Abstract:
African enterprises are accustomed to complexity, volatility
and the challenges of doing business on the continent. Yet for
many, the Carbon Border Adjustment Mechanism (CBAM) – a
European Union (EU) policy aiming to prevent carbon leakage,
with the intention to mitigate climate change, feels like a bridge
too far. Following several interviews in Kenya and South Africa,
this whitepaper briefly explains CBAM, before exploring the
implications of the policy for African countries and businesses.
Examining the potential effects of CBAM in South Africa and
Kenya – and for the continent more broadly - raises several
issues. Questions of hypocrisy, power, responsibility and
whether the ultimate aim of reduced carbon emissions will be
effectively accomplished, are explored. Finally, the paper also
considers the opportunities for new trade and manufacturing
relationships across the continent and with non-EU countries,
and positions the policy in the context of the ‘just transition.
