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

Timothé Beaufils (), Obindah Gershon () and Michael Jakob ()
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Timothé Beaufils: Potsdam Institute for Climate Impacts Research
Obindah Gershon: Covenant University, Department of Economics and Development Studies
Michael Jakob: Mercator Research Institute on Global Commons and Climate Change

A chapter in The Palgrave Handbook of Carbon Trading in Africa, 2026, pp 123-140 from Springer

Abstract: 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.

Keywords: Carbon pricing; Carbon border adjustment; Competitiveness; Africa (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-00934-0_6

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DOI: 10.1007/978-3-032-00934-0_6

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