries and the Environment Dr Dion George announced that the framework is designed to build credibility, attract investment, and align carbon market activities with global climate goals, including the Paris Agreement and South Africa's Nationally Determined Contributions (NDCs).

"The framework lays the foundation for developing, governing, and scaling high-integrity carbon markets in South Africa. It is designed to create an enabling environment for credible, transparent, and socially inclusive carbon market activity," Dr George said. "The future of carbon markets will be defined not by promises but by performance. Our goal is simple: to build a credible system that attracts investment, delivers real emission reductions, and creates lasting value for our people."

Building Integrity and Trust in Carbon Markets

The Draft South African Carbon Markets Framework, developed under Article 6 of the Paris Agreement, aims to set clear standards and institutional mechanisms for the governance of carbon credits. It will regulate the generation, verification, and trading of carbon credits to ensure environmental integrity, transparency, and social inclusiveness.

The draft has undergone extensive consultation with stakeholders from government, business, academia, and civil society, and is now in the final stages of vetting before being gazetted for public comment.

According to the Minister, the framework will ensure that carbon markets serve as a complementary tool—not a substitute—for national climate action.

"Carbon markets are not a substitute for national action. They are a tool to deepen ambition, enable cooperation, and deliver measurable results," he said. "They provide a pathway for countries to work together while maintaining environmental integrity and national sovereignty."

Linking Finance, Climate Action, and Economic Inclusion

To complement the framework, the department is also developing a Draft Carbon Credit Revenue Plan, which will create mechanisms for the monetisation of South Africa's natural assets and the generation of sustainable revenue streams from verified carbon credits.

Together, these two policy instruments represent what Dr George called a "bold and integrated approach" to advancing climate finance and supporting inclusive economic growth.

The three key objectives of the Draft Carbon Credit Revenue Plan are:

1. Generating sustainable revenue by converting forests, wetlands, oceans, and protected landscapes into high-integrity carbon credits.

2. Reinvesting carbon revenues into national environmental programmes that align with South Africa's NDC targets and development priorities.

3. Reinforcing South Africa's leadership in climate innovation by demonstrating how environmental protection can drive growth, social inclusion, and resilience.

"Together, these two draft instruments represent a bold and integrated approach to advancing climate finance: a framework for integrity, a plan for implementation, and a vision for inclusive growth," the Minister said.

Scaling Climate Projects Across Key Sectors

South Africa's carbon market approach builds on a strong foundation of national environmental programmes that already align with the country's G20 commitments in areas such as biodiversity, climate change, oceans, land use, and waste management.

Forestry and Land Use: Expanding the Ten Million Trees Programme

The Ten Million Trees Programme, one of South Africa's flagship reforestation initiatives, is set to be scaled up as a major afforestation and carbon sequestration project. The government is also advancing REDD+ programmes (Reducing Emissions from Deforestation and Forest Degradation) to protect ecosystems while creating jobs and improving rural livelihoods.

Biodiversity and Conservation: Restoring Ecosystems

National parks and protected areas are being managed as verified carbon sinks, with large-scale grassland restoration and biome rehabilitation projects creating green jobs and enhancing biodiversity.

Oceans and Coasts: Unlocking Blue Carbon Potential

South Africa's 3,000-kilometre coastline offers vast potential for Blue Carbon projects—initiatives that store carbon in coastal and marine ecosystems such as mangroves, seagrass meadows, and salt marshes. These ecosystems not only sequester carbon but also protect coastal communities against storm surges and erosion.

Chemicals and Waste: Turning Pollution into Value

In the waste and industrial sectors, the department is investing in methane capture and greenhouse gas destruction technologies. Projects that capture emissions from landfills and wastewater treatment plants are being developed to convert pollution into environmental and financial assets through tradable carbon credits.

Institutional and Financial Mechanisms

The new framework will be supported by a robust institutional structure, including an inter-agency coordination mechanism, an independent verification system, and a national carbon registry.

Pilot projects will be launched across multiple sectors to demonstrate early success and build investor confidence. These pilot initiatives will test methodologies, pricing mechanisms, and equitable benefit-sharing models.

"We will begin with a comprehensive status analysis and a strong institutional setup, including an inter-agency arrangement. Pilot projects will be launched in identified sectors to demonstrate early success," Dr George confirmed.

A fair revenue-sharing model will ensure that proceeds from carbon markets benefit the national fiscus, project reinvestment, and local communities — particularly those serving as stewards of forests, wetlands, and coastal areas.

Aligning with International Climate Mechanisms

South Africa's carbon market design is fully aligned with the Paris Agreement's Article 6 Crediting Mechanism, ensuring that domestic credits are credible, transparent, and tradable on international markets. This alignment will also enable cross-border cooperation with countries seeking high-quality emission offsets while maintaining environmental integrity.

The framework is expected to enhance South Africa's attractiveness to climate investors and multilateral green finance institutions, such as the Green Climate Fund and Global Environment Facility.

Driving a New Era of Climate-Smart Growth

Dr George said the framework signals a new chapter in South Africa's climate leadership, one that integrates environmental protection with economic opportunity.

"Through integrity, innovation, and partnership, Africa can lead a new era of climate-smart growth," he said.

By mobilising private investment, fostering technological innovation, and promoting community inclusion, the government envisions a carbon market ecosystem that balances development with sustainability, turning South Africa's natural assets into engines of green economic growth.

As the global demand for credible carbon credits continues to rise, South Africa's forthcoming framework positions the country as a regional leader in high-integrity carbon finance — ready to contribute to both global decarbonisation and domestic economic renewal.