Despite some immediate CBAM reprieve, South African industry warns of serious potential fallout

A postponement from incorporating indirect carbon emissions into the European Union’s (EU’s) calculation of a product’s embedded emissions under its Carbon Border Adjustment Mechanism (CBAM) will provide something of a short-term reprieve to South African steel and aluminium exporters, which are heavily exposed to the measure. The EU intends implementing CBAM from January 1, 2026, and the postponement will continue until at least 2027.