The CBAM which goes into force on a transitional basis in October introduces a carbon tax on exports to the EU.<\/p>\n
But the measure has elicited concern in Africa which counts Europe as a major export market.<\/p>\n
A study carried out by the African Climate Foundation and the London School of Economics suggests that the CBAM\u2019s economic repercussions will be ‘far-reaching’ and most strongly felt in Africa.<\/p>\n
Their modelling based on \u20ac87 per ton suggests that the CBAM would lead to around $25 billion in losses based on 2021 GDP levels, nearly four times higher than what the EU gave to Africa in development assistance in 2021.<\/p>\n
Products such as iron and steel, cement, aluminium, fertiliser, hydrogen, and electricity – which make up a significant portion of Africa’s exports to Europe, will be the first victims of the mechanism.<\/p>\n
After 2026, the CBAM’s scope will extend to other products, potentially leading to bigger economic loss.<\/p>\n
Experts say the measure is punitive, and dramatically reduces the space for developing countries to achieve growth and to create jobs.<\/p>\n
Our guest this week is Faten Aggad, the senior advisor climate diplomacy and geopolitics at the African Climate Foundation.<\/p>\n
Uganda mulls zero tax on electric cars<\/p>\n
Uganda is racing to switch to e-mobility despite having limited infrastructure in the country. Authorities say waiving tax on electric vehicle imports will encourage mass adoption.<\/p>\n
The goal is to reduce pollution and to improve Kampala’s green credentials.<\/p>\n
East Africa sees record growth in FDI<\/p>\n
East African countries defied economic turbulence in 2022 to post a 17 percent growth in foreign direct investment, with South Sudan and Kenya seeing the highest percentage increases.<\/p>\n
On the contrary, Inflows fell in Southern, western and central Africa.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Carbon Border Adjustment Mechanism (CBAM) is the European Union’s measure to encourage countries where it sources imports to adopt cleaner manufacturing.<\/p>\n","protected":false},"author":12963,"featured_media":30741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,15],"tags":[7,26,25],"class_list":{"0":"post-30744","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"category-politics","9":"tag-apie-project","10":"tag-news","11":"tag-politics"},"yoast_head":"\n