AFRICA — The President of the African Development Bank Group Dr Akinwumi Adesina has reiterated his warning that introducing a carbon border tax by the European Union could push Africa back into exporting raw commodities and undermine its industrialization gains.
This tax, estimated at €80 per tonne, could significantly burden African companies striving to export products like cement, steel, aluminum, and fertilizers to Europe.
Adesina advocated for exempting Africa from this taxation, stressing that Africa’s transition necessitates a balanced energy mix incorporating natural gas for industrialization.
Adesina highlighted the injustice in imposing punitive measures that accelerate the net-zero carbon emission targets for developing nations, altering responsibilities set in the Paris Agreement.
He emphasized the importance of fair trade that supports a just energy transition without penalizing Africa.
The discussions at the Doha Forum also touched upon the challenge of reaching a consensus on climate regulations, with considerations for energy access and security.
Børge Brende emphasized the gradual shift from coal to natural gas while acknowledging the complexities of implementing global carbon pricing.
Qatar’s Minister of Finance, Ali bin Ahmed Al Kuwari, echoed similar sentiments, advocating for a realistic approach to climate goals and positioning natural gas as a crucial transition fuel.
Adesina emphasized the pivotal role of multilateral development banks in addressing Africa’s substantial debt burden and other developmental hurdles.
He stressed the necessity of leveraging tools like Special Drawing Rights (SDRs) to enhance financing for developing nations, citing the importance of understanding debt structures and responding effectively.
Adesina highlighted a proposal to channel SDRs to multilateral institutions, envisioning a four-fold leverage of funds to aid in addressing Africa’s financial challenges.
Minister Al Kuwari outlined Qatar’s successful reduction of debt through fiscal policies, while Brende highlighted the global enormity of debt, emphasizing the strain on various economies, including the United States.
Earlier this month, Adesina said that the continent could lose up to US$25 billion annually if the EU carbon tax is implemented.
He stressed Africa’s vulnerability, noting its limited integration into global value chains, and emphasized the significance of intra-regional exchanges as a pivotal trade opportunity.
Adesina highlighted the Africa Continental Free Trade Area, predicting an over 80% surge in intra-Africa exports by 2035.
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