South Africa weighs response as global carbon border taxes expand

SOUTH African policymakers are grappling with how to respond to the growing number of countries adopting Carbon Border Adjustment Mechanisms (CBAMs), with the European Union's version set to take effect in January 2026 and similar measures under consideration in the United Kingdom, United States, Australia, and Japan.

- BANELE GININDZA

At a Presidential Climate Commission (PCC) webinar on Thursday, Department of Trade, Industry and Competition (the dtic) director Mahendra Shunmoogam said the government had formally opposed the EU’s CBAM in its recent submissions, describing it as a unilateral measure that undermines global trade rules and the sovereignty of developing countries.

“Our position is that we fundamentally oppose CBAM because it violates potentially the WTO Agreement and also the Paris Agreement, which says that countries should not take any actions that impact on the national sovereignty of other countries, especially developing countries," Shunmoogam said.

He said that to address the looming January 2026 deadline for implementing the CBAM, the government was in negotiations with the EU to secure flexibilities similar to those granted to the United States.