If you are a South African manufacturer or producer, your world may be shrinking. You might be producing world-class goods, but if those goods are powered by a coal-heavy grid, which they probably are, they become 35% more expensive the moment they touch European soil.
The EU’s Carbon Border Adjustment Mechanism (CBAM) could be a real threat to your export margins. But with a Red Rocket wheeled decarbonisation strategy
, you’ll save on electricity costs, and ensure your South African product is competitively priced in the international market.
Why your footprint matters
For decades, South African manufacturers and food processors have competed on quality and efficiency. But the rules have changed. The EU is effectively imposing a carbon tax on imports to ensure that international products don’t have an unfair price advantage over their cleaner, European-made counterparts. Meaning goods produced outside of the EU are being treated the same as if they’re manufactured in the EU, and the ripple effect is crippling.
If your factory, processing line, cold storage, or heavy machinery are drawing power from the national grid, your products will have a heavy carbon footprint. And unfortunately for many South African exporters, this associated 35% CBAM often signals an exit from the European market.
And no, your roof won’t solve it.
When most production and manufacturing businesses realise they need a sustainable energy solution, they look at their factory roof. For high-intensity sectors, rooftop solar is not the solution:
- High Demand, Low Surface Area: A food processing plant with massive refrigeration needs or a factory with industrial furnaces requires more energy than a roof can ever provide. You might offset say 10% of your load, but the remaining 90% still triggers the CBAM penalty.
- The Winter Peak Trap: South African manufacturers are crushed by winter peak tariffs. Rooftop solar; less effective during the shorter, cloudier days of winter, offers zero protection against these margin-destroying costs, especially during Peak periods.
But with Red Rocket’s tailored Power Purchase Agreement (PPA), these concerns are all a thing of the past.
Wheeling Your Way into the EU Market
Through Off-Site Energy Wheeling, Red Rocket develops utility-scale wind and solar projects in South Africa’s highest-yield regions. We feed that green energy into the grid, and you draw it at your factory or processing plant.
- Total Decarbonisation: Because we aren’t limited by roof size, we can provide enough green energy to help you achieve carbon-neutral status.
- Verified Green Energy: We provide the contractual proof and certificates required to bypass CBAM penalties, ensuring your exports are treated as “clean” goods.
- Cost Certainty: While the energy cost in South Africa is set to rise year on year, a Red Rocket PPA locks in your energy costs for the long term, protecting you from both local tariff hikes and international penalties.
Join the Energy Revolution
Red Rocket isn’t just an energy provider; we are a family of pioneers and visionaries who believe the South African industry can – and should – lead the world in the green transition. We have the scale (over 22,000 MW in development) and the grit to handle the complex needs of any production or manufacturing sector.
By choosing a wheeled decarbonisation strategy, you aren’t just saving on electricity; you are fortifying your business against a changing global economy. You are ensuring that “Made in South Africa” remains a mark of quality, sustainability, and competitive pricing.
Contact Red Rocket today for your tailored CBAM-readiness review.
