Case Law[2025] ZASCA 134South Africa
South Durban Community Environmental Alliance and Another v Minister of Forestry, Fisheries and the Environment and Others (479/2023) [2025] ZASCA 134 (17 September 2025)
Supreme Court of Appeal of South Africa
17 September 2025
Headnotes
Summary: Administrative Law Review – failure to take into account relevant considerations – environmental authorisations reviewable under ss 6 of the Promotion of Administrative Justice Act 3 of 2000.
Judgment
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## South Durban Community Environmental Alliance and Another v Minister of Forestry, Fisheries and the Environment and Others (479/2023) [2025] ZASCA 134 (17 September 2025)
South Durban Community Environmental Alliance and Another v Minister of Forestry, Fisheries and the Environment and Others (479/2023) [2025] ZASCA 134 (17 September 2025)
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sino date 17 September 2025
FLYNOTES:
ENVIRONMENT
– Authorisation –
Gas
power plant
–
Public
participation – Fundamentally inadequate – Notices
published only in English and Afrikaans newspapers despite
isiZulu
being dominant language in affected region – No meaningful
engagement with local communities – Process
failed to meet
requirement for inclusive and informed participation –
Environmental impact assessment did not adequately
address long
term climate implications of gas infrastructure –
Authorisation tainted by procedural and substantive
defects –
Appeal upheld –
National Environmental Management Act 107 of
1998
,
s 2.
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case no: 479/2023
In the matter between:
SOUTH
DURBAN COMMUNITY
ENVIRONMENTAL
ALLIANCE
FIRST
APPELLANT
THE
TRUSTEES OF THE
GROUNDWORK
TRUST
SECOND
APPELLANT
and
THE
MINISTER OF FORESTRY,
FISHERIES
AND THE ENVIRONMENT
FIRST
RESPONDENT
CHIEF
DIRECTOR: INTEGRATED
ENVIRONMENTAL
AUTHORISATIONS,
DEPARTMENT
OF FORESTRY,
FISHERIES
AND THE ENVIRONMENT
SECOND
RESPONDENT
ESKOM
HOLDINGS SOC LTD
THIRD
RESPONDENT
Neutral
citation:
South
Durban Community Environmental Alliance and Another v The Minister of
Forestry, Fisheries and the Environment and Others
(479/2023)
[2025] ZASCA 134
(17 September 2025)
Coram:
DAMBUZA, KGOELE and UNTERHALTER JJA,
KOEN and DOLAMO AJJA
Heard:
30 August 2024
Delivered:
17 September 2025
Summary:
Administrative Law Review –
failure to take into account relevant considerations –
environmental authorisations reviewable
under
ss 6
of the
Promotion
of Administrative Justice Act 3 of 2000
.
Environmental Law –
the principles established in s 2 of the National Environmental
Management Act 107 of 1998 (NEMA) apply
to interpretation and
implementation of all environmental laws and policies, and to all
exercise of public power that may significantly
affect the
environment – when considering an environmental authorisation
application the Minister of Forestry, Fisheries
and Environment must
consider whether there was adequate compliance with the public
participation requirements, the potential environmental
impacts of
the project or activity to which the authorisation relates, the
cumulative environmental impacts of the project, and
its need and
desirability.
ORDER
On
appeal from:
Gauteng
Division of the High Court, Pretoria:(Millar J, sitting as a court of
first instance):
1.
The appeal is upheld with costs including the costs of two counsel
where employed;
2.
The order of the high court is set aside and replaced with the
following order:
‘
1.
The decision of the first respondent which was issued on 13 October
2020 under reference no LSA 191719,
to dismiss the applicants’
appeal against the decision of the second respondent is reviewed and
set aside and substituted
with the following:
‘‘
The
appeal against the decision of the Chief Director to issue an
environmental authorisation for the proposed construction of the
Richards Bay Combined Cycle Gas Power Plant which was issued on 23
December 2019 under authorisation reference no 14/12/16/3/3/2/1123
is
upheld and that decision is set aside;
2.
The respondents are ordered to pay the applicants’ costs
jointly and severally, one or more paying the other(s) to
be
absolved, including the costs of two counsel where employed.’’’
JUDGMENT
Dambuza JA (Kgoele and
Unterhalter JJA, Koen and Dolamo AJJA concurring)
Introduction
[1]
During December 2019, the second respondent in this appeal, the Chief
Director (the Chief Director)
in the Integrated Environmental
Authorisations section of the Department of Forestry, Fisheries and
the Environment (the Department),
granted to the third respondent,
Eskom Holdings SOC Ltd (Eskom),
[1]
an environmental authorisation for the construction and operation of
a combined cycle gas power plant (the power plant) in Richards
Bay.
An appeal lodged by the two appellants against that environmental
authorisation was dismissed by the first respondent, the
Minister of
the Department of Forestry, Fisheries and the Environment (the
Minister). So was their application to the Gauteng Division
of the
High Court, Pretoria, (the high court) for a review and setting aside
of the environmental authorisation and the dismissal
of their appeal
against the granting of the authorisation. This appeal, with the
leave of this Court, is against the decision of
the high court.
Background
[2]
Eskom proposes to build a mid-merit
[2]
gas and diesel fuelled ‘gas-to power’ power plant with an
installed power generation capacity of 3000MW at the Richards
Bay
Industrial Development Zone (the IDZ). The intention is primarily to
power the plant with gas and to use diesel as back-up.
Gas will be
delivered to the plant from a gas terminal at the Richards Bay Port
via a gas pipeline which is yet to be built. It
is envisaged that
Transnet SOC Limited (Transnet)
[3]
will construct the pipeline.
It
appears that the gas will be sourced from Mozambique, although this
not certain. There is also an indication that it might be
sourced
from the Karoo Basin. Eskom states that the gas will be sourced from
‘foreign countries’.
Regardless
of the source of the gas, the infrastructure related to the power
plant will be located within Umhlathuze Local Municipality
in the
KwaZulu-Natal Province.
According
to the final environmental impact report, Richards Bay was identified
by Eskom as the appropriate area for locating the
power plant because
of its proximity to sources of gas ‘close to the KwaZulu-Natal
Province’.
[3]
Because the plant will involve a number of listed activities, a
scoping and environmental impact assessment
[4]
was conducted by Savannah Environmental (Pty) Ltd (Savannah) on
behalf of Eskom.
[5]
A ‘listed
activity’ is defined in s 1 read with s 24 (2)
(a)
and
(b)
of
the National Environmental Management Act 107 of 1998 (NEMA).
[6]
In terms of these sections, the Minister or a Member of a provincial
Executive Committee (MEC), with the concurrence of the Minister,
may
identify activities which may not commence without an environmental
authorisation from a competent authority and geographical
areas in
which specified activities may not commence without such
authorisation. In this case, the Minister is the competent authority
responsible for considering, reviewing and granting applications for
environmental authorisations.
[7]
[4]
Generally, in respect of each proposed listed activity, an applicant
submits to the competent authority
either a Basic Assessment Report
or a Scoping and Environmental Impact Assessment Report (EIA
Report).
[8]
This is followed by
a detailed environmental assessment report on the assessed potential
environmental impacts of the listed activity.
In this case, Savannah
published a first scoping report for the power plant on 21 August
2017. That report remained open for public
inspection until 20
September 2017. It was then submitted to the Department on 6 October
2017.
[5]
A period for review and public comment on the EIA Report was provided
from 24 March and July 2019. The
availability of a first and revised
EIA Report was advertised in March and July 2019. The final EIA
Report was published in August
2019. On 23 December 2019 the
Chief Director approved the environmental authorisation application.
In granting the authorisation,
the Chief Director reasoned that,
amongst other things, the power plant will result in a reduction of
Eskom’s fuel use and
therefore a reduced carbon footprint per
Megawatt (MW) of electricity produced. He also found that a
‘sufficient’ public
participation process was undertaken
in relation to the environmental impact assessment report.
[6]
On 27 January 2020, the appellants, South Durban Community
Environmental Alliance (the first appellant),
and the Trustees of the
Groundwork Trust (the second appellant or the Trust) appealed the
decision to grant the environmental authorisation.
On 13 October
2020, the Minister dismissed the appeal and confirmed the decision of
the Chief Director. In the internal appeal
decision, the Minister
said she had considered, amongst other factors, that the 2019
Integrated (energy) Resource Plan (IRP) includes
the use of
non-renewable energy resources to allow for the development of the
renewable energy sector and the associated infrastructure,
as well as
to enable the establishment of energy developments that can fill the
gaps in energy supply. She reasoned that there
was still a need for
baseload energy, and that gas-to-power is a cheaper energy option
than coal power generation.
[7]
In the ensuing high court review application, the appellants
challenged the decision to grant the authorisation
on nine grounds.
They contended that the decision was based on inadequate assessment
of the climate change impacts of the power
plant, that it was
premised on an inadequate evaluation of the need and desirability of
the plant, and of alternatives to it, and
that it resulted from an
inadequate consideration of the cumulative environmental impacts of
the plant, the infrastructure relating
to it, and its construction
and operation on the coast. They also argued that the public
participation process undertaken prior
to the grant of the
authorisation was inadequate and procedurally unfair.
[8]
In the high court it was common cause that renewable sources of power
were never considered when contemplating
the new power station.
Furthermore, neither the cumulative environmental impacts of the
complete power plant development,
[9]
nor its impacts, together with those of similar developments, were
examined. The high court accepted that only the combined cycle
gas
power generation plant was considered. The explanation of the
respondents was that none of the existing sources of renewable
power
would be suitable for the specific role of providing emergency power
generation.
[9]
Eskom acknowledged the need to transition the country from
fossil-fuel energy generation to renewable
energy-based power
sources. It contended however, that this does not mean that every
application for environmental authorisation
for a new power plant
must be for a renewable power source. In this case, renewable energy
sources were not considered because
what was needed was the provision
of emergency power, for short periods of time, as and when required.
Renewable power sources
are not suitable for this function, Eskom
argued. In addition, the plan is that as coal is phased out as the
country’s main
energy source, natural gas will act as a ‘bridge
before renewable alternatives are fully implemented’. A hasty
transfer
to renewables might have ‘cataclysmic’
consequences.
[10] The high
court was satisfied with this explanation, particularly because of
the imposition of two conditions to
the environmental authorisation,
being the submission of proof that natural gas is available to supply
the plant, and confirmation
that Transnet assumed responsibility for
the construction of a liquid gas facility and the gas pipeline from
the Richards Bay Port
to the plant prior to the start of
construction. In rejecting the ground of review that renewable energy
sources should have been
considered, the high court found that Eskom
was entitled to submit its application to the Department without
consideration of alternative
energy generation sources.
[11] The high
court also rejected the argument by the appellants that the upstream
effects of the extraction of gas
in Mozambique (or any other
location), its shipping on international waters and the gas pipeline
that would run through Mozambique,
had to be considered under NEMA.
It found that such a broad consideration of the upstream effects on
foreign land and water would
‘create an almost impossible
situation’ because the location of the source of the gas had
not yet been ascertained.
The court was satisfied with the
explanation by the respondents that the assessment of the anticipated
greenhouse effects of the
gas facility at the Richards Bay Port, and
the environmental authorisation in relation to transportation of the
gas to the plant,
will be the subject of a separate environmental
authorisation application. It also accepted that the cumulative
effects of the
different components of the development would be
considered when the environmental authorisation for the construction
of the pipeline
from the Richards Bay Port is sought. The court found
that it was reasonable that the environmental authorisations for the
other
components be sought at a later stage of the power plant
development.
[12] With
regard to the failure to assess the environmental and social costs of
the emissions, the high court found
that the holistic view approach
adopted by the Department, based on all the reports that had been
submitted to it, was adequate
because the parties were in agreement
that there is no universally acceptable method of quantifying the
cost of greenhouse gas
emissions. For the same reason, the court
rejected the argument by the appellant that the Minister had failed
to consider the cumulative
impact on the air quality of the emissions
from the power plant, together with the emissions from the nearby
Mondi Paper Mill plant,
the 32 Hillside Aluminium Smelter, and a
400MW gas power plant. It further found that Chapter 9 of the
environmental impact report
adequately dealt with potential
cumulative impacts emanating from these entities.
[13]
In respect of the failure to consider the adequacy of the climate
change resilience of the power plant, the high
court rejected as
speculative the evidence emanating from a climate report which
anticipated that seawater might have to be used
for cooling the plant
to mitigate the warming effect of climate change. The court also
found that the respondents’ complaint,
that no meaningful
obligations were placed on Eskom, ignored the conditions attached to
the proposed wetlands offset plan
[10]
and the obligations imposed on Eskom as the holder of the
authorisation under s 24N(7)(
a
)
and (
d
)
of NEMA.
[11]
[14] During
September 2020 (prior to the dismissal of the appellants’
internal appeal against the environmental
authorisation), the
Minister of Mineral Resources and Energy published a Determination in
terms of s 34 of the Electricity Regulation
Act 4 of 2006 (the
Electricity Regulation Act) to facilitate implementation of the 2019
integrated resource plan by allowing provision
by independent power
producers of new 3000MW power generation from gas. In the review
application, the respondents argued that
in approving the
environmental authorisation, the Minister gave no consideration to
the independent power producers allocation
that had been made in the
Determination. The high court found that this argument intruded on
the Minister’s policy formulation
prerogative.
[15] With
regard to the public participation, even though the court
acknowledged the shortcomings in the process undertaken,
it rejected
the review ground that the process was fatally deficient. The court
considered that all required reports had been submitted
to the
Department and conditions were attached to the environmental
authorisation. As such it could not be said that there was
no
rational basis between the material available to the Minister and her
conclusion.
[16] In
considering the appropriate remedy, the court reasoned that the
environmental authorisation was the first in
a chain of environmental
authorisations that will be required in relation to the power plant
development. Further environmental
authorisation applications,
including the one relating to the construction of the gas pipeline
from the port terminal to the power
plant, would also be subject to
public participation processes. Therefore, setting the environmental
authorisation aside would
not be in the interests of the parties and
the general members of the public.
[17] The high
court then granted a ‘just and equitable’ order that
would, in its view, ensure public participation
in all ‘further,
ancillary, and/or linked’ applications for environmental
authorisations relating to the construction
and operation of the
power plant, to ensure public participation in further stages of
construction and operation. It dismissed
the review application and
ordered that the respondents publish a copy of the environmental
authorisation and conditions written
in isiZulu in at least two
newspapers circulating in Richards Bay and ensure that all subsequent
linked and ancillary applications
for environmental authorisations
pertaining to the power plant and all written notices be similarly
published in isiZulu in the
same manner as the environmental
authorisation.
On appeal
[18]
In this appeal the appellants persist only with the following five of
their original grounds of appeal: (1) the
inadequate assessment of
the power plant’s climate change impacts, (2) the need or
desirability for the power plant, (3)
a consideration of alternatives
to the power plant, (4) the cumulative impacts of the power plant and
(5) the inadequate public
participation process. The appellants
contend that these factors should have been central to the
consideration of Eskom’s
environmental authorisation
application. A finding of failure to sufficiently consider any one or
more of them must result in a
review and setting aside of the
environmental authorisation in terms of s 6(2)(
e
)(iii)
of the Promotion of Administrative Justice Act 3 of 2000 (PAJA).
[12]
The appellants also rely on ss 11, 24 and 27 of the Constitution and
NEMA.
[13]
[19]
The respondents argue that the polycentric nature of the
environmental authorisation decisions does not permit
of intervention
by the courts, and that interference by this Court would undermine
the principle of separation of powers. They
contend that the impugned
decisions align with the purpose of s 85 of the Constitution,
[14]
the National Energy Act 34 of 2008 (the
National Energy Act) and
the
Electricity Regulation Act, to ensure that energy is available in
sustainable quantities and at affordable prices to support
economic
growth and poverty alleviation. What is more, they contend, is that
when the 2010 integrated resource plan and its later
versions (2013
and 2019) were drafted, energy planning, increased generation,
contingency energy supply, and adequate investment
and access to
energy infrastructure, were all considered. Besides that, the socio -
economic advantages of establishing a large
gas-to-power industry
which will increase job creation, industrial development, and the
potential to substitute diesel with cheaper
liquid natural gas, are
unquestionable.
[20]
Eskom aligns itself with the Minister’s arguments, emphasising
that legislation and policies have been developed
for the
implementation of the energy mix strategy adopted by the government.
It stresses that both gas and renewable energy form
part of that
energy mix which is provided for in the integrated resource plan and
that, with regard to climate change, in the 2010
integrated resource
plan the government adopted a ‘peak-plateau-decline’
strategy.
[15]
Further key
considerations that were taken into account when formulating the
integrated resource plan
[16]
included electricity demand and the underlying relationship with
economic growth, new developments in technology and fuel options,
scenarios for carbon mitigation strategies and the consequent impacts
on electricity supply beyond 2023, and the affordability
of
electricity beyond 2020.
[21]
The respondents assert that the integrated resource plan directs that
gas is an obvious first choice for the short-term
supply and demand
site intervention because it will minimise the risk of load
shedding.
[17]
In addition, the
attendant capital costs for a combined cycle gas power plant are low
and it can be constructed faster.
Discussion
Is the Minister’s
decision reviewable?
[22] The
appellants accept and do not challenge the validity of the policy
framework relied on by the respondents. They
insist however that the
national environmental framework provided under NEMA is applicable to
all spheres of government. In other
words, the implementation of all
environmental management, including other environmental statutes and
regulations, must be effected
through the principles and procedures
provided under NEMA.
[23]
Indeed, NEMA establishes a comprehensive environmental management
framework through which all laws that may significantly
affect the
environment must be interpreted.
It guides
the implementation of all environmental laws and policies, including
the
National Energy Act, the
Electricity Regulation Act and the IRP.
It is the overarching legislation by reference to which all other
environmental legislation,
policy formation and administrative
decision-making that affects the environment should be informed. It
is the lens through which
administrative and executive actions that
manage the environment must be viewed. This is made plain in s 2 of
NEMA in terms of
which the fundamental principles applicable to the
interpretation and implementation of all environmental laws
throughout the country
are established. The section provides:
‘
2
Principles
(1)
The principles set out in this section shall
apply throughout the Republic to the actions of all organs of state
that may significantly
affect the environment
and
-
(a)
shall apply alongside all other appropriate and
relevant considerations
, including the
State’s responsibility to respect, protect, promote and fulfil
the social and economic rights in Chapter 2
of the Constitution and
in particular the basic needs of categories of persons disadvantaged
by unfair discrimination;
(b)
serve as the general framework within which
environmental management and implementation plans must be formulated;
(c)
Serve as guidelines by reference to which
any
organ of state
must exercise any
function when taking any decision in terms of this Act or any
statutory provision concerning the protection of
the environment;
(d)
Serve as principles by reference to which a
conciliator appointed under this Act must make recommendations; and
(e)
Guide the interpretation, administration and
implementation of this Act,
and any
other law concerned with the protection of the environment
.
’
(emphasis supplied).
[24]
It is thus evident that the principles set out in s 2 of NEMA apply
to all environmental decision making by all
organs of state, whether
the decision is made by a Member of the Executive, or consists of the
administrative implementation of
legislation.
The
reliance on the integrated resource plan was correctly rejected in
Earthlife
Africa, Johannesburg v Minister of Environmental Affairs and Others,
[18]
because macro-level
planning does not determine the environmental impacts of a particular
power plant.
The
purpose of the environmental management regime mandated in NEMA is to
ensure that social, economic and environmental factors
are integrated
into all government environmental decision making, including those
relevant to a particular project that may significantly
affect the
environment. In fact, even when formulating the integrated resource
plan and the Determination under the Electricity
Regulation Act, the
Minister was obliged to observe the approach ordered under NEMA.
Consequently, the ‘separation of powers’
argument is not
sustainable in this instance. NEMA specifies the approach that the
Minister must adopt when considering environmental
authorisation
applications.
[25]
The
appeal to the Minister against the Chief Director’s decision
granting the environmental authorisation is provided for
in s 43.
However, the parameters of the power exercised by the Chief Director,
and on appeal by the Minister, are set out in
s
24. Section 24O(1
)(a)
and
(
b
)
is explicit in prescribing the criteria to be considered by the
Minister responsible for the environment, the Minister responsible
for mineral resources, or an MEC when considering an environmental
authorisation application. The section emphasises that all of
these
office bearers must comply with the provisions of NEMA.
[19]
It
provides:
‘
24O
Criteria to be taken into account by competent authorities when
considering applications
(1)
If the Minister, the Minister responsible for
mineral resources, an MEC or identified competent authority considers
an application
for an environmental authorisation, the Minister,
Minister responsible for mineral resources, or MEC must-
(a)
Comply with this Act;
(b)
take into account all relevant factors, which may
include-
(i)
Any pollution, environmental impacts or
environmental degradation likely to be caused if the application is
approved or refused.
(ii)
Measures that may be taken-
(aa)
to protect the environment from harm as
a result of the activity which is the subject of the application; and
(bb)
to prevent, control, abate or mitigate
any pollution, substantially detrimental environmental impacts or
environmental degradation;
(iii)
the ability of the applicant to implement
mitigation measures and to comply with any conditions subject to
which the applicant may
be granted;
(iii)
the ability of the applicant to comply with the prescribed financial
provision;
(iv)
where appropriate, any feasible and reasonable
alternatives to the activity which is the subject of the application
and any feasible
and reasonable modifications or changes to the
activity that may minimize harm to the environment’.
[26]
The
respondents argued that the use of ‘may’ in s
24O(1)
(b)
means that the Minister has a discretion in relation
to consideration of the factors listed under this section. Such
interpretation
is unsustainable within the context of NEMA. First,
s 24O(1) requires compliance with the Act (NEMA). Hence the use
of the
word ‘must’ in s 24O(1), and the clear obligation
in s 24O(1)(a) to comply with NEMA. Second, s 24O(1)(
b)
provides that the functionaries identified in the section must take
into account all relevant factors. The words ‘which may
include’ in the section are clearly intended to accommodate
instances in which the factors listed in s 24O(1)
(b)
(i) to
(viii) may not be applicable. The use of the word ‘may’
does not render the taking into account of the listed
factors
elective, if these factors are relevant to the authorisation sought.
The controlling language is to be found in the use
of the word ‘must’
in the introductory text of s 24O(1). Third, the application of the
principles set out under s 2
in relation to all environmental
management is required. This is evident from the language used
throughout the section, and in
particular s 2(1
)(b)(c)
and
(e),
as also s 2(2). Fourth, s 24
(a) and (b)
sets
out in peremptory terms the procedures that must be followed with
regard to investigating, assessing and communicating the
potential
consequences or impacts of activities on the environment.
[27]
Section 43, read with ss 24O(1)
(b)
and
24(4) of NEMA define the parameters of the power exercised by the
Minister when considering appeals in relation to environmental
authorisation decisions.
[20]
Section 43(6) gives the Minister wide remedial powers to exercise on
appeal. This indicates that the scope of the appeal is to
determine
whether the authorisation was correct, and if not, whether any
authorisation should be permitted, and then under what
conditions. In
sum, the appeal requires the Minister to examine whether the
authorisation complies with NEMA. Since NEMA is formulated
with
detailed provisions as to how an authorisation decision is to be
made, an appeal to the Minister may invoke grounds of appeal
that
reference what NEMA requires in order to come to a compliant
decision. And the Minister in deciding the appeal must consider
whether the authorisation is in conformity with NEMA. The Minister’s
powers on appeal are thus wide in determining whether
the
authorisation was correctly given, and if not, what authorisation is
warranted. But this appellate power is framed by the obligatory
scheme that NEMA sets out. The decision as to whether to grant an
authorisation under NEMA is not to be likened to an open-ended
form
of polycentric executive policy formation, precisely because of the
density of specification with which NEMA sets out how
an
authorisation is to be given. It follows that both the original
authorisation given by the Chief Director, as also the decision
of
the Minister on appeal, constitute administrative action that may be
reviewed on the basis of their conformity with NEMA.
Inadequate public
participation
[28] Public
participation in environmental decision making is rooted in s 24 of
the Constitution, which provides for
the right to an environment that
is not harmful and a corresponding obligation on the state to protect
and fulfil that right. Here,
we are concerned with the procedural
obligation on Eskom to enable public participation in environmental
decision-making through
meaningful and effective participation of
people in an inclusive manner. Public participation is pivotal to the
fulfilment of the
right to an environment that is not harmful to the
health and well-being. To be effective, public consultation must be
conducted
in good faith, through culturally appropriate measures and
procedures. Through this process, parties that are affected or likely
to be affected by the project to which an environmental impact
assessment relates, are provided with an opportunity to make input
with regard to the proposed project.
[29]
In
Doctors
for Life International v Speaker of the National Assembly
[21]
the
Constitutional Court described the nature and content of the right to
public participation as an ‘open-textured programmatic
right’
which is flexible and open to experimental reformulation and which
changes in the light of ongoing national experiences.
[22]
This
means that flexibility in a public participation process is essential
to achieving meaningful consultation.
[30]
The procedures to investigate, assess and communicate the potential
consequences of listed activities on the environment
are regulated
under s 24(4) of NEMA. In terms of s 24(4)
(a)
(v),
public information and participation procedures must provide all
interested and affected parties with a reasonable opportunity
to
participate in environmental impact investigation processes. The
section provides that
‘
[p]rocedures
for investigation of the potential consequences or impacts of
activities on the environment must ensure, with respect
to every
application for an environmental authorisation, public information
and participation procedures which provide all interested
and
affected parties, including all organs of state in all spheres of
government that they have jurisdiction over any aspect of
the
activity, with a reasonable opportunity to participate in those
information and participation procedures.’
[31]
For clarity, the EIA Regulations promulgated under NEMA
[23]
require that after submission of an environmental authorisation
application, public participation must be undertaken for either
a
basic assessment or a scoping and environmental impact report. In
addition, the Minister published a Guideline on Public Participation
in terms of s 24J of NEMA
[24]
to assist potential applicants, interested and affected parties and
environmental assessment practitioners to understand what their
role
is, or what is expected of them in relation to the environmental
impact assessment process. The Guideline highlights the importance
of
public participation. To this extent public participation is the only
process in the environmental authorisations mechanism
from which
there is no exemption.
[32]
The Guideline also makes provision for instances where the minimum
requirements set out in the EIA regulations
for public participation
may not be adequate for all applications, given the different
projects to which authorisation applications
relate.
[25]
It suggests three factors to be considered: (1) the scale of the
anticipated impacts of the proposed project, (2) the sensitivity
of
the affected environment and the degree of concern about the impacts
of the proposed project on it, and (3) the characteristics
(attributes) of the affected parties. It provides that, depending on
the constitution of the communities concerned, use must be
made of,
among different modes of communication, local radio stations in the
local language at an appropriate time, participatory
rural appraisals
and approaches to community structures, committees and leaders.
[33] Under
the Public Participation Guideline, the environmental assessment
practitioner must give notice to all interested
and affected parties.
In paragraph 4 the Guideline prescribes the following methods of
notification:
‘
[a]
fixing a notice board at a place noticeable to the public at the
boundary or on the fence
of the site where the listed activity is to
be undertaken
as
well as any alternative sites
being
considered;
[b]
Giving written notice to [various persons specified under items (i)
to (vii) including
the owners and occupiers of the land adjacent to
the site] of any alternative site to which the activity is proposed
to be undertaken,
and the owners and occupiers of the land where the
site on which the activity is to be undertaken or any alternative
site where
the activity is to be undertaken];
[c]
placing the advertisement in:
(i) one local
newspaper (this should be an appropriate newspaper in terms of
accessibility
and written in a language that the interested and
affected parties will understand)
; or
(ii) any official
Gazette that is published specifically for the purpose of providing
public notice of applications or other
submissions made in terms of
these regulations; and
(i)
placing an advertisement in at least one
provincial newspaper or national newspaper if the activity has or may
have an impact that
extends beyond the boundaries of the metropolitan
or local municipality, and an advertisement is not being placed in
any official
Gazette referred to in (c) (ii) above.’
(Emphasis supplied)
[34] The
person conducting the public participation is vested with discretion
to ensure that the language used allows
for meaningful participation.
Potential and registered interested and affected parties must be
provided with meaningful opportunity
to comment on the application.
The EIA regulations prescribe a detailed notification procedure which
includes a requirement that
an effort must be made to reach
illiterate, disabled, and any other disadvantaged persons. It is the
obligation of state organs
such as the Minister in this case, when
making decisions pertaining to the protection of the environment, to
ensure that the requirements
of public participation have been truly
observed. In sum, NEMA together with the EIA Regulations and the
Public Participation Guideline
provide a comprehensive structure for
adequately communicating with affected and interested parties for
purposes of fulfilling
the right to meaningful participation.
[35] In this
case, however, the availability of the environmental reports for
public comment was advertised in ‘The
Mercury’,
‘Rapport’, the ‘Sunday Times’, and the
‘Zululand Observer’, all English and
Afrikaans
newspapers. No advertisements were placed in local isiZulu
newspapers. This, despite it having been stated in the final
environmental report, that the most commonly spoken language in the
area of the proposed project, by 79%, is isiZulu. The public
participation information notices placed on the notice boards were
written in English with no translation. No information was published
on isiZulu, or other radio stations. No consultation was held with
local communities or their leaders. There is no evidence of
consultation with vulnerable people or even an investigation of their
existence in the relevant area.
[36] In
relation to these deficiencies, the Minister explains that the
defects in the public participation process were
never brought to her
attention. Had this been done, she would have remitted the
application to the Directorate of the Department
with instructions to
comply with the relevant requirements. But she also asserts,
seemingly with approval, that the environmental
assessment
practitioner decided in her discretion to use English for the public
participation process. In addition, no interested
or affected party
indicated that they were disadvantaged or requested that a different
language be used. According to the Minister,
the public participation
guideline only requires that where environmental reporting is done in
one of the three regional languages,
executive summaries be made
available in the other two languages. In any event, the Minister
contends, the municipality conducted
a public participation process
before publishing its integrated development plan pursuant to which
the project site was reserved
for a gas power plant.
[37]
In
Bengwenyama
Minerals (Pty) Ltd v Genorah Resources (Pty) Ltd
[26]
the
Constitutional Court held that public consultation as an integral
part of the fairness process because a decision cannot be
fair if the
administrator did not have full regard to precisely what happened
during the consultation process in order to determine
whether the
consultation was sufficient to render the grant of the environmental
authorisation application procedurally fair. In
Sustaining
the Wildcoast NPC v Minister of Mineral Resources and Energy
[27]
the
Court held that consultation with the monarch or traditional leader
was not sufficient. The community had to be consulted as
such.
[38] The
Minister’s responses ignore the provisions of NEMA. Clearly,
they are inconsistent with the national
principles provided in s 2
and it is evident that the obligations created in that Act were not
considered when the decisions were
made. The ground rule in s 2(2)
that environmental management must place people and their needs at
the forefront of concern,
and serve their physical, psychological,
developmental, cultural and social interests equitably was not
followed.
[39] Eskom’s
responses are equally unhelpful. Eskom responds that a full and
proper participation process was
held because all interested and
affected parties were advised that the EIA report was made available
for review for a period of
30 days, which was extended for a further
month, and that the revised report was made available for more or
less the same period.
However, the process could not be adequate
where the crucial requirement of meaningful participation was not
substantially satisfied.
[40] The
Minister’s reference to public participation for purposes of
the municipal integrated development plan
is misguided. A public
participation process for one purpose, the determination of the power
plant site, cannot serve as compliance
with the prerequisites for a
different unrelated purpose, the consideration of the environmental
impact assessment report. In this
case, the purported public
participation process fell short of the purpose for which it was
created. A large portion of the public
was deprived of the right to
participate in and influence a decision that relates to their
fundamental right.
[41] For this
reason alone, the environmental authorisation decisions must be
reviewed and set aside. The authorisation
granted by the Chief
Director was thus vitiated by reviewable error by reason of the
failure of the public participation required
by NEMA. The failure by
the Minister, on appeal, to correct that error renders the Minister’s
decision subject to the same
legal conclusion. This ground of review
is thus sustained and renders the authorisation subject to the
remedial remit of a court
on review.
[42] However,
it is important that this Court also considers the other issues
raised in this appeal. Clearly, the Minister’s
attention was
not drawn to the provisions of NEMA when considering this appeal.
Neither was the Chief Director’s attention.
There may be
similar matters requiring their attention. I therefore proceed to
deal with the rest of the issues raised in this
appeal.
Inadequate assessment
of the power plant’s climate change impacts, its cumulative
impacts, and its need and desirability.
The Climate Crisis and
climate change impacts
[43] The
final EIA report reveals that when the plant is burning gas the
resultant Green House Gas emissions (GHGs)
will be comparable to 0.37
tonnes of carbon dioxide (CO2) per Megawatt hour (MWh) of electricity
generated. The plant will require
2000-5000m3 of water per day to
generate steam used to drive the turbines. And its design is such
that it will be able to generate
electricity for ‘base-load’,
‘mid-merit’ or ‘peaking’ capacities. The
respondents do not point
to any evidence of what the impacts of these
emissions and water usage will be on the environment.
[44] The
appellants argue that the Minister failed to consider the expert
evidence tendered in support of the contention
that generation of
electricity, using wind, solar and/or other sources of renewable
energy, is a reasonable and feasible alternative
to the construction
and operation of the power plant. They complain that the final
environmental report ignored this consideration
as an alternative to
gas power generation. Consequently, they argue, the decisions do not
comply with s 24O of NEMA and should
be reviewed and set aside.
[45] The
respondents place at the forefront their obligations under the
National Energy Act and
the IRP to ensure that energy resources are
available in sustainable quantities at affordable prices to support
economic growth
and poverty alleviation in South Africa. The Minister
explains that when the environmental authorisation application was
made,
the integrated resource plan provided for 7,5GW of electricity
to be generated by gas or diesel energy through either open cycle
gas
turbines or combined cycle gas turbines, such as the power plant
under consideration.
[46]
Despite these contestations however, it is not in dispute between the
parties that there is an urgent need to adhere
to conduct that
promotes the limitation of global warming. There is also no
protestation to the emphasis by the appellants on the
present day
climate crisis and the need to limit global warming to 1.5°C
within the next decade. In fact, this is what South
Africa has
committed to in various international agreements.
[28]
The country is party to numerous international environmental
agreements, including the United Nations Framework Convention on
Climate Change (UNFCCC) and its Paris Agreement.
[47]
South Africa has had to struggle with how best to meet its
responsibilities to its people and the international
world and
achieve its socio-economic and environmental goals. Almost two
decades ago, in
Fuel
Retailers Association of Southern Africa v Director General:
Environmental Management, Department of Agriculture Conservation
and
Environment, Mpumalanga Province, and Others
[29]
the Constitutional Court described this predicament as follows:
‘
The
need to protect the environment cannot be gainsaid. So too is the
need for social and economic development. How these two compelling
needs interact, their impact on decisions affecting the environment
and the obligations of environmental authorities in this regard,
are
important constitutional questions.
……
What is immediately
apparent from
s 24
[of the Constitution] is the explicit recognition
of the obligation to promote justifiable ‘economic and social
development’
Economic and social development is essential to
the well-being of human beings. This court has recognized that
socio-economic rights
that are set out in the Constitution are indeed
vital to the enjoyment of the enjoyment of other rights guaranteed in
the Constitution.
But development cannot subsist upon a deteriorating
environmental base. Unlimited development is detrimental to the
environment
and the destruction of the environment is detrimental to
development. Promotion of development requires the protection of the
environment.
Yet the environment cannot be protected if development
does not pay attention to the costs of environmental destruction. The
environment
and development are thus inexorably linked’.
[48]
In this context the principles laid down in NEMA provide crucial
guidance in the examination of the factors that
are relevant in
environmental decision-making processes. They must be practically
integrated into those processes by all organs
of state. In
Earthlife
Johannesburg
[30]
the
court
correctly
found that on a plain reading of s 24O(1) of NEMA the climate change
impacts of a listed activity must be considered when
assessing
applications for environmental authorisations. The court also
correctly found that the provisions of s 24O(1)
(b)
of NEMA
are peremptory and require that a competent authority considering an
application for an environmental authorisation for
a listed activity
must consider all relevant factors, including the factors listed in
that section.
[49]
With regard to the assessment of alternatives to the listed activity
in relation to which an environmental authorisation
is sought, s
24(4)
(a)
(iv) requires an investigation of potential
consequences for or impacts of the activity on the environment and an
assessment of
the significance of those potential consequences or
impacts. In addition to that, s 24(4)
(b)
(i) requires that an
investigation be conducted by an environmental assessment
practitioner into the potential consequences of alternatives
to the
listed activity on the environment and an assessment must be done on
the significance of those potential consequences or
impacts,
including the option of not implementing the activity.
[50]
EIA Regulation 18 also refers to the criteria to be considered by
competent authorities when considering environmental
applications.
[31]
It provides that the
competent authority ‘must have regard to s 24O and 24(4) of the
Act, the need for and desirability of
the undertaking of the proposed
activity, the requirements of the Regulations, and any protocol or
minimum information requirements
relevant to the application as
identified and gazetted by the Minister in a government notice or any
relevant guideline published
in terms of s 24J of the Act.’
[51]
Section 23(2)
(b)
of NEMA provides that one of the objectives
of integrated environmental management is to identify, predict and
evaluate the actual
and potential impacts of an activity as well as
the risk consequences, alternatives and options for mitigation. The
respondents’
responses demonstrate that their attention was not
directed at compliance with these imperatives. The focus was on
implementing
the integrated resources plan.
[52]
The integrated resource plan is the country’s long-term energy
policy blueprint. The integrated resource
plan, in essence, predicts
future energy demand and outlines how that demand will be met –
through a balanced mix of generation
technologies. It is a ‘living
plan’ that is subjected to periodical updates and coordination
with other policies to
fulfil the need to plan ahead and ensure the
sustainable provision of electricity. NEMA, on the other hand,
requires evaluation
of the potential environmental impacts of each
listed activity that is to occur at a particular point in time.
[53]
The responses by the Chief Director and the Minister that
there is no requirement under the EIA Regulations to assess the
impacts
of renewable power is incorrect. The regulations do not only
allow an assessment of the ‘preferred alternative and the no-go
alternative,’ as they contend. They mandate an assessment of
reasonable and feasible alternatives to a proposed project,
including
location, design, technology and the ‘no-go option’. The
preferred alternative must be the final choice after
comparing the
social, environmental, technical, and economic impacts of all the
considered options. Importantly, sustainable development
remains the
goal.
[54]
Consequently, the high court’s conclusion that the Minister, in
rejecting the appellants’ appeal, had
a wide discretion to make
a decision based only on policy considerations or based on the
integrated resource plan cannot be upheld.
Similarly, the conclusion
that environmental authorisations are ‘not the exclusive domain
of renewable energy’ and
that the ‘specific exigencies’
for the combined cycle gas power plant were properly considered, is
erroneous.
Failure
to consider the cumulative effect of the listed activities
[55]
Section 24(
2(a)
of NEMA requires a consideration of impacts
that may become significant when combined with other existing
potential activities.
An environmental authorisation is required in
respect of a listed activity rather than a development. However, in
terms of ss 24(1),
24(2)
(a)
and the EIA Regulations, if other
components of the development also include listed activities, the
environmental authorisation
application must include all listed
activities forming part of the overall development proposal. The
comprehensive development
context is important for a complete
assessment of the combined impacts of the listed activities in a
combined development. The
assessment considers the potential impacts
of all the activities, including cumulative impacts.
[56]
Under the EIA Regulations, ‘cumulative impact’ is defined
as including the past, current, and reasonably
foreseeable future
impacts of an activity, considered together with the impacts of
associated and similar activities. This means
that, when assessing
the impact of a listed activity, the competent authority must also
consider how the environmental impacts
of the listed activity under
consideration, when combined with impacts of other similar
activities, could become significant. That
must be so, particularly
where such other similar or associated activities relate to the same
development. Appendix 3 to the EIA
Regulations also requires an
evaluation of how the impacts of a proposed project, when added to
similar existing and foreseeable
developments, can lead to
significant environmental changes that would not be apparent from the
consideration of the project in
isolation.
[57]
The argument that the Minister failed to consider the cumulative
effect of the extraction and transportation of
the gas must be
upheld. It is evident that the respondents’ persistence in the
view that the environmental impacts of the
pipeline to the power
plant only become relevant at a later stage is incorrect.
[58]
In light of the conclusion on the interpretation of 24(2)
(a)
–
the requirement to consider the cumulative impacts of a project,
something must be said about the need for environmental
authorisation
in relation to the sourcing of the gas. The final EIA Report records
that Mozambique has sufficient natural gas to
enable its
transportation by a pipeline to South Africa. Eskom will purchase
liquid natural gas from potential suppliers once the
connection to
Richards Bay is completed. When the current environmental
authorisation was approved environmental studies were underway
in
preparation for an application for the environmental authorisation
for the pipeline that will transport the gas from the Richards
Bay
Port Terminal to the power plant. The greenhouse gas emissions
associated with the extraction and transportation of the gas
from the
source to Richards Bay and to the power plant were not assessed or
indicated in the final EIA report.
[59]
The respondents contend that South African authorities and courts
have no jurisdiction over the assessment of the
environmental impacts
of gas extraction and transportation outside the South African
territory. The extra-territorial consideration
of environmental
impacts is a matter of considerable complexity. There may well be
circumstances in which the authorisation of
an activity under NEMA
requires consideration of the sourcing inputs from abroad that may
have harmful environmental impacts in
South Africa. So too an
activity undertaken in South Africa may have harmful impacts outside
the country that warrant consideration.
Whether an activity requires
an environmental authorisation and gives rise to activities that
occur abroad and have impacts abroad
that require consideration under
NEMA is a matter that we do not need to determine in this appeal. It
is, in any event, not certain
where the gas will be sourced in this
instance.
The
failure to consider need and desirability
[60]
With regard to need and desirability, Eskom’s response is that
the scoping report and the final environmental
assessment report
highlighted the need and desirability of the power plant and
concluded that: (1) the plant would ensure that
the supply and demand
in the country is met and would thus enable economic and social
growth; (2) it will reduce transmission losses
because of its close
proximity to Richards Bay; (3) it will ‘provide flexible
generation solution where renewable energy
fuel resources [are] not
available’; and (4) the resultant carbon emissions and water
usage will amount to half of the coal
emissions. This argument is
again based on the integrated resource plan.
[61]
Apart the provisions in NEMA which have already been referred to in
this judgment the comprehensive Guideline on
Need and Desirability
issued by the Minister in 2017 highlights that: ‘[i]t is
essential that the national policies and strategies
support the
growth of the economy. It is also essential that these policies take
cognisance of strategic concerns such as climate
change, food
security, as well as sustainability in supply of natural resources
and the status of our ecosystem services’.
The Guideline
re-states the factors that must be considered under s 24(4) of NEMA.
The Minister and Eskom say nothing about these
factors.
[62]
The Determination which the Minister relies on, was published by the
Minister of Mineral Resources and Energy in
terms of s 34 of the
Energy Regulation Act 4 of 2006 to cater for the implementation of
the 2019 integrated resource plan. It provided
for 3000MW of new
power generation from gas by independent power producers.
[63]
The appellants argue that when granting the environmental
authorisation to Eskom the Minister failed to consider
that 3000MW
electricity generation capacity had already been allocated to
independent power producers in terms of the Determination.
They
contend that this was a relevant factor in the need and desirability
determination process which the Minister ignored when
granting the
authorisation. In the high court the respondents offered no response
to this argument. The high court found that the
allocation of
generation capacity to IPPs was a policy decision, and the
authorisation was not granted on the basis that Eskom
was obliged to
construct the power plant.
[64]
For context, s 34 of the Electricity Regulation Act provides:
’
34.
Additional electricity, new generation capacity and electricity
transmission infrastructure,
-
(1) The Minister may, in the event of the failure of a market, or in
the event of an emergency, or for the purpose of ensuring
security of
energy supply in the national interest, after consultation with the
Regulator and the Minister of Finance, by notice
in the
Gazette,
make a
determination-
(a)
that additional electricity or new generation capacity is needed to
ensure the optimal supply of electricity;
(b)
that new electricity transmission infrastructure is needed to ensure
the optimal supply of electricity;
(c)
determine that electricity thus produced may only be sold to the
persons in the manner set out in such notice.
[65]
The Determination provided that electricity provided through the new
generation capacity would constitute IPP procurement
programmes as
contemplated in the Regulations. The procurement programmes would aim
to connect to the grid for the new generation
as soon as reasonably
possible in line with a specified timetable. The electricity would be
sold to Eskom.
[66]
It is apparent that when the Minister upheld the granting of the
environmental authorisation, the Determination
had already been made
specifying that the 3000MW new generation capacity would be procured
through tendering procedures that would
constitute the IPP
allocation. Indeed, this fact was a relevant consideration in the
need and desirability assessment but was not
taken into consideration
when upholding the environmental authorisation.
Remedy
[67]
As stated, the high court reasoned that the
environmental authorisation was the first in a chain of environmental
authorisations
that are required in relation to the power plant
development. For that reason, the defects in the public participation
process
would be corrected during the consideration of further
environmental authorisation process. Therefore, setting the
environmental
authorisation aside would not be in the interests of
the parties and general members of the public.
[68] The
multi-stage basis for the relief granted by the high court is
incorrect. In terms of NEMA an environmental
authorisation is
required for each listed activity (save that an applicant or
applicants may make a combined environmental authorisation
application). The majority of the residents in the Umhlathuze
Municipality were permanently deprived of participating in the
environmental
authorisation process for the power plant construction
and operation. The order of the high court entrenches the
deprivation. The
re-publication of the environmental authorisation
notices would merely confirm that the process is incomplete. An
appropriate remedy
should enable members of the public to participate
meaningfully in the process. Consequently, the order of the high
court cannot
stand.
[69] The high
court is not ordinarily permitted to substitute the Minister’s
decision with its own. Neither is
this Court. With regard to remedies
in proceedings for judicial review s 8(1) of PAJA makes provision for
the Court in proceedings
for judicial review in terms of s 6 (1) to
grant any order that is just and equitable, including orders setting
aside the administrative
action and remitting the matter for
reconsideration by the administrator, or, in exceptional cases,
substituting or varying the
administrative action. With regard to the
case before us, this means that once we determine, as we do, that the
Chief Director’s
and Minister’s decision should be
reviewed and set aside, we should remit the matter back to the Chief
Director for reconsideration.
[70]
However two of the factors recognised by the Constitutional Court in
Trencon
Construction (Pty) Limited v Industrial Development Corporation of
South Africa Limited and Another
[32]
as
exceptional and therefore constituting a proper basis for the
substitution of the decision under review by the court, are present
in this case. The first is that the conclusion that the Minister must
reach on reconsideration of the appeal is a forgone conclusion.
As
stated, the Chief Director did not consider the principles and
factors laid down in NEMA. Remitting the matter to the Minister
would
therefore be futile.
[33]
The
second is that this Court is in as good a position as the Minister to
make the decision because the appeal inquiry is an evaluation
of
whether there has been compliance with the law or statutory
provisions. Therefore, exceptional circumstances in this case permit
of substitution of the Minister’s decision. What order, then,
should this court grant?
[71] The
appellants seek an order that the two environmental authorisation be
reviewed and set aside, and that a declarator
be granted to the
effect that when reconsidering the application for environmental
authorisation (assuming it serves before them
again in the future)
the decision makers must ensure that: (1) their decisions are
consistent with the Bill of Rights and s 2 of
NEMA, (2) their
decisions are appropriate considering the social, economic, and
environmental impacts of the activity, (3) their
decisions consider
the full life-cycle of greenhouse gas emissions from the combustion
of any fuel used and the cumulative impacts
of those emissions with
other South African emissions, (4) the decision makers must consider
the extent to which the objective
of the activity could be achieved
using alternative means, including renewable energy resources, and
(5) they must consider the
constitutional rights contained in ss 11,
24 and 27 of the Constitution.
[72] The
declarator sought merely sets out the legal principles and the
obligations of the respondents in law. I have
made findings in the
judgment on these aspects. It is therefore not necessary to issue a
declarator.
[73] The
decision of the first respondent falls to be reviewed. The appeal
against the decision of the second respondent
to issue an
environmental authorisation for the proposed construction of the
Richards Bay Combined Cycle Power Plant which was
issued on 23
December 2019 under authorisation reference no 14/12/16/3/3/2/1123
should have been upheld by the first respondent
and that decision set
aside. In reviewing and setting aside the decision of the first
respondent I substitute for it an order that
the appeal against the
decision of the second respondent is upheld and the decision to issue
the environmental authorisation is
set aside. The decision
substituted for that of the first respondent does not remit the
matter to the second respondent. This is
inappropriate relief because
the flaws in the required process of public participation must be
remedied. This will necessitate
a fresh application by Eskom for
authorisation once the required public participation has taken place
and the fruits thereof have
been considered. The appropriate remedy
rather upholds the appeal that was made to the Minister, and sets
aside the authorisation
granted by the second respondent. The effect
of this order is that the authorisation is a nullity. Eskom is at
liberty to renew
its application for an authorisation once the
various requirements which had not been complied with, have been
attended to. A remission,
if it was to occur on the same facts as
served before the second respondent previously, will meet the same
fate and be senseless.
[74] The
order I grant is the following:
1.
The appeal is upheld with costs including the costs of two counsel
where employed;
2.
The order of the high court is set aside and replaced with the
following order:
‘
1.
The decision of the first respondent which was issued on 13 October
2020 under reference no LSA 191719,
to dismiss the applicants’
appeal against the decision of the second respondent is reviewed and
set aside and substituted
with the following:
‘‘
The
appeal against the decision of the Chief Director to issue an
environmental authorisation for the proposed construction of the
Richards Bay Combined Cycle Gas Power Plant which was issued on 23
December 2019 under authorisation reference no 14/12/16/3/3/2/1123
is
upheld and that decision is set aside;
2.
The respondents are ordered to pay the applicants’ costs
jointly and severally, one or more paying the other(s) to
be
absolved, including the costs of two counsel where employed.’’’
N
DAMBUZA
JUDGE
OF APPEAL
Appearances
For
the appellants:
A Gabriel SC with IA Learmonth
Instructed
by:
Cullinan & Associates Inc, Cape Town
Pieter
Skein Attorneys, Bloemfontein
For
the first & second respondents: MC Erasmus SC with M Vimbi
Instructed
by:
The State Attorney, Pretoria
The
State Attorney, Bloemfontein.
For
the third respondent:
J A Motepe SC
Instructed
by:
Renqe FY Incorporated, Pretoria
Kramer
Weimann Inc, Bloemfontein.
[1]
South Africa’s
State-owned public utility responsible for generating, transmitting
and distributing electricity to the country’s
population and
industry.
[2]
Mid-merit
power generation capacity is generation that is adjusted in line
with fluctuating demand in the national power grid.
In contrast,
baseload power generation is continuous generation.
[3]
A
South African State-owned company responsible for operating the
country’s ports, railways, and pipelines, forming a critical
part of the national freight to logistics chain.
[4]
Regulation
1 of the Environmental Impact Assessment Regulations, 2014 (EIA
Regulations) defines an environmental impact assessment
as ‘…a
systematic process of identifying, assessing and reporting
environmental impacts associated with an activity
and includes basic
assessment and S & IR [Scoping & Impact Reporting].’
[5]
As
required in terms of Regulations 21 to 24 of the EIA Regulations.
[6]
Regulation
3 of the Environmental Impact assessment Regulations refers to
listed activities in appendix 1 to the EIR Regulations.
[7]
A
competent authority is defined in s 1 of NEMA as follows: ‘in
respect of listed activity or specified activity, means
the organ of
state charged by this Act with evaluating the environmental impact
of that activity and, where appropriate, with
granting or refusing
an environmental authorisation in respect of that activity.’
In terms of 42 (1)
(a)
of
NEMA the Minister may delegate his or her powers to the
Director-General, and MEC, the management authority of a protected
area, and any organ of state by agreement with that organ of state.
[8]
Under
EIA Regulation 21(1) ‘if Scoping & Environmental Impact
Reporting (S & EIR) must be applied to the application,
the
applicant must, within 44 days of receipt of the application by the
competent authority, submit to the competent authority
a scoping
report which has been subjected to a public participation process of
at least 30 days and which reflects incorporation
of comments
received, including any comments of the competent authority’.
[9]
From
the source of the natural gas to the power plant location.
[10]
The
proposed offset plan is subject to the following condition:
‘
35
The preliminary Wetland Offset Plan dated January 2018 (updated
February
2019 (with Option 2 indicated as the preferred option must
be finalised in consultation with City of Umhlathuze Local
Municipality
and Ezemvelo (KwaZulu Natal Wildlife) prior to
commencement.
36
The final Wetland Offset Plan must be submitted to the Department,
Chief Directorate: Integrated Environmental Authorisations for
written approval prior to commencement of the activity’.
[11]
These
sub-sections provide:
‘
The
holder and any person issued with an environmental authorisation-
(a)
must at all times give effect to the general
objectives of integrated environmental management laid down in
section 23;
(b)
…
(c)
…
(d)
Must monitor and audit compliance with the
requirements of the environmental management programme.’
[12]
Under
s 6(2) (
f
)(ii)
a court or tribunal has the power to judicially review an
administrative action if the action itself is not rationally
connected to the purpose for which it was taken, the purpose of the
empowering provision, the information before the administrator
and
reasons given for it by the administrator.
[13]
Section
24 of the Constitution provides: ‘
Environment
Everyone has the right –
(a)
to an environment that is not harmful to their
health or well-being; and
(b)
to
have the environment protected, for the benefit of present and
future generations, reasonable legislative and other measures
that-
(i)
prevent pollution and ecological degradation;
(ii) promote
conservation; and
(iii) secure
ecologically sustainable development and use of natural resources
while promoting justifiable economic and
social development.’
[14]
Section
85 of the Constitution provides: ‘
Executive
authority of the Republic
-
(1) The executive
authority of the Republic is vested in the President.
(2)
The
President exercises the executive authority, together with the other
members of the Cabinet, by-
(a)
implementing
national legislation except where the Constitution or an Act of
Parliament provides otherwise;
(b)
developing
and implementing national policy;
(c)
co-ordinating
the functions of state departments and administrations;
(d)
preparing
and initiating legislation; and
(e)
performing
any other executive function provided for in the Constitution or in
national legislation.’
[15]
The
IRP 2010-2030 Update Report para 6.2 states: ‘
The
peak-plateau-decline objective suggests that emissions would be
allowed to peak in 2025 (originally indicated at 550 million
tons
per annum for South Africa as a whole), then plateau for some period
before declining. In August 2011 the Department of
Environmental
Affairs published an explanatory note titled “Defining South
Africa's Peak, Plateau and Decline Greenhouse
Gas Emission
Trajectory" which indicated the range of expected carbon
dioxide emissions up to 2050. Under the PPD range,
South Africa's
upper limit is expected at 428 MT/a in 2050 and the lower limit at
212 MT/a, The Long-Term Mitigation Scenarios
(LTMS) (October 2007)
indicated that the electricity sector greenhouse gas contribution
was 45% in 2003. The IRP 2010 assumed
a 50% contribution, but this
was seen by some observers at the time as an indulgence. Assuming
the less indulgent 45% contribution,
the upper limit for the
electricity would be 193 MT/a in 2050 and the lower limit would be
95 MiT/a.’
[16]
With
reference to paragraph 3 the 2013 version of the IRP.
[17]
Load-shedding is a
method of load management by reducing or cutting off electricity
supply to different consumers or areas in
a controlled manner to
balance electricity demand with available resources. See: Nick
Barney; TechTarget and Informa; https://www.techtarget.com,
published 25 May 2023.
[18]
Earthlife Africa
Johannesburg v Minister of Environmental Affairs and Others
(65662/16)
[2017] ZAGPPHC 58;
[2017] 2 All SA 519
(GP) (8 March 2017)
para
95 (
Earthlife
Africa Johannesburg
).
[19]
Section
24O(1)
(a)
of
NEMA.
[20]
See
para 25 above.
[21]
Doctors
for Life International v Speaker of the National Assembly
[2006] ZACC 11
;
2006
(6) SA 416
para 96.
[22]
Steiner
‘Political Participation as a Human Right’ (1988)
1
Harvard
Human Rights Yearbook
77
at 134.
[23]
EIA
regulation 12.
[24]
See
Government Notice No 35769 dated 10 October 2012.
[25]
EIA
Regulations.
[26]
Bengwenyana
Minerals (Pty) Ltd v Genorah Resources (Pty) Ltd
[2010]
ZACC 26
;
2011
(4) SA 113 (CC); 2011 (3) BCLR 229 (CC).
[27]
Sustaining
the Wild Coast NPC v Minister of Mineral Resources and Energy
[2022]
1 All SA 796 (ECG); 2022 (2) SA 585 (ECG).
[28]
South
Africa is a Party to the United Nations Framework Convention on
Climate Change and its Kyoto Protocol. It signed and ratified
the
Paris Agreement in 2016, committing to limit warming to 1.5 °C.
In its 2021 Nationally Determined Contribution, it referred
to the
Talanoa Dialogue and the Intergovernmental Panel on Climate Change
Special Report on 1.5 °C. At the 26th Conference
of the Parties
in 2021, it entered into the Just Energy Transition Partnership with
international partners to support this commitment.
[29]
Fuel
Retailers Association of Southern Africa v Director General:
Environmental Management, Department of Agriculture Conservation
and
Environment, Mpumalanga Province, and
Others
[2007]
ZACC 13
;
2007 (10) BCLR 1059
(CC);
2007
(6) SA 4
(CC)
paras
41 to 44.
[30]
Earthlife
Africa, Johannesburg
para
79.
[31]
EIA
regulations 12 and 13(1).
[32]
Trencon Construction
(Pty) Limited v Industrial Development Corporation of South Africa
Limited and Another
[2015]
ZACC 22.
[33]
See
Trencon
paras
35 to 39.
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