The UK plans to introduce a carbon border adjustment mechanism (CBAM) by 2027. In a submission to the UK Treasury in June, South Africa argued that this move might violate World Trade Organization rules. Because of South Africa's heavy reliance on coal for electricity, the country is particularly vulnerable to CBAM's impact.

South Africa contends that the timeline is too short for its exporters to adapt and that compliance requirements are overly burdensome. The country has appealed for smaller fines or exemptions for African nations, stating that CBAM could jeopardize US$1.5 billion of its annual exports.