The Deputy Minister of Trade, Industry and Competition (the dtic) Ms Nomalungelo Gina, says South Africa will continue to engage its European counterparts on the impact of the European Union’s (EU) Carbon Border Adjustment Mechanism regulation on local businesses exporting to the EU.

This regulation imposes tax on exports to EU countries, for products in emissions-intensive sectors deemed at greater risk of carbon leakage. The goal is to reduce greehouse gases emissions by 55% by 2030. The sectors include steel, aluminium, fertilisers, and electricity.

Gina was speaking at the launch of Bingelela Alloys – a Black Economic Empowerment partner to Australia’s alluminiun smeltering company, South 32. Bingelela Alloys was established in 2018 to produce alluminium products such as wheels, rims, foils among others.

The Deputy Minister highlighted that South Africa does take seriously its obligation in fighting climate change and is committed to making efforts necessary to build towards low carbon economy. But adds that the implementation of some measures may affect local businesses negatively.

“The conditions and tight deadlines that the EU is imposing will be detrimental to us. We have agreed with the Australians that both trade department teams will have to talk to each other frequently on taking forward this issue. Germany is prepared to look at how to raise our concerns in Brussels. I mention this because Bingelela as an off-shoot of South 32 is indirectly affected,” she said.

She further commended South 32 for its progressive step of opting to remodel its site into a downstream aluminium hub, thus contributing towards industrialisation efforts, instead of shutting operations down due to financial pressures.

She emphasised that the South African government, will support local industry in their efforts to green their production processes to comply with the demands of the global markets.

Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
Issued by: The Department of Trade, Industry and Competition (the dtic)
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