A top official of the African Petroleum Producers Organisation (APPO), which comprises African oil producing countries, has cautioned against the potential impact of the European Union’s planned Carbon Border Adjustment Mechanism (CBAM).
Speaking at AOW – Investing in African Energy conference in Cape Town on Tuesday, Omar Farouk Ibrahim, Secretary General of Congo-Brazzaville-headquartered APPO warned of the potential consequences of the EU’s CBAM on African economies, urging representatives attending the upcoming energy conference in Baku to push back against the tax on carbon-intensive imports.
He argued that such measures could hinder Africa’s industrial and economic development and called for developed nations to take responsibility for their historical emissions, rather than imposing trade barriers on developing countries.
He called for a moratorium on CBAM and advocating for a fairer approach to the global energy transition, stating: “Africa cannot develop without fossil fuels. Africa deserves better.”
Ibrahim also outlined progress on APPO’s African Energy Bank initiative, aimed at addressing the withdrawal of traditional financiers from African oil and gas projects due to climate concerns. He announced that an agreement to establish the bank has been signed, with ratification underway in several member countries, adding that Nigeria has been chosen to host the bank’s headquarters.
The 18 APPO member countries are Algeria, Angola, Benin, Cameroon, Chad, Congo, DR Congo, Côte d’Ivoire, Egypt, Ghana, Equatorial Guinea, Gabon, Libya, Namibia, Niger, Nigeria, Senegal, and South Africa.
(Editing by Anoop Menon) (anoop.menon@lseg.com)
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