South Africa faces a critical choice between implementing domestic carbon pricing or losing revenue to the EU's Carbon Border Adjustment Mechanism. With a heavy reliance on coal and significant stranded asset exposure at Eskom, the shift toward a triple bottom line is an economic necessity rather than a luxury. This analysis explores how ESG frameworks allow capital to price climate risks and why mandatory disclosures under IFRS S1 and S2 are essential for emerging markets to attract cheaper capital and maintain export competitiveness.
