CBAM and Platinum Group Metals: SA's Strategic Advantage

South Africa holds 80% of global PGM reserves. As hydrogen fuel cells and catalytic converters drive EU demand, understanding the carbon footprint of SA PGM production is becoming commercially critical.

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

South Africa's PGM Dominance

South Africa holds approximately 80% of the world's known platinum group metal reserves, concentrated in the Bushveld Igneous Complex — one of the world's most remarkable geological formations. The Bushveld Complex hosts platinum, palladium, rhodium, ruthenium, iridium, and osmium in commercially exploitable concentrations found nowhere else on Earth at this scale.

SA's PGM industry produces approximately 70% of global platinum supply, 35% of palladium supply, and 80% of rhodium supply. These metals are critical inputs for:

▸Automotive catalytic converters (platinum, palladium, rhodium)
▸Hydrogen fuel cells (platinum as PEM electrolyser catalyst)
▸Industrial catalysts (petroleum refining, chemical production)
▸Electronics (hard disk drives, sensors)

CBAM Coverage Status

PGMs are not covered by CBAM Phase 1. The regulation covers goods classified under specific CN codes in the steel, aluminium, cement, fertilisers, hydrogen, and electricity sectors. PGMs fall outside these categories.

However, several regulatory developments create indirect carbon requirements for SA PGM exporters:

EU Supply Chain Due Diligence Directive (CS3D): Requires large EU companies to conduct due diligence on the environmental and human rights impacts of their supply chains. Carbon intensity of SA PGM production is a relevant environmental factor.

EU Taxonomy Regulation: Classifies economic activities as 'sustainable' or not based on environmental criteria. EU manufacturers using SA PGMs in hydrogen fuel cells or other green applications may need to demonstrate the carbon footprint of their supply chain to qualify for green taxonomy classification.

EU Critical Raw Materials Act: Designates PGMs as strategic raw materials and encourages supply chain diversification and transparency — including carbon footprint disclosure.

The Green Hydrogen Connection

The most significant long-term driver of carbon requirements for SA PGM exporters is the EU's green hydrogen ambition. The EU has committed to producing 10 million tonnes of domestic green hydrogen and importing 10 million tonnes per year by 2030 under REPowerEU.

PEM electrolysers — the technology of choice for green hydrogen production — use platinum as the primary catalyst. Scaling EU green hydrogen to 20 million tonnes per year requires a significant increase in platinum demand.

For SA PGM producers, this creates a strategic opportunity: position SA platinum as the preferred input for EU green hydrogen infrastructure by demonstrating a credible, verified carbon footprint. A lower-carbon SA platinum product commands a premium in the EU green hydrogen supply chain.

Preparing for Future CBAM Coverage

While PGMs are not in CBAM Phase 1, the trajectory of EU carbon border policy is clear: coverage will expand. SA PGM producers should treat the current period as an opportunity to build their carbon data infrastructure ahead of formal CBAM requirements.

Register on the Digital Product Passport Registry now to establish your verified carbon identity. This positions you for CBAM Phase 2 compliance and satisfies existing EU supply chain due diligence requirements simultaneously.

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

Frequently Asked Questions

Are platinum group metals covered by CBAM?

PGMs are not directly covered by CBAM Phase 1. However, they are critical inputs for hydrogen fuel cells and catalytic converters — both of which are central to the EU's clean energy and transport transition. As EU demand for PGMs grows, EU buyers will increasingly require verified carbon footprint data for their supply chain due diligence, even in the absence of formal CBAM coverage.

Why does the carbon footprint of PGM production matter?

PGM mining and smelting is energy-intensive, and SA's coal-dominated electricity grid means that SA PGM production has a higher carbon footprint than PGMs produced in countries with cleaner electricity. As EU manufacturers face their own carbon reduction obligations under the EU ETS, they increasingly factor supplier carbon intensity into procurement decisions. A lower-carbon SA PGM producer has a commercial advantage over higher-carbon competitors.

What is the connection between PGMs and green hydrogen?

Platinum is the primary catalyst in proton exchange membrane (PEM) electrolysers used for green hydrogen production. As the EU scales up its green hydrogen capacity under the REPowerEU plan, demand for platinum is expected to grow significantly. SA's position as the world's dominant platinum producer makes it a critical partner in the EU's green hydrogen ambitions — but SA PGM exporters must be able to demonstrate the carbon footprint of their production to satisfy EU supply chain due diligence requirements.

Gate 3 — Complete Registration

✓ Gate 1 KYC · ✓ Gate 2 CBAM · Gate 3 DPP →

Digital Product Passport Registry

Complete all three compliance gates — Gate 1 KYC identity verification, Gate 2 CBAM financial authorisation, and Gate 3 Digital Product Passport registration — in one place at the DPP Registry.

Start Three Gates Registration →