CGD in the News

How Europe’s Carbon Border Tax Could Help Africa

May 01, 2023

More broadly, the tariff may have a disproportionate impact on countries with weaker economies and limited infrastructure. Lacking the capacity to meet the EU’s stringent carbon standards would put these countries at a competitive disadvantage and further widen the economic gap with the bloc. An analysis by the Center for Global Development found that Mozambique’s GDP, for example, could plausibly fall by 1.6%, given that the country sent more than half of its aluminum exports to the EU in 2019.