SATI Beyond The Bunch 3rd Quarter 2026

These issues, which apply beyond agriculture, have prompted the development of the Carbon Border Adjustment Mechanism (CBAM). The CBAM aims to create parity between carbon-related costs for domestic and imported products. It currently only applies to iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen. Other countries are likely to follow the CBAM model. The United Kingdom will implement a CBAM from 2027, covering broadly similar imports and excluding agricultural products, while Australia, Canada, and Japan are considering CBAMs. Commentators have mixed views on whether the European CBAM will be extended to agriculture and, if so, when. However, the CBAM’s size will depend on South Africa’s carbon taxes. If a product is subject to equal carbon taxes whether it is made (or grown) here or in Europe, it will not attract additional taxes under the CBAM.

This implies that a third-party certificate alone will no longer be sufficient to meet retailers’ requirements. They need real emission data from their suppliers. Furthermore, while measuring and documenting emissions is a good start, the ultimate goal is reduction. Companies will be expected to set targets and formulate plans to bring down their emissions. Once retailers have trimmed what they can from scope 1 and 2, their only option for further cuts will be scope 3 — their suppliers. Carbon border adjustment mechanisms Europe recognises that trade-offs between profitability and climate change mitigation (as well as other sustainability objectives) could disadvantage their businesses. The European Commission is also concerned about carbon leakage, in which carbon emitters relocate to less-regulated countries.

DEWALD KIRSTEN | LUCENTLANDS

Consumers want to purchase food that is ethically and sustainably grown. A carbon footprint is one way that growers can demonstrate this.

BEYOND THE BUNCH • 6 • QUARTER 3 • 2026