MARK BOSHOFF: How EU’s Carbon Border Adjustment Mechanism could reshape SA exports
A new mechanism implemented by the EU to curb carbon-intensive goods entering its market could place South African businesses and agricultural enterprises at a costly disadvantage. The EU is South Africa’s largest trading partner, accounting for over 20% of total trade, making this policy shift critical for local exporters to understand.
In April 2023, the EU enacted the Carbon Border Adjustment Mechanism (CBAM), a policy that aims to put a “fair price” on carbon emissions associated with the production of carbon-intensive goods imported into the EU. This move is designed to level the playing fields for EU companies that have been under pressure to reduce their carbon footprints at considerable expense against potentially cheaper, carbon-intensive imports from non-EU countries such as South Africa...
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