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Sustainable Growth

Friday, 16 February 2024

The European Green Deal (EGD) and its implications for African Trade

  • Year: 2023
  • Organisation: TIPS
  • Author(s): Seutame Maimele
  • Countries and Regions: Africa

The European Green Deal (EGD) is a set of policy initiatives by the European Union (EU) with the overarching aim of making Europe the first continent to reach climate neutrality by 2050. The purpose of this study is to analyse the implications of the EGD on African trade. The objectives include understanding the EGD in the African context, and analysing affected African traded commodities and the implications that stem from its introduction. The methodology included a desk review, document analysis, and conducting extensive data analysis using an exposure and vulnerability methodology.

Thes study has five parts.The first part provides an overview of the European Green Deal, and the second part highlights how Africa trades with the EU. The third part highlights the implications for African trade. The remaining two parts examine international responses – what other countries are doing to respond to the EGD and their implications for Africa; and suggested policy responses the African continent can pursue to limit its exposure and vulnerability to any negative trade effects of the EGD.