Background of South Africa’s Nationally Determined Contribution (NDC) and adoption of an Energy Performance Certificate as manner in achieving more energy efficient:
Currently, South Africa’s energy supply is still largely dependent on electricity generated by coal, which currently sits at 85 % – or 42 000 MW (megawatts) – as of 26 January 2025 of all of South Africa’s electricity generated via coal power stations. South Africa has, however, made an updated climate promise to United Nations in 2021, by way of adopting an updated Nationally Determined Contribution (NDC). The NDC sets out South Africa’s national climate action plan, outlining South Africa’s commitment to reduce greenhouse gas emissions and to adapt to climate change under the Paris Agreement as adopted at the United Nations Climate Change Conference (COP21).
Below are key highlights of South Africa’s NDC:
- South Africa’s updated mitigation targets represent a significant progression from the first NDC: South Africa commits to a fixed target for greenhouse gas emissions levels of 398-510 MtCO2e by 2025, and 350-420 MtCO2e by 2030, compared to 398 to 614 MtCO2e in 2025 and 398 to 614 MitCO2e in 2030 as communicated in the first NDC.
- The revised NDC includes the country’s first adaptation communication with elaborated measures on adaptation.
- In its updated NDC, South Africa has also set the goal to reach net zero emissions by 2050 in its Low-Emission Development Strategy.
Currently, with the worsening of global warming, a collective need is required to meet the promises, and to ensure that both a sustainable and energy-efficient South African carbon footprint. The South African Government, through the Minister of Resources and Energy, during the year 2020, published under Gazette Notice 700 of 2020, under section 19 (1)(b) of the National Energy Act 34 of 2008, certain regulations (“regulations”) to mandate that certain buildings display an Energy Performance Certificate.
South Africa, with the aim of achieving its objectives towards its NDC, has set out the requisites for the following types of buildings to adhere to before 7 December 2025, to display mandatory Certificates (“EPCs”):
- non-residential buildings and government buildings, which have a dominant capacity such as offices, entertainment, public assembly, theatrical and indoor support, or places of instruction; and are
- Non-residential private sector buildings with a total net floor area of 2 000 square metres, or government buildings with a total net floor area of over 1 000 square metres, such as educational facilities.
What is an EPC and how is it rated?
An EPC is a certificate that contains information about the energy efficiency of a building, and which depicts the amount of energy consumed per square meter of a building as result of the operations within the building. There are various ratings, ranging from A-rating, being the highest, most energy efficient level of energy rating, to a G-rating being the lowest, least energy efficient level of energy rating.
Calculations of an EPC rating, and duration of validity of an EPC after issuance:
The EPC ratings will be conducted by an accredited energy assessor duly authorised by the South African Energy Development Institute (‘SANEDI’) who shall conduct an onsite inspection and subsequent evaluation to review and factor in, inter alia, structural aspects, insulation, heating, ventilation (air conditioning), lighting and renewable energy installations of a building as classified under sub-sections 3(1)(a)–(c) and 3(2)(a)-(c) of the Regulations. It is important to note that an EPC must be issued by an accredited regulatory body, which must also be in accordance with the South African National Standard (‘SANS: 1544: 2014). The validity of an EDC prevails for five (5) years from the date of issuance.
Consequences for failing to obtain an EPC before 7 December 2025, as set out in terms of Section 20 (1)(a) – (c) of the National Energy Act 34 of 2008:
While is it is important to note that currently buildings with a high EPC rating will not be penalised, failing to comply with the EPC deadline of 7 December 2025 has serious ramifications. Failing to publicly display an EPC is an offence in terms of section 20(1) of the National Energy Act 34 of 2008, and the following sanctions can be imposed:
- A fine not exceeding R 5 000 000,00 (five million rand); and/or
- Imprisonment for a period not exceeding five years; or
- Both a fine and imprisonment.
Conclusion:
It is, therefore, compulsory for accounting officers or building owners to submit and obtain an EPC before the deadline of 7 December 2025, to avoid such sanctions. The cooperation of businesses in reducing greenhouse gases will assist South Africa to meet its obligations in terms of the NDC. Additionally, decreasing reliance on the grid can reduce operational costs in the long term and can lower carbon emissions.
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of the articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes and should not be construed as legal advice.
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