Western Cape's Most Vulnerable Sectors: Assessing the Impact of CBAM

The Western Cape Government discusses the sectors most affected by the Carbon Border Adjustment Mechanism (CBAM) regulations from the EU, which include iron, steel, aluminum, electricity, certain fertilisers, cement, and hydrogen.

The initial phase of CBAM focuses on heavy carbon users, as the EU aims to encourage these industries to report their decarbonisation efforts before imposing penalties. Leading up to the 2026 deadline, companies like Tesco are requiring their suppliers to disclose their carbon footprints and decarbonisation strategies, leading to a broader impact across various industries and value chains.

This demand for carbon certification is driving industries to accelerate their decarbonisation and reporting processes to maintain access to international markets and remain competitive.