A UNECA economist warns that African nations were excluded from the design and implementation process of the EU's Carbon Border Adjustment Mechanism. While the overall macroeconomic impact on the continent may be low, specific sectors like aluminum and steel in North Africa and Mozambique face significant compliance costs. To mitigate these risks, African governments are considering the introduction of domestic carbon taxes. This shift reflects a growing trend where climate regulations are functioning as industrial policy and trade barriers, potentially hindering regional industrialization goals.
