South Africa's aluminium smelters face the highest CBAM cost-per-tonne of any SA sector. Eskom's coal-heavy grid (0.95 tCO₂/MWh) means SA primary aluminium carries embedded emissions far above the EU average, resulting in maximum CBAM exposure.
The Hillside smelter (Richards Bay, South32) and Bayside smelter (Richards Bay, South32) are SA's primary aluminium producers. Mozal in Mozambique is SA-linked. Combined annual production exceeds 700,000 tonnes. The electricity intensity of aluminium smelting (13,000-15,000 kWh/tonne) combined with Eskom's coal grid results in Scope 2 emissions of approximately 12-14 tCO₂/tonne — significantly above the EU default of 12.4 tCO₂/tonne.
Calculate electricity consumption per tonne of aluminium produced
Apply Eskom grid emission factor (0.95 tCO₂/MWh) to get Scope 2 emissions
Add direct process emissions (Scope 1) from anode effects and other sources
Compare actual vs EU default (12.4 tCO₂/t) — consider renewable energy investment
Engage verifier and provide data to EU importers
SA aluminium faces the steepest CBAM challenge due to Eskom's grid intensity. Renewable energy PPAs or on-site solar could dramatically reduce Scope 2 emissions and CBAM liability.
CBAM Cost Estimate
Key SA Exporters