Participants attending the CBAM workshop in Kigali, Rwanda

Participants attending the Green Trade Network-supported CBAM workshop in Kigali, Rwanda on 25 May 2022. Photo: Lawrence Nzuve / SEI.

“On average, East Africa scores low in the EU and Carbon Border Adjustment Mechanism (CBAM) policy indicators for (the) macro economy, environment, social protection and governance.”

— SEI Africa Energy and Climate Change Programme Lead Dr Anderson Kehbila

A study by the United Nations Conference on Trade and Development (UNCTAD) , notes that the introduction of carbon pricing coupled with a CBAM may help reduce carbon emissions inside and outside the EU, but the implementation of the CBAM may result in decline in exports in developing countries in favor of developed countries, which tend to have less carbon intensive production processes. In this regard, view and perspectives from EU trading partners in the developing world, including East Africa, can inform measures to mitigate potential negative impacts of the proposed CBAM. At the same time, this world-first policy is an opportunity to generate international momentum that could facilitate a green level playing field that leads to trade policy becoming a climate good.

SEI undertook a scoping study on the potential impacts of the EU trade strategy, including the CBAM implementation in Eastern Africa, in order to generate evidence to inform policy measures both by the EU and the governments of the East African Community (EAC) . This scoping study was supported by the Green Trade Network (GTN) , a network established in 2021 to promote a European agenda for a better alignment of trade policies and trade-impacting measures with key environmental and climate objectives.

Read the article by Quartz Africa about the workshop.

“It helps to monitor progress against sustainability goals. It identifies hotspots, business people and supply chains most closely linked to impacts of carbon emissions. It is easier to take action”

— SEI Africa Centre Director Dr Philip Osano