The Carbon Border Adjustment Mechanism (CBAM) is a headline policy initiative of the European Green Deal. One of the drivers of the CBAM is that carbon emissions should have a price, and the CBAM is intended to “align the carbon price on imports with that applicable within the EU”. This policy brief provides an initial assessment of the CBAM and its implications for the global economy and South Africa-EU trade. South Africa’s trade with the EU will be greatly affected by the CBAM and other EU climate regulations. The South African government and exporters to the EU need to put in place measures and mechanisms to ensure trade resilience in a low-carbon global economy. These measures must have the just transition at their core to ensure that South Africa’s move to a low-emissions economy is inclusive, just and equitable, and protects communities and workers so they are not adversely affected.

The brief was funded by the Department of Trade, Industry and Competition. It draws on a report by TIPS, Tralac and Trade Advisory on The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy, funded by the European Union and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU).

Other Policy Briefs

Sustainable complexity: Managing export regulations in the European Green Deal

This policy brief is an initial assessment of the European Green Deal, examining what is currently known about the risks it creates for South African exporters. It provides a summary of what regulatory changes are expected in the EGD, what risks these changes pose for South African firms, and what can be done to begin preparing for these changes.

The brief was funded by the Department of Trade, Industry and Competition. It draws on a report by TIPS, Tralac and Trade Advisory on The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy, funded by the European Union and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU).

Other Policy Briefs

European Green Deal: The Carbon Border Adjustment Mechanism and implications for South African and European Union trade 

The Presidential Climate Commission (PCC) is a multi-stakeholder body established by the President of the Republic of South Africa to advise on the country’s climate change response and pathways to a low-carbon climate-resilient economy and society. 

TIPS research for the PCC included the technical report:

Technical Report No. 1: A Review of local and international policy debates (Muhammel Patel)

Five working papers that provide an evidence-based foundation for a new Framework for a Just Transition - a practical guide to ensure that South Africa’s transition to a low-emissions economy is well-managed, just, and equitable. The Framework will also build on existing just transition debates in the country, the vision set out by the National Planning Commission, and a new series of thematic and social-partner consultations that will gather a diverse range of views on what it means to achieve a just transition.

Policy primers for a South African Just Transition framework (Gaylor Montmasson-Clair)

The Just Transition in coal (Neva Makgetla)

Unemployment and sustainable livelihoods: Just Transition interventions in the face of inequality (Nokwanda Maseko)

Governance and the Just Transition (Neva Makgetla)

Finance and the Just Transition (Sandy Lowitt)

The views expressed in the papers represent those of its authors, and do not necessarily reflect the views of the PCC or its Commissioners. 

Funding provided by the European Climate Foundation

The Presidential Climate Commission (PCC) is a multi-stakeholder body established by the President of the Republic of South Africa to advise on the country’s climate change response and pathways to a low-carbon climate-resilient economy and society. 

TIPS research for the PCC included the technical report:

Technical Report No. 1: A Review of local and international policy debates (Muhammel Patel)

Five working papers that provide an evidence-based foundation for a new Framework for a Just Transition - a practical guide to ensure that South Africa’s transition to a low-emissions economy is well-managed, just, and equitable. The Framework will also build on existing just transition debates in the country, the vision set out by the National Planning Commission, and a new series of thematic and social-partner consultations that will gather a diverse range of views on what it means to achieve a just transition.

This paper looks at Governance and the Just Transition (Neva Makgetla) 

Policy primers for a South African Just Transition framework (Gaylor Montmasson-Clair)

The Just Transition in coal (Neva Makgetla)

Unemployment and sustainable livelihoods: Just Transition interventions in the face of inequality (Nokwanda Maseko)

Finance and the Just Transition (Sandy Lowitt)

The views expressed in the papers represent those of its authors, and do not necessarily reflect the views of the PCC or its Commissioners. 

Funding provided by the European Climate Foundation

The Presidential Climate Commission (PCC) is a multi-stakeholder body established by the President of the Republic of South Africa to advise on the country’s climate change response and pathways to a low-carbon climate-resilient economy and society. 

TIPS research for the PCC included the technical report:

Technical Report No. 1: A Review of local and international policy debates (Muhammel Patel)

Five working papers that provide an evidence-based foundation for a new Framework for a Just Transition - a practical guide to ensure that South Africa’s transition to a low-emissions economy is well-managed, just, and equitable. The Framework will also build on existing just transition debates in the country, the vision set out by the National Planning Commission, and a new series of thematic and social-partner consultations that will gather a diverse range of views on what it means to achieve a just transition.

This paper looks at The Just Transition in coal (Neva Makgetla)

Other working papers:

Policy primers for a South African Just Transition framework (Gaylor Montmasson-Clair)

Unemployment and sustainable livelihoods: Just Transition interventions in the face of inequality (Nokwanda Maseko)

Governance and the Just Transition (Neva Makgetla)

Finance and the Just Transition (Sandy Lowitt)

The views expressed in the papers represent those of its authors, and do not necessarily reflect the views of the PCC or its Commissioners. 

Funding provided by the European Climate Foundation

As South Africa responds to COVID-19 and aims to stimulate the economy and job creation post lockdown, an opportunity should not be missed to consider investing in new product markets which could increase the size and dynamism of the manufacturing sector. Such a package could contribute to arresting the trend of deindustrialisation and shift the trajectory of the industrial base into new, sustainable growth areas and value chains. This would result in new factories, new downstream demand for primary and intermediate inputs, new export products, increased foreign exchange earnings, and new direct and indirect long-term jobs.

Using the idea of “business unusual” TIPS economists put together a Post COVID-19 recovery programme that could provide the impetus to arrest the trend of deindustrialisation and herald the beginning of a new generation of industrial activity. The study comprises a main consolidated report and the seven initial projects that have been identified.

Download a copy or read online Main consolidated report

Seven projects

Project one: Borehole drilling rigs

Project two: Industrial hemp

Project three: Polylactic acid

Project four: Containerised short sea shipping service

Project five: Alternative fuel

Project six: Furfural and furfuryl alcohol plant (biochemicals) 

Project seven: Motocycle components

As South Africa responds to COVID-19 and aims to stimulate the economy and job creation post lockdown, an opportunity should not be missed to consider investing in new product markets which could increase the size and dynamism of the manufacturing sector. Such a package could contribute to arresting the trend of deindustrialisation and shift the trajectory of the industrial base into new, sustainable growth areas and value chains. This would result in new factories, new downstream demand for primary and intermediate inputs, new export products, increased foreign exchange earnings, and new direct and indirect long-term jobs.

Using the idea of “business unusual” TIPS economists put together a Post COVID-19 recovery programme that could provide the impetus to arrest the trend of deindustrialisation and herald the beginning of a new generation of industrial activity. The study comprises a main consolidated report and the seven initial projects that have been identified, including this one on Borehole drilling rigs. This project looks at the production of 100% local content borehole drilling rigs specifically engineered for small and medium enterprise drillers to service increased investment in groundwater access in South Africa and the African export market.

Download a copy or read online Project one: Borehole drilling rigs 

Main report and other projects

Main consolidated report: Industrial development projects

Project two: Industrial hemp

Project three: Polylactic acid (bioplastics)

Project four: Containerised short sea shipping service

Project five: Alternative fuel

Project six: Furfural and furfuryl alcohol plant (biochemicals) 

Project seven: Motocycle components

As South Africa responds to COVID-19 and aims to stimulate the economy and job creation post lockdown, an opportunity should not be missed to consider investing in new product markets which could increase the size and dynamism of the manufacturing sector. Such a package could contribute to arresting the trend of deindustrialisation and shift the trajectory of the industrial base into new, sustainable growth areas and value chains. This would result in new factories, new downstream demand for primary and intermediate inputs, new export products, increased foreign exchange earnings, and new direct and indirect long-term jobs.

Using the idea of “business unusual” TIPS economists put together a Post COVID-19 recovery programme that could provide the impetus to arrest the trend of deindustrialisation and herald the beginning of a new generation of industrial activity. The study comprises a main consolidated report and the seven initial projects that have been identified, including this one on Industrial hemp.This project looks at commercial scale cultivation and production of de-hulled (possibly organic) hemp seeds for human consumption for the export market.

Download a copy or read online Project two: Industrial hemp

Main report and other projects

Main consolidated report: Industrial development projects

Project one: Borehole drilling rigs

Project three: Polylactic acid (bioplastics)

Project four: Containerised short sea shipping service

Project five: Alternative fuel

Project six: Furfural and furfuryl alcohol plant (biochemicals) 

Project seven: Motocycle components

As South Africa responds to COVID-19 and aims to stimulate the economy and job creation post lockdown, an opportunity should not be missed to consider investing in new product markets which could increase the size and dynamism of the manufacturing sector. Such a package could contribute to arresting the trend of deindustrialisation and shift the trajectory of the industrial base into new, sustainable growth areas and value chains. This would result in new factories, new downstream demand for primary and intermediate inputs, new export products, increased foreign exchange earnings, and new direct and indirect long-term jobs.

Using the idea of “business unusual” TIPS economists put together a Post COVID-19 recovery programme that could provide the impetus to arrest the trend of deindustrialisation and herald the beginning of a new generation of industrial activity. The study comprises a main consolidated report and the seven initial projects that have been identified, including this one on Polylactic acid (bioplastics). This project looks at supporting the sugar industry through the domestic production of polylactic acid for export and downstream domestic value addition.

Download a copy or read online Project three: Polylactic acid (bioplastics)

Main report and other projects

Main consolidated report: Industrial development projects

Project one: Borehole drilling rigs

Project two: Industrial hemp

Project four: Containerised short sea shipping service

Project five: Alternative fuel

Project six: Furfural and furfuryl alcohol plant (biochemicals) 

Project seven: Motocycle components

As South Africa responds to COVID-19 and aims to stimulate the economy and job creation post lockdown, an opportunity should not be missed to consider investing in new product markets which could increase the size and dynamism of the manufacturing sector. Such a package could contribute to arresting the trend of deindustrialisation and shift the trajectory of the industrial base into new, sustainable growth areas and value chains. This would result in new factories, new downstream demand for primary and intermediate inputs, new export products, increased foreign exchange earnings, and new direct and indirect long-term jobs.

Using the idea of “business unusual” TIPS economists put together a Post COVID-19 recovery programme that could provide the impetus to arrest the trend of deindustrialisation and herald the beginning of a new generation of industrial activity. The study comprises a main consolidated report and the seven initial projects that have been identified, including this one on a Containerised short sea shipping service. This project looks at creating a short sea shipping service to increase containerise intra-regional trade between South Africa, Mozambique, Tanzania, Kenya and their hinterlands.

Download a copy or read online Project four: Containerised short sea shipping service

Main report and other projects

Main consolidated report: Industrial development projects

Project one: Borehole drilling rigs

Project two: Industrial hemp

Project three: Polylactic acid (bioplastics)

Project five: Alternative fuel

Project six: Furfural and furfuryl alcohol plant (biochemicals) 

Project seven: Motocycle components