Wednesday, December 6, 2023

Trade and its impact on climate change at the African summit

During the event held at the headquarters of the United Nations Economic Commission for Africa (ECA) from November 16 to 18 and dedicated to the industrialization of the continent, experts agreed that the establishment of one or more carbon markets must have coordination through Afcfta to set prices.

Economist Simo Mavel, from ECA, presented a document on the greening of this free trade area, whose conclusions show that the use of the current Nationally Determined Contributions (NDC) or the establishment of an African carbon market can significantly reduce greenhouse gas (GHG) emissions.

Mavel said that although there is a trade-off between reducing these emissions and stimulating economic benefits, the establishment of a carbon market in Africa is more effective in reducing GHG emissions, while most preserves the expected economic benefits of Afcfta.

He stated that “Africa’s carbon market is more efficient than existing NDCs in achieving Africa’s climate goals.”

Economist Seutame Maimele, from Trade and Industrial Policy Strategies, explains that in order to mitigate the impact of the European Green Deal (EGD) on the continent, countries must advance climate change by making regional green industrial policies using Afcfta and making industrialization change.

In research on EGD and its implications for Africa, Maimele stated that the African Union within the free trade area could lead to the creation of a regional carbon market that can be used to trade credits in carbon.

He considers that this market can also be used to maintain the funds obtained by the European Union on the continent. Regarding the exchange of debt for climate change, he said that in order to anticipate the amount that Africa will pay, it is important to implement measures to hold the global north responsible for climate change.

On how trade in services affects the industrialization of sub-Saharan Africa, the regional integration consultant of the African Development Bank, Bouraima Sawadogo, commented that countries should include services as strategies in their industrial policies.

“Accelerating the implementation of the Afcfta protocol will increase trade in services within the region, which will have a greater impact on industries that import services as inputs,” he added.

World Nation News Desk
World Nation News Desk
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news