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Time of India
24-07-2025
- Business
- Time of India
India's export engine faces carbon headwinds as net-zero rules tighten, study says
India's exports are increasingly vulnerable to climate-linked risks , with over two-thirds of outbound shipments exposed to tightening net-zero regulations in major markets, a study by Net Zero Tracker , a coalition of research groups at the University of Oxford, showed on Thursday. In 2024-25, India exported goods and services worth $824.9 billion, according to data from the Reserve Bank of India. The exports accounted for about a fifth of India's GDP. Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Data Science Digital Marketing Others Technology PGDM Public Policy MCA Leadership Data Science Healthcare Cybersecurity MBA CXO Data Analytics Artificial Intelligence Project Management Degree Management Product Management others Design Thinking Finance healthcare Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details The UK and European Union are rolling out stricter carbon policies, including carbon border adjustment mechanisms , which are tariffs on greenhouse gas emissions associated with production of certain imported goods. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Articles Vally Undo "High carbon emissions are fast becoming a trade risk and India's exports are already under pressure to decarbonise ," Net Zero Tracker said. "For India, the challenge is clear: maintain and grow export competitiveness while slashing embodied emissions across sectors." Live Events Coal powers nearly three-fourth of India's electricity grid, which inflates emissions across both goods and services, including its flagship IT and professional services sectors, said Net Zero Tracker. Meanwhile, rival exporting countries are supplying the same markets up to 20 times more efficiently in carbon terms, largely due to cleaner energy systems, as per the study. India is in the midst of negotiating trade deals with key partners, including the UK and the U.S. But carbon border adjustment mechanisms, set to take effect in Europe from 2026, could impose tariffs on carbon-intensive imports, threatening India's access to these markets, said Net Zero Tracker. India has pledged to reach net zero emissions by 2070, and earlier this year released a draft sustainable finance taxonomy to channel investment into low-carbon sectors . A new national emissions-reduction target is also expected ahead of the COP30 climate summit in Brazil this November.
Reuters
24-07-2025
- Business
- Reuters
India's export engine faces carbon headwinds as net-zero rules tighten, study says
MUMBAI, July 24 (Reuters) - India's exports are increasingly vulnerable to climate-linked risks, with over two-thirds of outbound shipments exposed to tightening net-zero regulations in major markets, a study by Net Zero Tracker, a coalition of research groups at the University of Oxford, showed on Thursday. In 2024-25, India exported goods and services worth $824.9 billion, according to data from the Reserve Bank of India. The exports accounted for about a fifth of India's GDP. The UK and European Union are rolling out stricter carbon policies, including carbon border adjustment mechanisms, which are tariffs on greenhouse gas emissions associated with production of certain imported goods. "High carbon emissions are fast becoming a trade risk and India's exports are already under pressure to decarbonise," Net Zero Tracker said. "For India, the challenge is clear: maintain and grow export competitiveness while slashing embodied emissions across sectors." Coal powers nearly three-fourth of India's electricity grid, which inflates emissions across both goods and services, including its flagship IT and professional services sectors, said Net Zero Tracker. Meanwhile, rival exporting countries are supplying the same markets up to 20 times more efficiently in carbon terms, largely due to cleaner energy systems, as per the study. India is in the midst of negotiating trade deals with key partners, including the UK and the U.S. But carbon border adjustment mechanisms, set to take effect in Europe from 2026, could impose tariffs on carbon-intensive imports, threatening India's access to these markets, said Net Zero Tracker. India has pledged to reach net zero emissions by 2070, and earlier this year released a draft sustainable finance taxonomy to channel investment into low-carbon sectors. A new national emissions-reduction target is also expected ahead of the COP30 climate summit in Brazil this November.
Mail & Guardian
24-06-2025
- Business
- Mail & Guardian
South Africa's export economy at risk as global carbon rules tighten
About 422 000 local jobs are tied to exports to economies with active or incoming carbon border adjustment mechanisms (Oupa Nkosi) South Africa's carbon-intensive export model faces rising risks in a global economy that is increasingly shaped by climate policy, clean energy industrial strategies and cross-border carbon pricing. This is according to a new 'South Africa's formal net zero target for 2050 sits uneasily alongside short-term energy decisions that prioritise fossil fuel expansion and delay coal phase-out,' the analysis from researchers at Net Zero Tracker said, adding that this is undermining confidence in the country's decarbonisation trajectory and exposing its carbon-intensive exports to growing international risk. Overall, 78% of South Africa's exports, worth $135 billion, are sold to countries with net zero targets, supporting 1.2 million domestic jobs — or 7.5% of national employment in 2023. The report found that 422 000 South African jobs are tied to exports to economies with active or incoming CBAMs involve the imposition of China, South Africa's largest trading partner, imported $31.1 billion in goods and services in 2023, more than 98% from sectors where the emissions intensity of the country's production exceeds that of China, Net Zero Tracker said. 'As China moves to price domestic carbon more systematically, these sectors may face growing carbon scrutiny. As The Basic group — Brazil, South Africa, India, and China — has could 'aggravate the trust deficit amongst parties', the analysis noted. 'For developed countries, closing this trust gap and aligning trade with international equity requires upholding the Paris Agreement principle of common but differentiated responsibilities and ensuring unilateral measures like CBAMs are paired with financial, technical and capacity support for developing economies,' it said. Key sectors under threat Alongside government policy, multinational companies are decarbonising supply chains, increasing the economic costs of inaction for countries that lag on driving decarbonisation of their electricity grids. In South Africa's 10 largest export markets, 323 major companies — representing $11 trillion in annual revenue — have full value chain net zero commitments, 'meaning South African firms in their supply chains will have to measure and reduce their own emissions'. South Africa's key export industries face especially acute exposure, according to the report, which said that mining and basic metals made up over 50% of South Africa's export value in 2023, supporting more than 404 000 jobs. The country's basic metals sector has nearly twice the embodied carbon dioxide emissions of its next most carbon-intensive peer country, accounting for 32% of exports and 14% of GDP. More than 80% of basic metals exports go to net zero-aligned markets, and 30% — worth $16.7 billion and supporting 23,000 jobs — go to countries with active or incoming CBAMs. The automotive sector, South Africa's third-largest exporter, is also at risk with 65% of its export value being exposed to CBAMs that are either active, incoming or under discussion. 'South Africa's embodied carbon dioxide emissions from auto manufacturing are the second highest in the world, and while existing CBAM schemes are currently focussed on raw materials their scope is expected to expand, so a proactive approach to mitigating this risk will be rewarded.' In agriculture, South Africa faces growing competitive pressure from lower-emissions suppliers, the report said. Across all top agricultural export categories and destination markets, alternative producers exist with at least three times lower embodied emissions — and are poised to scale into those markets. 'Environmental colonialism' With the second-highest carbon intensity of electricity generation among major economies (behind only India), and high embodied emissions in goods, South Africa's exports will become more vulnerable. This has implications for jobs and tackling poverty in one of the world's most unequal societies, the analysis said. 'Yet South Africa also holds key advantages: world-class renewable energy resources, critical minerals essential to the global transition and access to major trade and diplomatic frameworks, including Brics.' The country is a leading producer of platinum group metals, manganese, vanadium and chromium, which are critical to clean energy technologies, such as hydrogen fuel cells, batteries and wind turbines, the report said. The researchers noted, too, that the International Energy Agency projects that the country will surpass its target of nearly 30 gigawatts of total renewable capacity by 2030, as outlined in its Integrated Resource Plan. As the US administration undermines the multilateral rules-based system, and the global trade landscape shifts beneath its feet, South Africa's path forward is clear, according to the authors. This is to 'pivot both geographically and strategically from climate laggard to leader in climate-aligned, trade-competitive growth'. This path, however, hinges on developed countries, especially those backing South Africa's 'These governments 'Climate-related trade measures like CBAMs should be accompanied by finance and capacity-building support — otherwise these policies risk further entrenching inequality and reinforcing the perception that wealthy countries are protecting their own industry while 'kicking away the ladder' for others.'
Time of India
09-06-2025
- Business
- Time of India
SAfrica's coal dependency puts economy at risk: report
Johannesburg: South Africa's coal-dependent economy could lose billions in export revenue and thousands of jobs as more countries and companies seek carbon-free imports, the Net Zero Tracker watchdog said Monday. Africa's most industrialised nation is one of the largest polluters in the world and generates about 80 percent of its electricity through coal. This makes it "uniquely vulnerable" as companies decarbonise their supply chains and countries penalise carbon-intensive imports, according to the group, a collaboration of four non-profit organisations that tracks net zero pledges. "78 percent of South Africa's exports, worth $135 billion, are traded with 139 jurisdictions which have net zero targets in place. Collectively, these exports support over 1.2 million domestic jobs," the report said. If the country fails to decarbonise its supply chains, it could lose some of that trade and related jobs, it said. The group said South Africa could avoid this scenario by phasing out coal more rapidly and positioning itself as a "strategic supplier in low-emission value chains". "South Africa has the tools to pivot -- proven renewables potential, critical minerals, and seats at global tables," said Net Zero Tracker project lead John Lang. The report argued that South Africa was "well-positioned to become a key supplier of low-emission goods". One of the driving forces behind the decarbonisation push is the European Union's Carbon Border Adjustment Mechanisms (CBAMs). Adopted in 2022, the policy imposes a carbon price on imports of goods such as steel, aluminium and cement from countries with lower environmental standards. A test period began in October 2023 before the law's full entry into force in 2026. The South African Reserve Bank has warned that carbon-based tariffs could reduce exports by up to 10 percent and that CBAMs alone could shrink exports to the EU by four percent by 2030.
IOL News
09-06-2025
- Business
- IOL News
South Africa's coal dependency puts economy at risk: report
Africa's most industrialised nation is one of the largest polluters in the world and generates about 80% of its electricity through coal. Image: Tyna Janoch/Pixabay South Africa's coal-dependent economy could lose billions in export revenue and thousands of jobs as more countries and companies seek carbon-free imports, the Net Zero Tracker watchdog said Monday. Africa's most industrialised nation is one of the largest polluters in the world and generates about 80% of its electricity through coal. This makes it "uniquely vulnerable" as companies decarbonise their supply chains and countries penalise carbon-intensive imports, according to the group, a collaboration of four non-profit organisations that tracks net zero pledges. "78% of South Africa's exports, worth $135 billion, are traded with 139 jurisdictions which have net zero targets in place. Collectively, these exports support over 1.2 million domestic jobs," the report said. If the country fails to decarbonise its supply chains, it could lose some of that trade and related jobs, it said. The group said South Africa could avoid this scenario by phasing out coal more rapidly and positioning itself as a "strategic supplier in low-emission value chains". "South Africa has the tools to pivot -- proven renewables potential, critical minerals, and seats at global tables," said Net Zero Tracker project lead John Lang. The report argued that South Africa was "well-positioned to become a key supplier of low-emission goods". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading One of the driving forces behind the decarbonisation push is the European Union's Carbon Border Adjustment Mechanisms (CBAMs). Adopted in 2022, the policy imposes a carbon price on imports of goods such as steel, aluminium and cement from countries with lower environmental standards. A test period began in October 2023 before the law's full entry into force in 2026. The South African Reserve Bank has warned that carbon-based tariffs could reduce exports by up to 10 % and that CBAMs alone could shrink exports to the EU by 4% by 2030. AFP
