The region currently relies on fossil fuels to support industrialization
African countries should be exempted from the EU’s plan to introduce a cross-border carbon adjustment mechanism (CBAM) for certain imports. This was stated by the head of the African Development Bank (AfDB), Akinwumi Adesina, Reuters reports.
He estimated the potential cost of this fee for the continent at $25 billion a year.
Adesina noted that African countries currently rely on fossil fuels as they increase energy production to meet growing populations and seek to produce more products for export with higher value, although investment in renewable energy has increased.
Speaking on the sidelines of the UN climate conference COP28 in Dubai, Akinwumi Adesina said the end result of CBAM would be to return Africa to exporting more raw materials.
«Africa cannot afford to lose $25 billion a year. Second, the use of natural gas in Africa in addition to renewable energy sources will give us the stability we need to industrialize… So I think Africa deserves an exception,” he noted.
China and the EU have disagreements on carbon policy coordination. China is resisting the European CBAM, which may affect broader issues. According to S&P Global forecasts, China will export 868.94 million tons of goods subject to the CBAM from 2026 to 2040, 42% of which will be steel products and 6% aluminum.
As GMK Center reported earlier, India has stated that it will not accept any unfair taxes or levies on steel imposed by the EU under CBAM. The country intends to oppose CBAM at the World Trade Organization.