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Mozambique could lose as much as 1.5 percent of its GDP due to the CBAM levies. (Photo: South32)

Analysis

How will the EU's carbon border tax affect Africa?

African and European officials are heading for a confrontation over the costs of a new carbon tax which could cut trade levels and complicate wider negotiations at the UN COP28 Climate Summit in Dubai starting on Thursday (30 November). South Africa and India, with the discreet support of the United States, are challenging the new tax at the World Trade Organization arguing that it constitutes a discriminatory trade barrier.

At issue is the European Union's Carbon Border Adjustment Mech...

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Author Bio

Patrick Smith is Editorial Director of Africa Confidential, the premier news and analysis service on economic, political and security developments in Africa.

Bryan Pearson is a journalist and Managing Director at Africa Confidential.

Mozambique could lose as much as 1.5 percent of its GDP due to the CBAM levies. (Photo: South32)

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Author Bio

Patrick Smith is Editorial Director of Africa Confidential, the premier news and analysis service on economic, political and security developments in Africa.

Bryan Pearson is a journalist and Managing Director at Africa Confidential.

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