South African exporters could face increased pressure to reduce the carbon intensity of their electricity consumption as the European Commission considers expanding its Carbon Border Adjustment Mechanism CBAM to additional sectors and reviewing the treatment of indirect emissions.
Speaking during a webinar hosted by EE Business Intelligence on May 28, European Commission Directorate-General for Taxation and Customs Union Head of Unit Vicente Hurtado Roa said the commission intends to review the CBAM regulation in 2027.
In particular, we will be looking at the possibilities of extending the CBAM to other basic sectors, Hurtado Roa said. Chemicals, ceramics and glass industries are all under consideration.
