Tackling Climate Change and Propelling a Green Transition under the African Continental Free Trade Area
The African Continental Free Trade Area (AfCFTA) agreement is expected to lift 30 million people out of extreme poverty by 2035. African countries are looking to take advantage of improved market access under the AfCFTA to increase production and trade through agriculture, fisheries (blue economy), forestry and mining activities. While increased production in pursuit of trade opportunities under the AfCFTA will contribute to greenhouse gas emissions, this can also form a key part of the solution in shaping the transition of African economies to green growth, climate mitigation and adaptation. This paper explores the opportunities and challenges of addressing climate change under the AfCFTA. It draws from ongoing global and African discourse on climate change, and from the growing body of research on the AfCFTA and environmental sustainability. It provides recommendations on how African governments, African stakeholders and development partners in the European Union and the United States of America can achieve climate change objectives through the AfCFTA.
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Table of contents
Contents
Summary 3
1. Introduction 8
2. Industrialization, the AfCFTA and climate change 10
2.1 Industrialization, AfCFTA and climate change 10
2.2 Decarbonizing energy at pace with Africa’s development objectives is key to sustainable industrialization and trade 12
2.3 Recommendations and points for policy consideration 16
3. Agriculture, fisheries, and climate 18
3.1. Impact of climate issues on sub-sector performance in Africa 19
3.2 International Impact 20
3.3 Addressing climate change effects under the AfCFTA 20
3.4 Recommendations and points for policy consideration 21
4. Services, the AfCFTA and climate change 22
4.1 AfCFTA Service Provisions 23
4.2 Addressing barriers to trade in climate-related services under the AfCFTA 23
4.3 Sustainable trade in energy services 24
4.4 Environmental services 25
4.5 Travel, Transport and Tourism services under the AfCFTA 26
4.6 Recommendations and points for policy consideration 27
5. The role of development partners in supporting environmental sustainability under the AfCFTA 28
Annex 1: Examples of AUC and selected RECs commitments on Climate 35
Annex 2: Indicative cluster of services related to climate change and the environment 37
References 39