PCC CBAM Webinar: Carbon Border Adjustment Mechanism - Strategic Pathways To Mitigate Adverse Impact

As countries accelerate their decarbonisation pathways, new climate-related trade measures are reshaping global markets. Among these, Border Carbon Adjustments (BCAs) have emerged as a key tool to level the playing field by imposing carbon costs on imported goods equivalent to those faced by domestic producers. The European Union’s Carbon Border Adjustment Mechanism (CBAM) is the most advanced example, with other jurisdictions considering similar policies.

For South Africa, a carbon-intensive economy deeply integrated into global value chains, BCAs present both risks and opportunities. Exporters of emissions-intensive goods such as steel, cement, and aluminium may face rising compliance costs and potential market access barriers, while the policy could also incentivise low-carbon investment, innovation, and green industrialisation.

This dialogue will unpack the design, purpose, and implications of BCAs for South Africa’s climate, trade, and development agenda. It will explore how BCAs interact with domestic carbon pricing, what they mean for trade competitiveness, and how South Africa can prepare its industries and workers for the coming shifts in global trade rules.

Key Themes

• Understanding the rationale and mechanics of Border Carbon Adjustments

• Assessing the implications for South Africa’s exports and industrial competitiveness

• Exploring the interplay between domestic carbon pricing and international measures

• Identifying pathways to green industrialisation and opportunities for trade diversification

• Considering how BCAs intersect with the Just Transition, jobs, and development priorities

Objectives

Through this session, the Presidential Climate Commission (PCC) aims to:

• Raise awareness among stakeholders about BCAs and their global evolution.

• Facilitate dialogue on how South Africa can mitigate risks while seizing opportunities.

• Support a shared understanding of the policy, trade, and equity dimensions of BCAs.

• Strengthen alignment between South Africa’s climate transition, industrial strategy, and trade policy.