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The EU Carbon Border Adjustment Mechanism as an Incentive for Carbon Pricing in African Countries

In: The Palgrave Handbook of Carbon Trading in Africa

Author

Listed:
  • Timothé Beaufils

    (Potsdam Institute for Climate Impacts Research
    Potsdam University
    Mercator Research Institute on Global Commons and Climate Change)

  • Obindah Gershon

    (Covenant University, Department of Economics and Development Studies
    Covenant University, Center for Economic Policy and Development Research (CEPDeR))

  • Michael Jakob

    (Mercator Research Institute on Global Commons and Climate Change
    Climate Transition Economics)

Abstract

The European Union (EU) is gradually phasing in the Carbon Border Adjustment Mechanism (CBAM). The CBAM will eventually apply the carbon price prevailing in the EU on emissions that were released to produce imports of certain carbon-intensive industries. This chapter uses Multi-Regional Input-Output data to discuss to what extent five selected African countries, namely Cameroon, Ethiopia, Mozambique, Nigeria and Tunisia, might be affected by the EU CBAM. It then analyses how the CBAM could pose an incentive for carbon pricing in these five countries. This would reduce the amount that exporters need to pay to the EU and instead channel the revenues to their domestic budgets. We also demonstrate how different degrees of exposure to the CBAM may matter for the choice of emission coverage for a domestic carbon pricing scheme.

Suggested Citation

  • Timothé Beaufils & Obindah Gershon & Michael Jakob, 2026. "The EU Carbon Border Adjustment Mechanism as an Incentive for Carbon Pricing in African Countries," Springer Books, in: Obindah Gershon & Ayodele Asekomeh & Smith I. Azubuike (ed.), The Palgrave Handbook of Carbon Trading in Africa, pages 123-140, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-00934-0_6
    DOI: 10.1007/978-3-032-00934-0_6
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