CBAM Explained: Levelling the Playing Field and Tackling Carbon Leakage
Gaylor Montmasson-Clair, Senior Economist at Trade & Industrial Policy Strategies
Summary
Gaylor Montmasson-Clair outlines the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union, which acts as a carbon tax at the EU border.
This mechanism requires goods exported from South Africa and other countries that haven't faced a carbon price to be taxed similarly to European companies, thereby levelling the playing field. CBAM is part of a broader trend, with other countries like the UK, Canada, and the U.S. considering similar measures.
Additionally, CBAM is just one of many EU regulations impacting economies in the Global South, including policies related to agriculture and circular economy initiatives. The CBAM transition period began in October 2023 and will last until the end of 2025, during which companies can prepare for carbon pricing starting in 2026 and increasing until 2034.
For South Africa, the iron and steel and aluminium industries will face challenges in accessing the European market if they do not decarbonise or implement a domestic carbon price, highlighting the urgency for effective strategies to comply with CBAM and broader regulatory changes.
Join the Future Cities Africa Newsletter
Ask how you can collaborate with Future Cities Africa
Share this discussion
You might also be interested in some of our other discussions
Mobility as an Enabler or Disabler :: Inclusive Cities
Rehana Moosajee is the founder at The Barefoot Facilitator and a past Member of the Mayoral Committee of the City of Johannesburg.
Liveable Cities and How We Can Extend the Conversation
Bronwyn Williams is an Economist, Trend Analyst, Futurist and Partner at Flux Trends.
Financial Models and how Municipalities can Fund Smarter Cities :: Smart City
Steve Apps is a Smart City and Industry 4.0 technology expert. He’s past CTO of Huawei Southern Africa for government services. He was also executive for ecosystems and solutions at SqwidNet, rolling out the SIGFOX IoT network across South Africa.
Mayor's Vision for the Future of Overstrand Municipality
Ald Annelie Rabie is Executive Mayor of Overstrand Municipality.
CBAM Explained: Levelling the Playing Field and Tackling Carbon Leakage
Gaylor Montmasson-Clair, Senior Economist at Trade & Industrial Policy Strategies
Typical Architecture and Technological Layers of a Smart City :: Smart Cities
Vino Govender is Executive for Strategy, Mergers & Acquisitions and Innovation at Dark Fibre Africa.
Energy Strategy for Growth and Recovery at City of Cape Town
Kadri Nassiep is Executive Director for Energy at City of Cape Town.
Advice for Students to Stay Positive :: Built Environment
Kyra Rautenbach is Sustainability Manager at Attacq Ltd.
Biggest Challenge Africa Must Overcome :: Digital Divide
Marco Macagnano is the Smart Cities Leader at Deloitte Consulting.
Most Important Municipal Challenges Visualised by Technology
Presented by 1map in collaboration with Munsoft