South African President Cyril Ramaphosa signed a broad climate change act into law on Tuesday.

The new legislation sets emission caps for large polluters and requires adaptation plans from every town and city. Aimed at meeting South Africa’s commitments under the Paris Agreement, the new South African climate law will change how the continent approaches climate change. It marks a continued effort from African leaders to meet clean energy demands.

South Africa is one of the top 15 greenhouse gas emitters globally. This is largely due to its heavy reliance on coal, Reuters reports. The Climate Change Bill mandates each province and municipality assess climate change risks and develop response plans. High-emitting sectors like agriculture, transport, and industry will receive emission targets. Relevant ministers for these sectors will adopt measures for these goals.

The act also requires the environment minister to allocate carbon budgets to major greenhouse gas-emitting companies. This would limit their emissions over specified periods. The specific allocations are not set, but companies exceeding their budgets will likely face increased carbon taxes.

Brandon Abdinor from the Centre for Environmental Rights noted to Reuters that the act marks the first time South Africa’s climate response is codified into domestic law. This creates a framework for future actions. Harald Winkler, the climate change expert from the University of Cape Town, commented that the new mandatory carbon budgets should lead to significant emissions reductions from large companies. He noted the importance of transparency in annual reporting.

Experts say the bill is a shift towards a more aggressive stance on climate change and renewable energy by South Africa’s new government. Despite the nation’s heavy coal dependency, this legislation aims to set South Africa on a path towards more sustainable environmental practices.