Investor Presentaiton
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CARBON BORDER ADJUSTMENT MECHANISM (CBAM) IN
THE EU
The EU is one of South Africa's major export destinations, accounting for 19% of its total exports in 2019
CBAM will increase the costs of South African exports in the EU markets, reducing their competitiveness and hence the
likely value of future exports.
A total of US$1.5 billion of South African exports (based on 2021 data) is at risk in the short term, with this number set to
increase as the CBAM covers more and more products.
SA exports to the EU could fall in 2030 by 9% (Chemicals), 16% (aluminium), 31% (iron and steel) and 44% (cement) -
reducing South Africa's GDP by 0.02%
Inclusion of indirect emissions would be particularly disadvantageous to South African producers who are reliant on coal-
based electricity - making us one of the most carbon-intensive exporters
The CBAM will undoubtedly have a negative impact on South African exports. The iron and steel and aluminum sectors are
particularly at high risk. This is primarily due to the use of coal-powered electricity and coal as feedstock in these sectors
Even though South Africa is reducing emissions it is unlikely to be fast enough to address the
significant export revenue loss that CBAM will bring in a time when this revenue is so desperately
needed
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