CBAM Full Enforcement Begins January 2026 — What SA Exporters Must Do Now
The Carbon Border Adjustment Mechanism entered its definitive phase on 1 January 2026. SA exporters shipping steel, aluminium, cement, fertilisers, hydrogen, or electricity to the EU must now have a registered CBAM declarant and purchase CBAM certificates.
CBAM Is No Longer a Future Obligation
As of 1 January 2026, CBAM is in full force. The transitional phase — which ran from October 2023 to December 2025 and required only quarterly reporting — is over. The definitive phase requires three things: (1) your EU importer must be a registered Authorised CBAM Declarant with a CBAM account number; (2) embedded emissions must be measured and verified; (3) CBAM certificates must be purchased at the weekly EU ETS auction price.
Non-Compliance Penalties
Under EU Regulation 2023/956 Article 26, the non-compliance penalty is EUR 100 per tonne of embedded emissions not covered by surrendered certificates. For a typical SA steel exporter shipping 50,000 tonnes/year at 2.1 tCO₂/t, the maximum penalty exposure is EUR 10,500,000 per year.
The SA Carbon Tax Credit
South Africa's carbon tax rate for 2026 is R236/tCO₂ (approximately EUR 11.80/tCO₂). This credit reduces — but does not eliminate — CBAM liability for SA exporters.
Use the CBAM Calculator to estimate your net liability, then register at the Digital Product Passport Registry to begin the compliance process.
CBAM compliance requires a registered Authorised Declarant and verified emission data. Begin your registration at the Digital Product Passport Registry.
Start Registration →