Speaking at a Trade and Industrial Policy Strategies (TIPS) dialogue on the CBAM, economist Seutame Mailmele warned that $47.3 billion of African exports are at risk as a result of the CBAM in the short term. Further, South Africa’s carbon tax rate is expected to reach $20 a tonne by 2026 and $30 by 2030, which would put local carbon prices far below the EU’s, whose current carbon tax rate is about €90 per tonne. Consequently, estimates are that About $1.5bn in South African exports to the EU are at risk.
