Displaying items by tag: CBAM

TIPS Senior Economist Gaylor Montmasson-Clair took part in the Presidential Climate Commission webinar - see articles

EU carbon border tariffs could knock $16bn off Africa’s yearly GDP

Engineering News - 15 February 2023 by Terence Creamer

Read online at Engineering News

EU's carbon penalties are coming, here's what SA needs to do

News24 - 15 February 2023 by Lameez Omarjee

Read online at News24

Where is the outcry over ‘deeply unjust’ EU carbon border tax?

Business Day - 17 February 2023 by Denene Erasmus

Read online at Business Day or Read PDF 



Published in TIPS In the News

In 2019, the European Union (EU) introduced the Fit for 55 policy package. The policy package aims to reduce the EU’s net greenhouse gas emissions by 55% by 2030 compared to 1990 levels and achieve carbon neutrality by 2050. It includes the Carbon Border Adjustment Mechanism (CBAM), a carbon border tax on embedded GHGs of carbon-intensive products imported into the EU.

The first proposal of the CBAM was published in July 2021. Since July 2021, the CBAM has undergone significant changes. In May 2022, the European Parliamentary Committee on Environment, the implementing agent of the CBAM, published amendments to the CBAM. In June 2022, the European Parliament voted on and approved these amendments. In December 2022, members of the European Parliament reached a provisional and conditional agreement with the European Council on CBAM, with rules to apply from 1 October 2023 with a transition period. The agreement was endorsed by the ENVI in February 2023. It needs to be confirmed by ambassadors of the EU Member States and by the European Parliament and adopted by both institutions before its finalisation.

The TIPS policy brief, European Green Deal: The Carbon Border Adjustment Mechanism and implications for South African and European Union trade by Lerato Monaisa (2021), provided an initial analysis of the impact of the CBAM on South African exports. This policy brief provides an updated analysis, reflecting on the implications of the new provisionally agreed CBAM proposal for South African exports.

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  • Year 2023
  • Author(s) Lerato Monaisa and Seutame Maimele (TIPS)
Published in Policy Briefs