Industrial and Trade Policy Questions Confronting Africa in a Just Transition to a Lower Carbon Economy

The document examines the industrial and trade policy challenges Africa faces during the transition to a lower carbon economy. It emphasizes that for the transition to be 'just,' Africa must move beyond exporting primary products and importing green technology to becoming a manufacturer of value-added lower-carbon products. The author highlights the African Continental Free Trade Area (AfCFTA) as a key mechanism for creating regional value chains for renewable energy components. The paper warns against premature trade liberalization and unilateral carbon-based import restrictions from developed nations, which it characterizes as 'green-washed protectionism.' It concludes that Africa should advocate for a Global Green New Deal that explicitly recognizes the right of developing countries to industrialize and receive real resource transfers for climate adaptation and mitigation.

• To achieve an equitable transition, Africa must transition from being a consumer of green technologies to a producer of value-added lower-carbon-emitting products, such as green energy components and electric or fuel-cell vehicles.
• The African Continental Free Trade Area (AfCFTA) is a critical enabling mechanism for establishing regional value chains for renewable energy and green technology, provided it is supported by national and continental industrial policies.
• Effective industrialization of green sectors in Africa requires the use of specific policy tools, including developmental finance, incentives, localization in public procurement, and the rejection of premature trade liberalization.
• The document warns that unilateral measures by developed countries to restrict imports based on carbon reduction levels, such as border adjustment taxes, may constitute 'green-washed protectionism' designed to protect high-cost industries in developed nations.
• Africa faces significant transition risks; for instance, the cost for South Africa to meet its Paris commitments is estimated at R 1.8 trillion in decommissioned assets, representing approximately 60% of its GDP.
• There is an urgent need for proactive 'climate proofing' of infrastructure to withstand extreme weather events, which could simultaneously create jobs and support recovery from the Covid-19 recession.

APA

Davies, R. (2021). Industrial and Trade Policy Questions Confronting Africa in a Just Transition to a Lower Carbon Economy. Africa Policy Research Institute. https://afripoli.org/industrial-and-trade-policy-questions-confronting-africa-in-a-just-transition-to-a-lower-carbon-economy-32

Chicago

Davies, Rob. Industrial and Trade Policy Questions Confronting Africa in a Just Transition to a Lower Carbon Economy. Africa Policy Research Institute, 2021. https://afripoli.org/industrial-and-trade-policy-questions-confronting-africa-in-a-just-transition-to-a-lower-carbon-economy-32.

Wikipedia

{{cite report |last1=Davies |first1=Rob |title=Industrial and Trade Policy Questions Confronting Africa in a Just Transition to a Lower Carbon Economy |publisher=Africa Policy Research Institute |date=26 October 2021 |url=https://afripoli.org/industrial-and-trade-policy-questions-confronting-africa-in-a-just-transition-to-a-lower-carbon-economy-32 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{davies2021industrial, author = {Davies, Rob}, title = {{Industrial and Trade Policy Questions Confronting Africa in a Just Transition to a Lower Carbon Economy}}, institution = {Africa Policy Research Institute}, year = {2021}, month = oct, url = {https://afripoli.org/industrial-and-trade-policy-questions-confronting-africa-in-a-just-transition-to-a-lower-carbon-economy-32}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }