CBAM and Energy & Hydrogen

Hydrogen is covered by CBAM, but green hydrogen has near-zero embedded carbon. South Africa's renewable energy resources position it as a potential major green hydrogen exporter to the EU.

South African exporters can claim a deduction for the SA carbon tax against their CBAM liability. This guide explains how the deduction works and how to maximise your carbon tax credit.

South Africa's electricity grid is approximately 80% coal-fired, resulting in one of the highest grid emission factors in the world. This significantly increases the CBAM liability for electricity-intensive SA exporters.

Renewable energy power purchase agreements (PPAs) are the most impactful strategy for reducing CBAM liability for electricity-intensive SA exporters. This guide explains how PPAs work and how to structure them for CBAM compliance.

Green steel — produced with near-zero embedded carbon — is the long-term solution to CBAM liability for SA steel producers. This guide explains the green steel production pathways and their CBAM implications.

CBAM measures embedded carbon using Scope 1 direct emissions and Scope 2 indirect emissions from electricity. Understanding the difference is essential for accurate CBAM reporting.