South Africa risks being caught in a carbon vice
A new study has provided the first glimpse of how hard the EU’s carbon border taxes will hit the local industry. The effects will be dire, especially if the pricing momentum continues to spread globally
As the EU prepares to introduce onerous carbon border taxes on imports, a new study has estimated that not only would this raise the price of some key South African exports by up to a third — potentially pricing them out of the EU market — it could also displace exports from other “dirty” nations to Africa, raising competition in our own backyard.
South Africa is exposed because its carbon emissions are relatively high, especially when indirect emissions from the coal-powered national grid are included. In addition, our domestic carbon tax, which can be used to offset the EU’s pending carbon border tax, is relatively small...
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