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SUSTAINABILITY & CLIMATE CHANGE

EU’s Carbon Border Tax: a New Report Shows Africa Stands to Lose US$25 Billion Every Year

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By David Luke

A new European law that imposes the first ever carbon border tax in the world comes into force in October 2023. It will be applied gradually over the next three years before it is fully implemented. A carbon tax is a type of levy imposed on greenhouse gas emissions. It is meant to encourage companies to adopt clean methods of production. But firms could get around the tax by moving production units outside the EU to countries with less strict terms, such as those in Africa, and then exporting products back to the EU. That’s why the EU has come up with the Carbon Border Adjustment Mechanism.

At the moment it costs firms operating within the EU around €80 (US$86) to emit one tonne of carbon dioxide. Under the new system, importers will be charged the same for carbon emissions as domestic producers are. The new policy will initially apply to iron, steel, cement, aluminium, fertilisers, hydrogen and electricity generation. But the mechanism has proved to be highly controversial.

In the global north it’s been applauded as a positive climate action. The policy’s architects see it as an opportunity for the EU to play a “leading role at the global level” on climate action. Climate activists in the global north are excited about it too, although a UN Conference on Trade and Development study concluded that emission reduction from the carbon border adjustment mechanism “represents only a small percentage of global CO₂ emissions”.

In the global south it’s been heavily criticised. Critics see it as an industry protection measure that will have negative repercussions on regions such as Africa. The question being raised is whether such climate action is just. In our newly released report, we point out that the affected sectors – cement, iron & steel, aluminium, fertilisers and electricity – are key drivers of African economies. We conclude that the new policy will wipe out 0.91% of the continent’s combined GDP (equivalent to a fall of US$25 billion at 2021 levels of GDP). To put this in context, the annual losses from the border tax represent, in value, three times the development cooperation budget that the EU committed to Africa in 2021. In 2021 the EU allocated €6.3 billion (US$6.8 billion) to the continent.

We find that Africa would be the most affected region, as a share of GDP. This is because the EU represents a key market to many African economies exporting the products covered by the new law. We conclude that the policy is a significant challenge for Africa. It will disproportionately affect African economies – big and small – even though the continent has a limited carbon footprint. But also we note that measures like this are here to stay: what’s needed from the EU side is a differentiated approach that can give breathing space for countries to adjust, combined with appropriate finance.

Difficult terrain

Our models show that the impact of the new measures could be mitigated if African countries diverted their exports to other markets, notably China and India. But market diversification has been a challenge for most African economies. Take the case of Mozambique. Our modelling found that the country is particularly exposed to the new law because of its aluminium exports to the EU while the value of its exports to China is almost negligible. And there could be more trouble down the road. Reacting to the EU law, other countries which are possible markets for Africa have announced their intention to introduce similar mechanisms in a bid to decarbonise trade.

In March 2023, the UK opened consultations for its mechanism. In May 2023, India announced that it would retaliate by introducing a tariff system. The US introduced its own retaliatory measure through the Inflation Reduction Act.  Attempting to calm criticism, Brussels and some European capitals floated the idea of “recycling” revenue from the new policy to help African countries adjust. However, the EU also made a binding commitment to use the revenue for its own Innovation Fund. This will fund the development of new technologies in the bloc.

In any case, the anticipated revenue of €1 billion to be generated from the new policy is unlikely to compensate for the higher revenue loss of African countries. Africa could arguably weather the impact of the law had it been in the process of scaling up renewable energy capacity. Yet, to date, the continent continues to attract a mere 2% of global investments in renewable energy. The climate finance that was promised is not forthcoming. Nor has the EU itself contributed its fair share to international climate finance.

A road map for responses

Countries will need to urgently reach new export agreements and unlock new markets for their exports to reduce the shock from the EU’s new carbon border law. This will be a tall order for which most countries aren’t prepared. Access to other markets will also depend on the policy direction countries take as they respond to what is seen as a trade war and increased protectionism by the EU.

Considering the continent’s limited carbon footprint and limited challenge to the EU’s industrial base, what’s needed is a differentiated approach that allows countries to adjust, combined with appropriate finance. Costing the pathway to transition in combination with required policy adjustments should form the basis of an African response. Measures such as these are here to stay. African countries should therefore consider a pathway for green industrialisation and garner support around that agenda through investments.

David Luke is a Professor in practice and strategic director at the Firoz Lalji Institute for Africa, London School of Economics and Political Science. Fatten Aggad, a senior climate diplomacy advisor at the African Climate Foundation, contributed to this article. The report on which this article is based was a joint project between the African Climate Foundation and the London School of Economics’ Firoz Lalji Institute for Africa.

Courtesy: The Conversation


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SUSTAINABILITY & CLIMATE CHANGE

EARTH DAY 2024: Packaging Is the Biggest Driver of Global Plastics Use

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Earth Day, celebrated annually on April 22, marks a global commitment to environmental protection and sustainability. The first Earth Day took place in 1970, ignited by U.S. Senator Gaylord Nelson of Wisconsin, who aimed to raise awareness about environmental issues and mobilize action to address them. Since then, Earth Day has evolved into a worldwide movement, engaging millions of people across the globe in activities such as tree planting, clean-up campaigns and advocacy for environmental policies. Its organizer is EARTHDAY.ORG, a non-profit organization dedicated to promoting environmental conservation and mobilizing communities to take action for a healthier planet.

The theme of this year’s Earth Day is “Planet vs. Plastics” – a theme chosen to raise awareness of the damage done by plastic to humans, animals and the planet and to promote policies aiming to reduce global plastic production by 60 percent by 2040.

As our chart shows, global plastics use has increased rapidly over the past few decades, growing 250 percent since 1990 to reach 460 million tonnes in 2019, according to the OECD’s Global Plastics Outlook, which projects another 67-percent increase in global plastics use by 2040 and for the world’s annual plastic use to exceed one billion tonnes by 2052. As our chart shows, packaging is the largest driver of global plastics use, which is why a rapid phasing out of all single use plastics by 2030 is one of the policy measures proposed under EARTHDAY.ORG’s 60X40 framework.

Other major applications of plastics include building and construction, transportation as well as textiles, with the fast fashion industry particularly guilty of adding to the world’s plastic footprint. “The fast fashion industry annually produces over 100 billion garments,” the Earth Day organizers write. “Overproduction and overconsumption have transformed the industry, leading to the disposability of fashion. People now buy 60 percent more clothing than 15 years ago, but each item is kept for only half as long.” Most importantly, the organization points out that 85 percent of disposed garments end up in landfills or incinerators, while just 1 percent are being recycled.

  1. Infographic: Packaging Is the Biggest Driver of Global Plastics Use | Statista

Felix Richter is a Data Journalist


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SUSTAINABILITY & CLIMATE CHANGE

The Sahara Desert used to be a Green Savannah – New Research Explains Why

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By Edward Armstrong

Algeria’s Tassili N’Ajjer plateau is Africa’s largest national park. Among its vast sandstone formations is perhaps the world’s largest art museum. Over 15,000 etchings and paintings are exhibited there, some as much as 11,000 years old according to scientific dating techniques, representing a unique ethnological and climatological record of the region.

Curiously, however, these images do not depict the arid, barren landscape that is present in the Tassili N’Ajjer today. Instead, they portray a vibrant savannah inhabited by elephants, giraffes, rhinos and hippos. This rock art is an important record of the past environmental conditions that prevailed in the Sahara, the world’s largest hot desert.

These images depict a period approximately 6,000-11,000 years ago called the Green Sahara or North African Humid Period. There is widespread climatological evidence that during this period the Sahara supported wooded savannah ecosystems and numerous rivers and lakes in what are now Libya, Niger, Chad and Mali.

This greening of the Sahara didn’t happen once. Using marine and lake sediments, scientists have identified over 230 of these greenings occurring about every 21,000 years over the past eight million years. These greening events provided vegetated corridors which influenced species’ distribution and evolution, including the out-of-Africa migrations of ancient humans.

These dramatic greenings would have required a large-scale reorganisation of the atmospheric system to bring rains to this hyper arid region. But most climate models haven’t been able to simulate how dramatic these events were.

As a team of climate modellers and anthropologists, we have overcome this obstacle. We developed a climate model that more accurately simulates atmospheric circulation over the Sahara and the impacts of vegetation on rainfall.

We identified why north Africa greened approximately every 21,000 years over the past eight million years. It was caused by changes in the Earth’s orbital precession – the slight wobbling of the planet while rotating. This moves the Northern Hemisphere closer to the sun during the summer months.

This caused warmer summers in the Northern Hemisphere, and warmer air is able to hold more moisture. This intensified the strength of the West African Monsoon system and shifted the African rainbelt northwards. This increased Saharan rainfall, resulting in the spread of savannah and wooded grassland across the desert from the tropics to the Mediterranean, providing a vast habitat for plants and animals.

Our results demonstrate the sensitivity of the Sahara Desert to changes in past climate. They explain how this sensitivity affects rainfall across north Africa. This is important for understanding the implications of present-day climate change (driven by human activities). Warmer temperatures in the future may also enhance monsoon strength, with both local and global impacts.

Earth’s changing orbit

The fact that the wetter periods in north Africa have recurred every 21,000 years or so is a big clue about what causes them: variations in Earth’s orbit. Due to gravitational influences from the moon and other planets in our solar system, the orbit of the Earth around the sun is not constant. It has cyclic variations on multi-thousand year timescales. These orbital cycles are termed Milankovitch cycles; they influence the amount of energy the Earth receives from the sun.

On 100,000-year cycles, the shape of Earth’s orbit (or eccentricity) shifts between circular and oval, and on 41,000 year cycles the tilt of Earth’s axis varies (termed obliquity). Eccentricity and obliquity cycles are responsible for driving the ice ages of the past 2.4 million years.

The third Milankovitch cycle is precession. This concerns Earth’s wobble on its axis, which varies on a 21,000 year timescale. The similarity between the precession cycle and the timing of the humid periods indicates that precession is their dominant driver. Precession influences seasonal contrasts, increasing them in one hemisphere and reducing them in another. During warmer Northern Hemisphere summers, a consequent increase in north African summer rainfall would have initiated a humid phase, resulting in the spread of vegetation across the region.

Eccentricity and the ice sheets

In our study we also identified that the humid periods did not occur during the ice ages, when large glacial ice sheets covered much of the polar regions. This is because these vast ice sheets cooled the atmosphere. The cooling countered the influence of precession and suppressed the expansion of the African monsoon system.

The ice ages are driven by the eccentricity cycle, which determines how circular Earth’s orbit is around the sun. So our findings show that eccentricity indirectly influences the magnitude of the humid periods via its influence on the ice sheets. This highlights, for the first time, a major connection between these distant high latitude and tropical regions.

The Sahara acts as a gate. It controls the dispersal of species between north and sub-Saharan Africa, and in and out of the continent. The gate was open when the Sahara was green and closed when deserts prevailed. Our results reveal the sensitivity of this gate to Earth’s orbit around the sun. They also show that high latitude ice sheets may have restricted the dispersal of species during the glacial periods of the last 800,000 years.

Trucks driving through the desert.
The Sahara desert. Getty Images

Our ability to model the African humid periods helps us understand the alternation of humid and arid phases. This had major consequences for the dispersal and evolution of species, including humans, within and out of Africa. Furthermore, it provides a tool for understanding future greening in response to climate change and its environmental impact.

Refined models may, in the future, be able to identify how climate warming will influence rainfall and vegetation in the Sahara region, and the wider implications for society.

Edward Armstrong is a postdoctoral research fellow, University of Helsinki

Courtesy: The Conversation


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SUSTAINABILITY & CLIMATE CHANGE

COP28: New Draft Text on Climate Deal Published; Calls for Transitioning away from Fossil Fuels

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By Imogen Lillywhite,

A new draft text on global stocktake has been published at the UN climate summit, COP28 UAE, on Wednesday morning. While the draft text does not contain the words “phase out”, it includes reference to transitioning away from all fossil fuels to enable the world to reach net zero by 2050.

The text published by the UN’s climate body calls on parties to accelerate and substantially reduce non-carbon dioxide emissions worldwide with a focus on reducing methane emissions by 2030. “We all want to get the most ambitious outcome possible,” Majid Al Suwaidi, COP28 Director-General, said on Tuesday.

The text, published early Wednesday, does not specifically refer to oil, but mentions the need to ‘phase-down’ coal.  It says that it recognises the need for ‘deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5C pathways and calls on Parties to contribute to global efforts.

Among those efforts it recognises the need to triple renewable energy capacity by 2030 and doubling the annual rate of energy efficiency improvements by the same date. It also recognises the need to accelerate the phase-down of coal and accelerate towards net zero energy systems, utilising zero or low carbon fuels by mid century.

While the document does not mention oil or combustion engines, it does recognises the need for accelerating the reduction of emissions from road transport on a range of pathways, including through development of infrastructure and rapid deployment of zero and low-emission vehicles. It also recognises the need to phase out inefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible.

Finance specifics

On the subject of finance, the document said developed countries should continue to take the lead in mobilising climate finance from a wide variety of sources, instruments and channels, noting the significant role of public funds, through a variety of actions, including supporting country-driven strategies, and taking into account the needs and priorities of developing countries.

Such mobilisation of climate finance should represent a progression beyond previous efforts, the text said. It may provide small comfort to campaigners from developing countries who implored Parties to begin the phase out of fossil fuels and provide vastly improved access to funding for renewables.

The document highlights the persistent gap and challenges in technology development and transfer and the uneven pace of adoption of climate technologies around the world.

It further urges Parties to address these barriers and strengthen cooperative action, including with non-Party stakeholders, particularly with the private sector, to rapidly scale up the deployment of existing technologies, the fostering of innovation and the development and transfer of new technologies.

It also emphasizes the ongoing challenges faced by many developing country Parties in accessing climate finance and encourages further efforts, including by the operating entities of the Financial Mechanism, to simplify access to such finance, in particular for those developing country Parties that have significant capacity constraints, such as the least developed countries and small island developing States.


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