Displaying items by tag: European Green Deal

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.

The Carbon Border Adjustment Mechanism (CBAM) is a headline policy initiative of the European Green Deal. One of the drivers of the CBAM is that carbon emissions should have a price, and the CBAM is intended to “align the carbon price on imports with that applicable within the EU”. This policy brief provides an initial assessment of the CBAM and its implications for the global economy and South Africa-EU trade. South Africa’s trade with the EU will be greatly affected by the CBAM and other EU climate regulations. The South African government and exporters to the EU need to put in place measures and mechanisms to ensure trade resilience in a low-carbon global economy. These measures must have the just transition at their core to ensure that South Africa’s move to a low-emissions economy is inclusive, just and equitable, and protects communities and workers so they are not adversely affected.

The brief was funded by the Department of Trade, Industry and Competition. It draws on a report by TIPS, Tralac and Trade Advisory on The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy, funded by the European Union and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU).

Other Policy Briefs

Sustainable complexity: Managing export regulations in the European Green Deal

This policy brief is an initial assessment of the European Green Deal, examining what is currently known about the risks it creates for South African exporters. It provides a summary of what regulatory changes are expected in the EGD, what risks these changes pose for South African firms, and what can be done to begin preparing for these changes.

The brief was funded by the Department of Trade, Industry and Competition. It draws on a report by TIPS, Tralac and Trade Advisory on The European Green Deal: Context, challenges and opportunities for South African SMEs operating in the green economy, funded by the European Union and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU).

Other Policy Briefs

European Green Deal: The Carbon Border Adjustment Mechanism and implications for South African and European Union trade 

The European Green Deal (EGD) is a is a set of policy initiatives by the European Commission with the overarching aim of making Europe climate neutral by 2050. These policy initiatives aim to make all sectors of the European Union’s economy fit to contribute to the European Union reaching its climate targets by 2030 in a fair, cost-effective and competitive way. The EGD proposes several action plans and initiatives in priority areas, which include energy, land, biodiversity, clean air, sustainable foods and buildings, among others. South African exporters to the European Union will need to adapt to this change, to assure their long-term competitiveness in a changing market. This study provides an initial look at the EGD and its potential implications for South African trade with the European Union. The particular proposed headline initiative of the EGD in the form of a Carbon Border Adjustment Mechanism is unpacked more specifically in this study, while an analysis of potential opportunities to expand trade associated with “environmental goods” products are also highlighted.

Media release

The European Union’s Green Deal (EGD): A call to action for South African exporters