Climate change is deepening existing vulnerabilities and inequalities, disproportionately affecting vulnerable countries and communities around the world. African economies have been characterized by a heavy reliance on the export of raw materials, often failing to capture the full value of these resources. This traditional export model not only limits economic diversification but also perpetuates vulnerability to external shocks. It is critical to break this export commodity dependence through strengthening value chains to convert the raw minerals into finished products within the continent.

Initiatives using trade policy instruments to reach climate policy goals have strengthened. In Africa, there are efforts under the AfCFTA to promote Regional Value Chains for low carbon technologies. The EU has also put in place the Carbon Border Adjustment Mechanism while the United States has introduced the Inflation Reduction Act. The adoption of unilateral initiatives can have a positive environmental impact by providing incentives for adoption of stricter environmental standards. However, they can run counter to Africa’s aspirations for a just energy transition. Defining the role of the WTO in harmonizing and ensuring coherent and mutually supportive trade and climate rules will be critical.