The European Commission is reviewing the Carbon Border Adjustment Mechanism (CBAM) for a potential expansion in 2027. The review focuses on adding sectors like chemicals, ceramics, and glass, while also considering a broader application of indirect emissions from electricity consumption. This move puts significant pressure on exporters in regions with coal heavy power grids, such as South Africa. The goal is to prevent carbon leakage by ensuring imported goods face carbon costs similar to those paid by EU producers.
