African oil producers are demanding a suspension of the implementation of the European Union's Carbon Border Adjustment Mechanism for goods imported from African countries.
"Africa cannot develop without fossil fuels. Africa deserves better," stated Dr. Omar Farouk Ibrahim, the Secretary General of the African Petroleum Producers' Organization (APPO), at the ongoing Africa Oil Week in South Africa, arguing that the EU's planned tax threatens the economic growth of African nations.
According to estimates by the African Climate Fund, African countries could collectively lose approximately $25 billion annually due to the EU's upcoming CBAM implementation.
The EU began phasing in the CBAM, essentially a system of customs duties on carbon emissions during the production of goods imported into the EU from countries with weaker climate regulations, in the fall of 2023. Until January 2026, the system will operate in an information gathering mode.
Brussels plans to gradually impose the "green tariff" on all goods imported into the EU starting in 2026, with the full implementation expected by 2034. By that year, the cost of carbon emissions is meant to be an inherent part of the price of all goods sold within the EU.