Geoeconomics of Decarbonization: Climate-Resilient Developmental Regionalism and the AfCFTA

The document analyzes the global race to secure critical minerals, detailing the subsidy-driven strategies of the US, EU, UK, and Canada, and the dominant market position of China in battery production. It argues that African nations can leverage their mineral wealth to drive sustainable structural transformation by adopting a 'climate-resilient developmental regionalism' framework under the AfCFTA, which integrates climate adaptation and mitigation with regional industrialization.

• The United States employs a strategy of domestic production and investment subsidies to reduce foreign dependencies, primarily through the 'Bidenomics Bills' including the 2022 Inflation Reduction Act (IRA), which provides USD 7,500 subsidies for US-made electrical vehicles that exclude Chinese components.
• The European Union has responded to US subsidies with the Green Deal Industrial Plan, allocating approximately EUR 510 billion to sectors like wind, solar, and clean hydrogen, and the March 2023 Critical Raw Materials Act to secure green and digital supply chains.
• The United Kingdom's 2022 Critical Mineral Strategy prioritizes lithium, cobalt, graphite, silicon, tin, and rare earth elements, supported by an Automotive Transformation Fund and a goal of full zero-emission compliance for new vehicles by 2035.
• Canada's critical minerals strategy focuses on fast-tracking mining approvals for lithium, copper, cobalt, rare earth elements, graphite, and nickel, allocating CAD 3.8 billion in federal funding in 2022.
• China dominates the global battery market, accounting for approximately 75% of lithium-ion battery production, and is the largest producer for 12 of 18 identified critical minerals.
• While Chinese companies hold significant stakes in African copper and cobalt—controlling 41% of cobalt production in the DRC—the majority of African mining production is still controlled by Western transnational corporations like Glencore and Anglo American.
• The author proposes 'climate-resilient developmental regionalism' under the AfCFTA, which combines adaptation and mitigation to achieve sustainable development by building regional industrial value chains and improving cross-border infrastructure.

APA

Ismail, F. (2024). Geoeconomics of Decarbonization: Climate-Resilient Developmental Regionalism and the AfCFTA. Africa Policy Research Institute. https://afripoli.org/geoeconomics-of-decarbonization-climate-resilient-developmental-regionalism-and-the-afcfta

Chicago

Ismail, Faizel. Geoeconomics of Decarbonization: Climate-Resilient Developmental Regionalism and the AfCFTA. Africa Policy Research Institute, 2024. https://afripoli.org/geoeconomics-of-decarbonization-climate-resilient-developmental-regionalism-and-the-afcfta.

Wikipedia

{{cite report |last1=Ismail |first1=Faizel |title=Geoeconomics of Decarbonization: Climate-Resilient Developmental Regionalism and the AfCFTA |publisher=Africa Policy Research Institute |date=4 September 2024 |url=https://afripoli.org/geoeconomics-of-decarbonization-climate-resilient-developmental-regionalism-and-the-afcfta |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ismail2024geoeconomics, author = {Ismail, Faizel}, title = {{Geoeconomics of Decarbonization: Climate-Resilient Developmental Regionalism and the AfCFTA}}, institution = {Africa Policy Research Institute}, year = {2024}, month = sep, url = {https://afripoli.org/geoeconomics-of-decarbonization-climate-resilient-developmental-regionalism-and-the-afcfta}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }