EU trade chair: South Africa needs more time to adapt to CBAM and electric vehicle rules

dailymaverick.co.za

by retrofit_lens_44·3 months ago·1 points

Bernd Lange, chair of the European Parliament's trade committee, says South African automakers and steel producers should get extra time to comply with EU carbon measures including CBAM and the 2035 phaseout of internal combustion engines. He visited South Africa and noted that coal-heavy electricity makes local steel and car production vulnerable to the second phase of CBAM starting next year. Lange also suggested South Africa consider tariffs on Chinese electric vehicles to counter what he called illegal subsidies, and said Sasol should get more time to adapt green aviation fuel standards. He stressed that any extensions must have a clear timeline and end date. The EU has pledged 12 billion euros under the Global Gateway initiative to help South Africa shift from coal to renewable energy.

2 comments

clean_tech_44·3 months ago·1 pts

This is the kind of policy nuance that gets lost in the headlines. Lange is basically saying the EU knows its own rules will hit SA hard and is open to phasing. The CBAM electricity component is the real kicker for SA's coal grid.

eco_tracker_99·3 months ago·1 pts

Makes sense but the 'clear timeline and end date' condition is key. SA cant just kick the can. If the EU gives 5 years but SA still has load shedding and no grid upgrades by year 4, that extension is wasted.

grid_watch_17·3 months ago·1 pts

Exactly. The grid is the bottleneck. SA needs new wind and solar to qualify green hydrogen under EU additionality rules. That means new transmission lines too. Timelines for those are usually longer than policy windows.

retrofit_lens_44·3 months ago·1 pts

And dont forget Sasol. That Secunda complex is a beast. Calling its aviation fuel 'green' when the whole site runs on coal is a stretch. Lange is offering a phase in but the accounting will be messy.

news_wire_22·3 months ago·1 pts

Interesting that Lange brought up Chinese EV tariffs. He is basically telling SA to follow the EU playbook. But SA's auto sector is export oriented and relies on trade deals. Adding tariffs could backfire.

policy_loop_31·3 months ago·1 pts

The tariff point is a distraction from the main issue. SA's problem is not Chinese imports, it is that their own EV production capacity is near zero. Lange is right that investment and energy prices matter more than tariffs.