Decarbonisation Strategies

The pressure for South Africa’s manufacturing sector to decarbonise is mounting. With rising carbon tax rates, the implementation of the Carbon Border Adjustment Mechanism (CBAM) for companies that are exporting to Europe (with regions beyond Europe poised to follow suit), and South Africa’s commitment to a Nationally Determined Contribution (NDC) under the Paris Agreement, our South African businesses are under growing pressure to reduce their carbon footprint. The South African Reserve Bank reports that CBAM may lead to job losses of between 350,000 and 2.6 million by 2050, as a result of a contraction in exports of up to 10.1% and GDP contraction of 9.3%. You may be wondering if your business is likely to be affected.

Let’s ask the following questions:

• Do you operate boilers or burners at your facility? Are these fired on coal, heavy furnace oil (HFO), compressed natural gas (CNG), liquefied petroleum gas (LPG), paraffin (kerosene), LO10, diesel or biomass?
• Do you make use of heat in your manufacturing process, in the form of steam, thermal oil or point-of-use heat?
• Do you operate diesel-fired generators for backup power?
• Are you concerned about the effect of carbon tax, Science Based Targets (SBTs) and CBAM on your business?
• Are you under pressure from your clients to reduce your carbon footprint, to decarbonise, or to become carbon-neutral?
• Do you operate in the manufacturing sector in South Africa? By “manufacturing” we mean the food and beverage, pharmaceutical, agricultural, cement, steel, nonferrous, sawmilling, petrochemical, pyrolysis, electricity generation, industrial energy, sugar, mining, waste incineration, glass, organic and inorganic chemical industries including explosives, acids, plastics, and textiles.
• Are you unsure of where to start?

If your answer to any of the above questions is “yes”, then our team of chemical engineers is here to help you develop a decarbonisation strategy. We have 28 staff, 10 years of experience, and deep expertise in industrial energy and South African fuels. When this is combined with our knowledge of GHG accounting, carbon tax, CBAM, SBTs and decarbonisation technologies, we become a strong partner that is able to provide practical strategies to help you decarbonise your business. While tax can be a burden, the desire to avoid taxation also incentivises companies to innovate and adopt more sustainable processes, aligning with the broader corporate goal of sustainability.

Reducing one’s environmental impact is not only necessary to meet regulatory requirements but is also essential for building resilience, protecting one’s reputation, and remaining competitive in an environmentally conscious market. Furthermore, embracing decarbonisation can drive operational efficiency, reduce resource consumption, diversify fuel supply, and minimise operational and regulatory risk. Decarbonisation can future-proof your business!

We are adept at compiling comprehensive Scope 1 and 2 decarbonisation plans tailored to your company’s needs. So let us help you devise a decarbonisation strategy to protect your business and to guide you into your future.