South Africa faces significant economic pressure as the EU's Carbon Border Adjustment Mechanism (CBAM) begins to tax carbon intensive imports. Minister Parks Tau warns that the automotive and steel sectors risk losing global competitiveness if they do not rapidly transition to low carbon production methods. The government is currently developing roadmaps for green steel and industrial upgrading to avoid job losses and de industrialization. The shift focuses on integrating renewables, hydrogen, and circular economy practices into the industrial value chain to mitigate the cost of carbon premiums on exports.
