the-european-green-deal-context-challenges-and-opportunities-for-south-african-smes-operating-in-the-green-economy-october-2021-3746502af19abc27.pdf

This report analyzes the implications of the European Green Deal (EGD) for South African small and medium-sized enterprises (SMEs) and broader trade. It examines the Carbon Border Adjustment Mechanism (CBAM), the Farm to Fork strategy, and the Circular Economy Action Plan, identifying significant risks in the automotive, mining, and agricultural sectors while highlighting potential export opportunities for environmental goods.

• The European Green Deal (EGD) aims to make Europe the first climate-neutral continent by 2050, with a milestone target to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
• The Carbon Border Adjustment Mechanism (CBAM) is designed to prevent 'carbon leakage' by applying a carbon price to imports of carbon-intensive goods. It will enter a transitional period from January 2023 to 2026, initially covering iron and steel, cement, fertilisers, aluminium, and electricity generation.
• South Africa's automotive sector faces high risk due to the EU's shift toward electric vehicles (EVs) and the phase-out of internal combustion engines (ICE). An estimated 65.2% of South African auto exports to the EU are at high risk of displacement as the value chain contracts around electronic components.
• The 'Farm to Fork' (FtF) strategy may create non-tariff barriers for South African agricultural exports through stricter standards on chemical pesticides, nutrient losses, and organic certification.
• The Circular Economy Action Plan (CEAP) aims to reduce material throughput and may impact the metals sector by restricting the export of scrap metal from the EU, potentially worsening global scrap shortages for producers like South Africa.
• Multinational companies (MNCs) are increasingly pressuring their supply chains to reach net-zero, with 62% of MNCs stating they will remove suppliers that endanger their carbon transition plan within three years.
• South Africa faces 'technological compatibility' risks where domestic policy lags behind EU advances, particularly in renewable energy. The slowing of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has undermined the capacity to manufacture components for export.
• The report identifies significant 'untapped' export potential for environmental goods (CLEG-E). Short-term opportunities include 20 'export ready' products, while long-term potential is more than three times that of short- or medium-term opportunities, particularly in renewable energy plants.
• Germany is identified as the largest single EU market for both short-term and long-term environmental goods opportunities for South Africa.
• The wine industry faces a specific risk where carbon pricing and transport costs drive a shift from bottled wine to bulk wine exports, which erodes margins for small producers and removes value chain linkages in glass packaging.

APA

GreenCape (n.d.). the-european-green-deal-context-challenges-and-opportunities-for-south-african-smes-operating-in-the-green-economy-october-2021-3746502af19abc27.pdf. https://greencape.co.za/assets/The-European-Green-Deal-Context-challenges-and-opportunities-for-South-African-SMEs-operating-in-the-green-economy-October-2021.pdf

Chicago

GreenCape. the-european-green-deal-context-challenges-and-opportunities-for-south-african-smes-operating-in-the-green-economy-october-2021-3746502af19abc27.pdf. n.d. https://greencape.co.za/assets/The-European-Green-Deal-Context-challenges-and-opportunities-for-South-African-SMEs-operating-in-the-green-economy-October-2021.pdf.

Wikipedia

{{cite report |author=GreenCape |title=the-european-green-deal-context-challenges-and-opportunities-for-south-african-smes-operating-in-the-green-economy-october-2021-3746502af19abc27.pdf |url=https://greencape.co.za/assets/The-European-Green-Deal-Context-challenges-and-opportunities-for-South-African-SMEs-operating-in-the-green-economy-October-2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendtheeuropeangreendealcontextchallengesandopportunitiesforsouthafricansmesoperatinginthegreeneconomyoctober20213746502af19abc27pdf, author = {{GreenCape}}, title = {{the-european-green-deal-context-challenges-and-opportunities-for-south-african-smes-operating-in-the-green-economy-october-2021-3746502af19abc27.pdf}}, institution = {GreenCape}, url = {https://greencape.co.za/assets/The-European-Green-Deal-Context-challenges-and-opportunities-for-South-African-SMEs-operating-in-the-green-economy-October-2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }