CBAM and Cement: Implications for SA Construction Material Exporters

CBAM and Cement: Implications for SA Construction Material Exporters

Cement is one of the most challenging sectors under CBAM because a significant portion of its carbon emissions are inherent to the production chemistry — they cannot be eliminated without carbon capture technology.

The Chemistry of Cement's Carbon Problem

Portland cement is produced by heating limestone (calcium carbonate) to approximately 1,450°C in a kiln to produce clinker. This process — called calcination — releases CO₂ as a chemical byproduct:

CaCO₃ → CaO + CO₂

Approximately 60% of cement's embedded carbon comes from this calcination reaction. The remaining 40% comes from the energy required to heat the kiln (typically using coal or petroleum coke in South Africa).

The EU default embedded carbon factor for cement is 0.87 tCO₂/tonne, reflecting this dual source of emissions.

South Africa's Cement Export Profile

South Africa's cement industry is primarily domestic-focused, serving the construction sector. Key producers include:

• ▸PPC (Pretoria Portland Cement)
• ▸AfriSam
• ▸Lafarge South Africa (now Holcim)
• ▸Sephaku Cement

While SA cement exports to the EU are relatively modest compared to steel and aluminium, they are growing as SA producers seek new markets. Any SA cement or clinker exported to EU member states in consignments above 50 tonnes is subject to CBAM.

Compliance Pathways for SA Cement Exporters

Given the inherent nature of process emissions, SA cement exporters have limited options for reducing their CBAM liability:

1. ▸Reduce clinker ratio — Blending Portland cement with supplementary cementitious materials (SCMs) such as ground granulated blast furnace slag (GGBS), fly ash, or silica fume reduces the clinker content and therefore the embedded carbon per tonne of cement
2. ▸Switch to alternative fuels — Replacing coal with waste-derived fuels or biomass in the kiln reduces energy-related emissions
3. ▸Carbon capture — Emerging technology that captures CO₂ from kiln exhaust gases; not yet commercially viable at scale in South Africa
4. ▸Claim SA carbon tax credit — South African cement producers paying the domestic carbon tax can claim a deduction against their CBAM liability

Complete your CBAM compliance registration at the Digital Product Passport Registry.