In the fall of 2023, the European Union (EU) began rolling out a new plan called the Carbon Border Adjustment Mechanism (CBAM). This system is designed to tackle climate change by targeting carbon emissions linked to goods imported from countries with weaker environmental regulations. The EU wants to ensure that imported products follow the same climate rules as those made within its borders. Right now, they are only collecting data, but by 2026, the full system will kick in. It’s expected to be fully running by 2034, making it more expensive to import goods that produce high carbon emissions during manufacturing.
But not everyone is happy about this plan—especially African oil producers. They are calling for a pause on the EU’s carbon tax for goods coming from Africa. At the Africa Oil Week event in South Africa, Dr. Omar Farouk Ibrahim, the Secretary General of the African Petroleum Producers’ Organization (APPO), voiced strong opposition. He argued that Africa depends on fossil fuels for its development and that the EU’s tax could seriously harm the continent’s economic growth. In his words, “Africa deserves better.”
The stakes are high. The African Climate Fund estimates that African countries could lose about $25 billion every year due to this carbon tax. That’s money African nations can hardly afford to lose. Many African economies rely heavily on exporting products to Europe. If the cost of carbon emissions is added to the price of these exports, they may become too expensive to sell competitively. The tax is expected to be around 87 euros per tonne of carbon emissions, a hefty price for African exporters.
Climate activists from Africa are also speaking out. Naphtali Akudung, CEO of Climrenew, a climate change consultancy in South Africa, criticized the EU’s tax as unfair. Africa contributes less than 3% of global carbon emissions, so why should they pay such a high price? He believes that instead of imposing taxes, the EU should help African countries switch to cleaner energy by investing in renewable energy infrastructure. Akudung warns that if this tax goes through, Europe might gain more power over Africa’s trade and economy, controlling what happens within the continent from the outside.
South Africa is even considering filing a complaint to the World Trade Organization (WTO), arguing that the EU’s carbon tax discriminates against African countries. It’s clear that the battle over the EU’s CBAM is just beginning, with African nations demanding a fairer deal.
