Decarbonization is the future for both Africa and Europe

Africa as the region most vulnerable to climate change. Indeed, the very nature of many African societies depends on climate-related factors. Rainfall and droughts affect agricultural production while poverty limits the continent’s capacity for adaptation or mitigation; all of which lead to a more fragile starting baseline. However, the continent is responsible for only three percent of global carbon emissions; tangible proof of its under-industrialization. Yet, despite Africa’s pressing need for growth and development, many of its countries have eagerly joined the global decarbonization movement. Indeed, many African countries should be commended for their efforts to reduce their national emissions and adapt to the impacts of climate change under the Paris Agreement. Although the dilemma of decarbonizing Africa is not as difficult as it sounds, since it is seen increasingly as an opportunity, rather than a hindrance to growth. Being behind in terms of industrialization would allow these countries to develop green industries more rapidly, without having to compensate for overstretched, ageing industrial capital.

Europe wants to accelerate the world’s green transition by putting in place its Carbon Border Adjustment Mechanism. Although the system is driven by a sense of responsibility for the future of the planet, and not a seemingly latent need for protectionism, this approach will certainly have systemic effects on the stakeholders upstream in the supply chain. Besides, Europe plans to subsidize its green industries to allow them to flourish and lower their costs closer to become economically viable. Nevertheless, the additional cost generated by the adjustment mechanism will most likely be transferred overseas, for example to African farmers or smallholders. We can then expect, at least in the near future, that this additional barrier to entry imposed by Europe will affect local value creation and reduce locally manufactured goods, in favor of supplying raw material resources to Europe. Decarbonization is the future of Africa and Europe at the same time, under different, but complementary perspectives. Protecting the planet is ultimately everyone’s responsibility.

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