Understanding the EU's Carbon Border Adjustment Mechanism (CBAM)

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The EU’s Carbon Border Adjustment Mechanism (CBAM) involves the imposition of a carbon tariff on imported goods, based on the level of embedded emissions in the goods and the carbon price paid by the manufacturers thereof in the country of origin. Effective from October 2023 under a transitional phase, the CBAM is likely to have profound implications for Africa, particularly least-developed countries (LDCs). African policymakers must urgently advocate for a more equitable approach through the G20 and the AfCFTA Council of Ministers.