Value-added exports including steel, cement, iron, aluminium and fertilisers will be penalised by an EU carbon border tax and could significantly constrain Africa’s trade and industrialisation progress. “Africa could lose up to $25 billion per annum as a direct result of the EU Carbon Border Tax Adjustment Mechanism (CBAM),” Adesina told delegates at the Sustainable Trade Africa Conference held at the UAE Trade Centre in Dubai. The EU is one of South Africa’s major export destinations, accounting for 19% of its total exports in 2019. Of InterestDecarbonising cement to deal with industrial carbon emissionsSouth African NPO Trade & Industrial Policy Strategies (TIPS) said the CBAM will undoubtedly have a negative impact on South African exports. The South African government has to increase efforts to decarbonise the electricity mix and reform the carbon tax to reflect international carbon pricing,” TIPS said.

Source: The North Africa Journal December 11, 2023 07:50 UTC