It is anticipated that the implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM), which will take effect in 2026, will significantly affect the South African manufacturing sector, says industry body Manufacturing Circle.
The adverse effect can be attributed to, and is compounded by, the high carbon intensity of the country’s electricity production, mostly generated from coal and generally much higher than the carbon intensity of other exporting competitor countries.
Consequently, the CBAM Industry Working Group was formed to assist the industry in adjusting to these changes, Manufacturing Circle executive director Philippa Rodseth tells Engineering News.
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