Policy Briefing 290 - The Impact of the CBAM on African

Effective from October 2023, it involves the imposition of a carbon tariff on imported goods, based on the level of embedded emissions in the goods and the carbon price paid by the manufacturers thereof in the country of origin. [...] 3 Policy Briefing 290 | THE IMPACT OF THE CBAM ON AFRICAN ECONOMIES AND THE ROLE OF THE AfCFTA The price of the CBAM certificates will correspond with the prevailing allowances given to European emitters under the EU ETS.8 If the exporting country has a. [...] More recent communication from the EU indicates that some of the revenue generated by the CBAM will be used to repay existing EU debt incurred as part of the COVID recovery package and to fund the EU’s own just transition.10 In 2027, the EU intends to conduct a complete review of the CBAM, including an assessment of its impact on LDC exports. [...] Such measures could include: { the exemption of African countries from the CBAM altogether, or the introduction of a slower phase-in period for the CBAM, or the introduction of sector-specific (aluminium, iron and steel) exemptions for African countries, according to a progressive time schedule; { the exclusion of indirect emissions from the CBAM; { the exclusion of chemicals and polymers from the. [...] 9 Policy Briefing 290 | THE IMPACT OF THE CBAM ON AFRICAN ECONOMIES AND THE ROLE OF THE AfCFTA ∙ Economic Partnership Agreements between the EU and other developed countries and the RECs (and/or the AU) should be introduced that address and bring together the mechanisms identified above so as to enable the transition to cleaner technologies in selected regional value chains.