CBAM and Gauteng Industrial Exporters: Steel, Chemicals, and Fertilisers

Gauteng is South Africa's industrial heartland, home to the country's largest steel producers, chemical companies, and fertiliser manufacturers. This guide covers the CBAM implications for Gauteng-based exporters.

Published April 2026·Last updated April 2026·carbonborderadjustment.co.za

CBAM and Gauteng Industrial Exporters: Steel, Chemicals, and Fertilisers

Gauteng is South Africa's industrial heartland, generating approximately 35% of the country's GDP and hosting the largest concentrations of CBAM-exposed industries. For Gauteng-based exporters, CBAM is not a distant regulatory concern — it is an immediate financial reality.

Gauteng's CBAM-Exposed Industries

Steel Production (Vaal Triangle) The Vaal Triangle — centred on Vanderbijlpark, Vereeniging, and Sasolburg — is South Africa's primary steel production region. ArcelorMittal South Africa's Vanderbijlpark works is the country's largest flat steel producer, with a capacity of approximately 2.5 million tonnes per year.

Chemicals and Fertilisers (Sasolburg and Secunda) Sasol's operations at Sasolburg and Secunda produce a wide range of chemicals and fertilisers using coal-to-chemicals (CTL) technology. The CTL process is significantly more carbon-intensive than natural gas-based alternatives, giving Sasol one of the highest embedded carbon intensities of any SA producer.

Ammonium Nitrate (Modderfontein) AECI's Modderfontein facility (east of Johannesburg) is one of South Africa's largest ammonium nitrate producers. Ammonium nitrate is covered by CBAM and is exported to EU markets for agricultural and industrial use.

The Eskom Load Shedding Factor

Gauteng industrial companies have been particularly affected by Eskom's load shedding programme, which has forced many to rely on diesel generators as backup power. This has two CBAM implications:

▸Increased embedded carbon — Diesel generation (0.7 kgCO₂/kWh) is less carbon-intensive than the Eskom coal grid (0.9 kgCO₂/kWh) but still significantly higher than renewable alternatives
▸Data complexity — Tracking electricity consumption across multiple sources (Eskom grid, diesel generators, on-site renewable) adds complexity to embedded carbon calculations

Decarbonisation Opportunities in Gauteng

Gauteng industrial companies have several pathways to reduce their CBAM liability:

▸Renewable electricity PPAs — Several large solar and wind farms in the Northern Cape and Free State can supply renewable electricity to Gauteng via wheeling agreements
▸On-site solar PV — Large industrial facilities in Gauteng have significant rooftop and land area suitable for solar PV installation
▸Process efficiency improvements — Upgrading furnaces, kilns, and other energy-intensive equipment to reduce energy consumption per tonne of product
▸Fuel switching — Replacing coal with natural gas or biomass in combustion processes

For a complete CBAM compliance registration pathway, visit the Digital Product Passport Registry.

Frequently Asked Questions

Which Gauteng companies have the highest CBAM exposure?

The highest CBAM exposure in Gauteng is concentrated in: (1) ArcelorMittal South Africa (Vanderbijlpark flat steel and Newcastle long steel), (2) Sasol (fertilisers and chemicals at Sasolburg and Secunda), and (3) AECI (ammonium nitrate at Somerset West and Modderfontein).

How does Sasol's coal-to-chemicals process affect CBAM?

Sasol's coal-to-chemicals (CTL) process at Secunda is one of the most carbon-intensive industrial processes in the world, with an emission factor significantly higher than natural gas-based alternatives. Sasol's CBAM liability for fertilisers and chemicals exported to the EU is among the highest of any SA producer.

Is Vanderbijlpark steel subject to CBAM?

Yes. ArcelorMittal South Africa's Vanderbijlpark works produces flat steel products (hot-rolled coil, cold-rolled coil, galvanised steel) that are covered by CBAM. Any of these products exported to EU member states are subject to CBAM obligations.

What is the impact of Eskom load shedding on Gauteng industrial CBAM calculations?

Load shedding forces Gauteng industrial companies to use diesel generators as backup power. Diesel generation has an emission factor of approximately 0.7 kgCO₂/kWh, which must be included in embedded carbon calculations. Extensive load shedding can significantly increase a company's embedded carbon.

Are Gauteng automotive manufacturers affected by CBAM?

Automotive manufacturers are not directly covered by CBAM in Phase 1. However, the steel and aluminium they use as inputs are covered, and the embedded carbon in those inputs affects the overall carbon footprint of the vehicles. As CBAM expands, automotive manufacturers may face indirect CBAM exposure.

Gate 3 — Complete Registration

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Digital Product Passport Registry

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