Africa’s Green Trade Opportunities: Policy Insights for Aligning Trade and Climate Action

Ambassador Dr. Amina Mohamed, Founder of the Trade Negotiations and Investment Forum

The issues regarding climate change are most pressing for Africa – we face the brunt of the effects, whilst contributing least to global green-house emissions. With our youthful and growing population, we face an unprecedented development challenge – providing economic opportunity and lifting millions out of poverty, within a global carbon budget.

There is no blueprint. This has never been done. But as outlined in the recent Nairobi Declaration, further to the Africa Climate Summit earlier this year – Africa can industrialise and be part of the solution to the climate emergency. We have vast resources. Many producers, including Kenya, already rely on renewable energy supplies. Our carbon footprint is already low. But this has to be recognised. Our exports should not be penalized because we lack the latest new compliance infrastructure.    

We need the right supporting international architecture. At the forthcoming COP28, there will be the first Trade Day. This has been a long time coming. It comes at a time when the major players are now introducing measures to sanction and penalise trade that is perceived to not contribute to environmental outcomes. There are concerns that these measures are undermining the multilateral trading system. These are valid concerns, especially when support measures are not forthcoming to assist with trade-related adjustment.

We need a smarter trade policy, and for policy makers to start linking the dots. Increasing due diligence requirements and transparency, through digitalization has the potential to increase participation in global markets – but only if the supporting infrastructure is there. Poorer producers shouldn’t bear the costs of the global green transition, at a time when many are already investing to adapt to physical effects of climate change. We also require global commitments on climate finance, but the global green transition will only work if we square these circles between climate, trade and finance. 

We at TNIF are looking ahead to help Africa adapt to new green trade measures. TNIF is a new think-tank which seeks to promote dialogue, analysis, and understanding of trade and investment in Africa and beyond. The Forum offers a meeting place and activity centre for policymakers, business, civil society, members of institutions of higher learning, scholars, and experts, who come together to exchange ideas, learning and experiences in matters relating to trade, investment, and negotiations. We are pleased that the host of this year’s COP28 has placed a strong emphasis on technology and energy supply. We look forward to the achievement of outcomes across the trade-related areas of relevance for Africa. The discussions at COP28 will influence the global landscape of trade and investment in the years to come.

Authors

Ambassador Amina Mohamed

Founder, Trade Negotiations Investment Forum