HomeSectors

CBAM Sectors

Regulation (EU) 2023/956 covers five sectors. Every South African exporter in these industries must understand their CBAM exposure before the 30 September 2027 deadline.

Steel & Iron

CRITICAL

South Africa's largest CBAM exposure. Ferrochrome production (40% of global supply), pig iron, and hot-rolled coil all fall within scope. Samancor Chrome, Hernic Ferrochrome, Merafe Resources, and ArcelorMittal SA face significant compliance obligations.

CN Codes

7201, 7202, 7206-7229

SA Export Value

~€1.2B

Default emission (2026)

2.18

tCO₂/tonne

10,000t at €65/t ETS

€1,426,156

Sector Detail

Aluminium

CRITICAL

Hillside and Bayside smelters face the highest CBAM cost-per-tonne of any SA sector due to Eskom's coal-heavy grid. SA aluminium's embedded carbon intensity is significantly above EU-produced aluminium.

CN Codes

7601, 7604, 7606, 7607

SA Export Value

~€800M

Default emission (2026)

12.4

tCO₂/tonne

10,000t at €65/t ETS

€8,112,080

Sector Detail

Fertilisers

HIGH

Sasol's chemical operations, Omnia Holdings, and Foskor have meaningful EU export exposure. The Haber-Bosch process for ammonia and urea production is highly energy-intensive and carbon-emitting.

CN Codes

2814, 2808, 3102, 3105

SA Export Value

~€300M

Default emission (2026)

2.85

tCO₂/tonne

10,000t at €65/t ETS

€1,864,470

Sector Detail

Cement

HIGH

PPC, AfriSam, and Lafarge SA have exposure through construction export projects. Calcination process emissions — CO2 released when limestone is heated — are directly in CBAM scope.

CN Codes

2523

SA Export Value

~€150M

Default emission (2026)

0.87

tCO₂/tonne

10,000t at €65/t ETS

€569,154

Sector Detail

Hydrogen

MEDIUM

South Africa's emerging green hydrogen sector represents a significant CBAM opportunity. Green hydrogen produced with renewable electricity carries near-zero embedded emissions vs grey hydrogen's 10.9 tCO2/t default.

CN Codes

2804 10

SA Export Value

Emerging

Default emission (2026)

10.9

tCO₂/tonne

10,000t at €65/t ETS

€7,130,780

Sector Detail