This report outlines targeted entry points to be considered for mitigating adverse impacts associated with the rise of Border Carbon Adjustments (BCAs), with a particular focus on managing their effects in South Africa. The proposed interventions aim to safeguard and enhance South Africa’s access to export markets while supporting the country’s transition toward a low-carbon, competitive economy.

Interventions are grouped into four pathways, anchored by a foundational “no-regret” assumption: institutional arrangements must be established, and awareness of climate-trade dynamics must be significantly elevated across government, industry, labour, and civil society. Given the complexity of these interventions, a comprehensive and coordinated approach is essential to engage and align all stakeholders.

The Authors would like to acknowledge the Manufacturing Circle CBAM working group, the NEDLAC trade and industry chamber, PCC’s Climate Finance and Innovation (CF&I) working group, the National Treasury, the Department of Forestry, Fisheries and the Environment, the Department of Trade Industry and Competition (the dtic), the TIPS internal team and the Council for Scientific and Industrial Research (CSIR) for their comments and engagements on drafting this research.

This publication was commissioned by the PCC and has been made possible with the financial support of the African Climate Foundation. The contents of this publication and any events are the sole responsibility of the authors and do not necessarily reflect the views of the funders.

Download here: Border Carbon Adjustments Research: Strategic Pathways to Mitigate Adverse Impacts

Recommended citation: Maimele, S., Ismail, F., Patel, M., Hector, M. (2025). Border Carbon Adjustments Research: Strategic Pathways to Mitigate Adverse Impacts. Presidential Climate Commission, South Africa.

How can the cotton, textiles and apparel regional value chain drive the implementations of the AfCFTA?

The key message of this paper is that the AfCFTA should be implemented in a manner that addresses the existing asymmetries between the member states and the need for all members to benefit from the agreement. The questions that the paper sets to answer are the following: how can the 55 member states consisting of 33 Least Developed Countries (LDCs), 16 Landlocked Developing Countries (LLDC) and six Small Island Developing States (SIDS) integrate in a manner that is mutually beneficial, sharing the benefits of free trade while compensating smaller economies and more vulnerable sectors – in both large and small economies – from adjustments and job losses? What trade and industrial policy measures and mechanisms are required to ensure that the benefits of AfCFTA are spread to poorer and smaller economies? What investments are required to support the development of cross-border infrastructure needed to advance intra-regional trade? How can the AfCFTA advance both democratic institution building and inclusive economic development to make democracies both resilient and sustainable? How can the Cotton, Textiles and Apparel Regional Value Chain drive the Implementation of the AfCFTA?

South Africa, albeit more than other African countries, has contributed a nominal amount to the global stock of GHG emissions. However, it is imperative that it shifts to a green industrialisation path, for two main reasons. First to avert looming risks arising from fundamental geo-political and economic shifts in the global economy. Second, to take advantage of opportunities this shift presents for South Africa’s industrialisation. Greening industrialisation and industrial policy represents an opportunity for South Africa to shift from fossil-fuel intensive stagnation to a higher value-added, labour-absorbing and less carbon-intensive economy. 

The case for reform of public employment programmes (PEPs) has become increasingly urgent, as South Africa grapples with an ongoing unemployment crisis – alongside the need to address some scepticism about whether these programmes are delivering meaningful value for participants, society and the economy.

The purpose of reform of PEPs is to improve the outcomes and impacts from the public investments being made, for participants, for the society and for the economy. This paper focuses on a particular dimension of that agenda, related to the modalities of delivery of public employment programmes and the relative merits of approaches that “mainstream” public employment into the budgets of existing government programmes, where employment is an ancillary outcome, compared to more programmatic approaches to the design, rollout and scale-up of programmes which have public employment as their main purpose.

This paper is intended to contribute to the discussion on how to build a broader framework to respond to the EU CBAM and engage in diplomacy with the EU to support South Africa and Africa’s “just energy transition”. With South Africa being the Presidency of the G20 in 2025, this also provides African countries with an excellent opportunity to engage with all G20 members (including the United States (US)) on how to restore the integrity of the multilateral trading system and advance a just transition for African countries that also advances their economic development and social transformation. 

The aims of this study were to review current policies and initiatives in the cosmetics sector, including funding support; developing a cosmetic sector strategy over the short- and long-terms; and defining funding and technical models to support the implementation of the strategy. It comprises a brief literature review, analysis of the data provided by international and local agencies, findings from the survey of cosmetic and retail firms in South Africa, and recommendations for the way forward.

This report is a summary of a feasibility study that explores the potential of promoting timber in South African construction by addressing challenges and leveraging benefits. It emphasises capacity building and demand creation deliverables to unlock timber’s environmental, economic, and social benefits in various construction industries.

The study was prepared for TIPS on behalf of the Department of Trade, Industry and Competition  by Enterprises University of Pretoria (Pty) Ltd

Green Industrial Policy (Green IP) aims to advance green industries and transform existing sectors to support the move towards low-carbon economies. Traditionally, industrial policy has focused on enhancing productivity and economic prosperity by supporting specific industries. However, the growing urgency of climate change has caused a shift towards Green IP, which attempts to balance economic growth with sustainable development. Hence, the world’s economic powerhouses, including the European Union, United States, and China, have pivoted their industrial strategies to prioritise sustainability. 

This working paper aims to examine international practices of Green Industrial Policy and draw lessons for greening South Africa’s industrial policy.

The steel value chain has been in a long-term downturn since the mid-2000s. Only the mini mills, which produce long steel, and parts of downstream manufacturing have grown. The new public infrastructure build programme, especially for electricity and rail, should support recovery by boosting domestic demand. It may, however, just fuel imports unless accompanied by policies to promote sustainable local procurement. This paper reviews the economic logic behind localisation and experiences in the public infrastructure push in the 2010s. It outlines the main instruments currently in place to support localisation – that is, tariffs, product designations, and support for actual and potential suppliers. An assessment of the costs, benefits and risks of these instruments follows. The final section indicates some next steps.