Reforming Border Carbon Adjustments: An African Response to the EU CBAM

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24 July 2026

Anthony Mburu

Introduction

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is potentially an effective tool in the decarbonisation of trade aimed at reducing global greenhouse gas (GHG) emissions. On the other hand, its implementation is likely to result in heavy negative effects on African economies, especially those heavily reliant on the EU market for exports in the covered products. In this piece, building from the outcomes of the Remaking Trade Project, Nairobi workshop, hosted in Strathmore Law School, we explore the economic impacts on Africa of implementation of the EU CBAM, and thereafter, propose potential next steps for African countries in order to ensure that any response from African countries does not conflict with economies’ development goals, and that African countries are able to leverage a more fair system of implementing border carbon adjustment mechanisms at the multilateral level.

The EU CBAM and its economic implications for Africa

The CBAM is part of the EU’s target to reduce its net GHG emissions by 90% by 2040, as compared to their 1990 levels. It aims to safeguard against carbon leakage, under the broader objective of reducing carbon emissions and global warming. Carbon leakage refers to the threat of EU-based companies moving carbon-intensive production overseas to countries that have less stringent climate policies, because of the costs of the EU’s climate policies on production, consumption and investment. CBAM is therefore developed as a system to ensure that a price has been paid for embedded carbon emissions generated in the production of certain imports to the EU, making the carbon price of imports equivalent to the cost of domestic production in the EU, in a bid to motivate foreign producers and EU importers to reduce their carbon emissions.

The CBAM is part of the EU’s target to reduce its net GHG emissions by 90% by 2040, as compared to their 1990 levels

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Author

Anthony Mburu

Anthony Mburu is a student of law at Strathmore University, Nairobi, Kenya, graduating in 2026. He has a strong interest in international trade law, intellectual property law and environmental law and policy. He was part of the team that won the Global Rounds of the 23rd edition John H. Jackson Moot Court Competition at the WTO Headquarters, Geneva. Anthony currently serves as a research intern at the Centre of Intellectual Property and Information Technology Law, Nairobi.

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