Implications for African Countries of a Carbon Border Adjustment Mechanism in the EU
The African Climate Foundation
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Abstract: The report raises concerns about the economic ramifications of the CBAM on Africa, as it is likely to hit the competitiveness of African exports, particularly industrial exports if product coverage expands over time. It also notes that the CBAM process introduces administrative hurdles to market access by African countries, which historically struggled to access the European market. The joint report sets out the implications of the CBAM for Africa regarding relevant obligations under international legal frameworks as well as strategic considerations for African countries, ensuring the CBAM is designed and implemented in such a way that is neither more trade restrictive than necessary nor discriminatory. The CBAM will be introduced on 1 October 2023, with a three-year transition period during which only emissions reporting obligations will apply, without any financial payments or adjustments. After the transition period, the CBAM will be gradually phased in from 2026 to 2034. It will initially cover imports of iron and steel, cement, aluminium, fertiliser, hydrogen, and electricity.