The European Union's Carbon Border Adjustment Mechanism (CBAM) is shifting from data collection to financial liability. While current impact is limited to a few sectors like steel and aluminum, the potential inclusion of indirect emissions from coal-fired electricity poses a strategic risk to South African exporters. South Africa's low domestic carbon tax means most of the financial burden will be collected by the EU rather than staying within the local economy. As the EU expands CBAM to include downstream manufactured goods, the carbon intensity of Eskom's grid becomes a direct hit to industrial competitiveness.
