The United Nations Economic Commission for Africa has warned that the European Union’s Carbon Border Adjustment Mechanism could create new challenges for Africa’s industrialization, export competitiveness and long-term manufacturing development.
The concern centers on the potential impact of carbon-related trade measures on African economies, particularly as many countries continue working to expand industrial capacity and develop higher-value manufacturing sectors.
UNECA warned that African countries were not sufficiently involved in the design and implementation of CBAM, despite the mechanism’s potential effects on the continent’s industrial transformation.
Several sectors could face increased exposure:
- Steel and aluminum industries are among the most vulnerable
- North African economies with strong trade links to Europe could face higher risks
- Mozambique may be exposed due to aluminum exports to European markets
- Downstream manufactured goods could also be affected as carbon rules evolve
Although CBAM-covered products account for only around six percent of Africa’s total exports, the impact is concentrated in industries that are important to the continent’s industrial development.
UNECA also warned that CBAM has moved beyond a purely environmental measure and increasingly functions as a trade, industrial and competitiveness policy. This could influence investment decisions, export opportunities and the development of regional value chains.
To reduce vulnerability, African economies are encouraged to strengthen domestic carbon-pricing mechanisms, accelerate industrial modernization and deepen regional trade integration through the African Continental Free Trade Area.
The warning highlights the need for climate-related trade policies to support emissions reduction without slowing Africa’s long-term industrial growth.
VietnamSteel by Hoa Sen Group
