RES4Africa Foundation has released a new policy paper, North Africa’s Energy Transition in the Age of CBAM. The report examines how the European Union’s Carbon Border Adjustment Mechanism (CBAM) will affect North African economies, industries, and energy systems, while identifying pathways for a just and sustainable transition.
Set to enter into full effect in 2026, the CBAM is expected to reshape trade dynamics by imposing a carbon cost on imports of energy-intensive goods. For North Africa, a key trade partner of the EU, this represents both a challenge and an opportunity. The region’s export sectors, particularly fertilizers, cement, iron & steel, and aluminum, face heightened exposure to the new rules. At the same time, North Africa’s abundant renewable energy resources, geographic proximity to Europe, and growing green hydrogen potential could give it a strategic edge.
The policy paper highlights:
-Industrial exposure: The policy paper highlights varying levels of industrial exposure among analyzed nations, noting that early decarbonization efforts are a key factor in building economic resilience.
-Green opportunities: Investments in renewable energy, hydrogen, and carbon pricing could safeguard competitiveness and foster sustainable growth.
-Partnerships for impact: The EU–North Africa climate partnership must be reimagined to ensure fairness, capacity-building, and financial support for green industrialization.
The report provides concrete recommendations for governments, industries, and the EU to ensure that the transition is fair, inclusive, and aligned with global decarbonization goals.
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