The United Nations Economic Commission for Africa (UNECA) has criticized the European Union’s Carbon Border Adjustment Mechanism (CBAM), arguing that African countries were largely excluded from the policy’s design and implementation despite the potential consequences for the continent’s industrial development and export competitiveness, according to media reports.
Speaking during the African Development Bank’s annual meetings in Brazzaville, Hanan Morsy, chief economist and deputy executive secretary of UNECA, stated that African governments were neither adequately consulted nor given meaningful opportunities to influence how the mechanism would be implemented.
Climate goals supported, but industrialization remains a priority
According to Morsy, African countries broadly support global climate objectives and recognize the importance of reducing greenhouse gas emissions. However, she emphasized that climate-related trade measures should not come at the expense of Africa’s economic transformation agenda.
Morsy argued that CBAM has evolved beyond a purely environmental instrument and increasingly functions as a broader trade, industrial and competitiveness policy. As a result, its impact extends well beyond emissions reduction and could influence investment decisions, industrial development and export opportunities across developing economies.
Steel and aluminum sectors face the greatest exposure
Although the African Development Bank estimates that CBAM-covered products account for only around six percent of Africa’s total exports, exposure is concentrated in several strategically important industries.
North African economies with strong trade links to Europe are considered particularly vulnerable because of their significant exports of steel and aluminum products. Mozambique has also been identified as one of the more exposed countries, as a large share of its aluminum production is destined for European markets.
Concerns extend beyond primary materials
UNECA and the African Development Bank warned that CBAM’s impact may not be limited to raw materials and primary industrial products. As carbon-related trade requirements evolve, downstream manufactured goods could also become affected, creating additional challenges for Africa’s efforts to develop higher-value industrial sectors and expand manufacturing exports. This could potentially slow industrial diversification and weaken competitiveness in global markets.
UNECA proposes alternative approaches
Morsy suggested that African governments could consider implementing domestic carbon-pricing mechanisms tailored to local economic conditions. Under such an approach, carbon-related revenues would remain within African economies and could be reinvested in industrial modernization, clean energy projects and decarbonization initiatives rather than being transferred abroad through border adjustment mechanisms.
She also stressed the importance of accelerating implementation of the African Continental Free Trade Area (AfCFTA). According to UNECA, stronger regional trade integration and deeper African value chains could help reduce vulnerability to external trade measures while supporting industrial development across the continent.
