
African exporters face mounting costs and potential market losses as European climate regulations reshape international trade. Kenya’s flower industry, for example, faces pressure from European retailers seeking to reduce emissions associated with air freight, despite the relatively low carbon footprint of some African-grown produce. The European Union’s deforestation rules, which require proof that certain commodities were not produced on recently deforested land, could also threaten African produce. The rules could put almost two-thirds of Ethiopia’s coffee exports to the EU at risk. Meanwhile, the Carbon Border Adjustment Mechanism imposes carbon-related costs on certain industrial imports, potentially disadvantaging African producers with emissions-intensive manufacturing. Some businesses are exploring alternative markets in Asia and the Middle East, while others are looking at sea freight.
