Hydrogen Fuel Cell Electric Vehicles [FCEVs] are an important NEV propulsion system technology to consider in a balanced transport de-carbonisation strategy for South Africa. South Africa’s deeply embedded expertise in the processing and industrialisation of platinum group metals are well-suited to drive this technology, and with the catalytic converter value chain losing relevance in the NEV transition, FCEVs present an opportunity to pivot existing industrial capability to support NEV builds. This panel discussion will explore existing FCEV initiatives and interrogate opportunities for South African firms to increase their presence in this value chain.
The implementation of the Clean Fuels 2 programme is expected to commence in 2027 and will serve to support a number of key objectives, including a reduction in harmful tailpipe emissions; improving ambient air quality; and supporting climate change mitigation objectives. Supporting the transition to Clean Fuels 2 presents an opportunity for the South African automotive sector to introduce new models and advanced vehicle technologies, which will further support improved environmental outcomes. However, the closure of several local refineries has negatively impacted the security of supply of liquid fuels. This panel discussion will explore the current fuel production and distribution ecosystem and explore key legislative and economic factors impacting South Africa’s readiness to support Clean Fuels 2.
The Carbon Border Adjustment Mechanism (CBAM) introduced by the European Union (EU) poses significant challenges for South African manufacturers, particularly those exporting to the EU. CBAM is designed to levy charges on carbon-intensive imports from countries with less stringent climate policies, making South African exports more expensive and less competitive in the EU market. This impact is especially concerning for industries such as steel, aluminum, and chemicals, which are energy-intensive and heavily reliant on fossil fuels. South African manufacturers may face increased production costs as they adapt to meet EU carbon standards, or they risk losing market share if they cannot compete on a carbon-adjusted basis. Additionally, CBAM could push manufacturers to accelerate their transition to greener production methods, which requires substantial investment and may strain resources. The overall impact of CBAM underscores the need for South Africa to align its climate policies more closely with international standards to maintain its competitive edge in global markets.