Climate Change Act Pushes Travel Industry To Rethink Policies Around Emissions And Affordability

New national carbon budget regulations, which came into effect on January 1, will see some South African corporates taking a stricter stance on travel policies to reduce emissions, forcing TMCs to curate travel that balances affordability and sustainability.

Stricter sustainability requirements

The Climate Change Act 2025, which came into effect in March 2025, requires all organs of state to track and publish reports on their carbon emissions and, by extension, their public and private bidders and suppliers. However, last year, the Minister of Forestry, Fisheries and the Environment also approved the publication of the Draft National Greenhouse Gas Carbon Budget and Mitigation Plan Regulations for public comment and implementation in 2026. 

The Carbon Budget Regulation 2026, which is being finalised as a result, will see companies which currently emit more than 30 000 tonnes of Scope 1 CO₂ per year and those that participate in carbon-intensive industries, receive a carbon budget for five-year cycles until 2040. These industries include mining and quarrying, manufacturing, energy, transport and waste management.

As a result, corporates will likely turn to travel agents for guidance on how to incorporate sustainable options for flights, hotels, transport and other travel suppliers into their travel policies, as well as for emissions measuring and reporting.

“TMCs definitely have an important role to play, but I do want to stress that carbon projects need to be driven by the corporate client. Too often, pressure is put on the TMC to assist with a variety of different requirements, such as traveller compliance, where the corporates don’t take enough responsibility for driving what is needed in the organisation. The TMC should be there in a supporting role, with overall onus being on the corporate client and their travellers,” emphasises Monique Swart, Founder of the African Business Travel Association.

The balancing act

A challenge that TMCs will face is balancing corporate clients’ expectations around affordability and their emission budget allowance assigned to travel. Industry experts explain that this requires a combination of communication, client data and the use of agencies’ unique relationships and skills. 

Jaco Brits, Head of Account Management at FCM, told Travel News that an integral first step was discussing and documenting clients’ targets for the year ahead, both in terms of cost-saving and, more often now, carbon emissions goals.

Corporate Traveller’s Head of Acquisition and Retention, Michelle Compton, also points out that agencies can use client data to plan for their client’s travel behaviours, such as when they choose to embark on business travel or opt for online meetings, and recommend travel strategies and suppliers that will help them meet their budgets.

For this reason, Swart said that TMCs with very strong data capabilities would be in a better position to find mid-line options that balanced cost and sustainability expectations.

“I suspect initially, costs will increase around the more sustainable travel options being selected.  But the question then becomes what the long-term cost could be when not selecting these more expensive and carbon-friendly options, and companies then need to weigh up their priorities and make their decisions from there,” said Swart.

A dilemma that agents will face more frequently is how more expensive direct flights produce less emissions, compared with cheaper flights with multiple legs.

Brits explains that one of the ways to mitigate this challenge is by recommending advanced purchases. 

Agencies can also leverage their buying power and relationships with suppliers to offer clients the best rates for accommodation, flights and transport on frequently travelled routes.

“TMCs are perfectly positioned to assist clients in emissions measurement and reporting through their understanding of which routes and classes of travel drive their footprint, the emissions differences between different airlines, hotel footprint by city etc. They can also assist with strategic input around trip purpose controls, cabin class rules, rail versus air thresholds, particularly in Europe, and preferred suppliers with better emissions performance.  All of these various insights that TMCs are well positioned to gather across the supply chain will be incredibly useful to corporate clients,” said Swart.