The policies of all powers are inherent in their geography.



The Carbon Border Adjustment Mechanism (CBAM) of the European Union (EU) refers. A tool to put a fair price on the carbon emitted on goods entering the EU. The EU would have us know.



Climate change is a&nbsp;globalproblem that needsglobal&nbsp;solutions.&nbsp;



Although caused by the indiscriminate few, it’s disproportionately affecting the innocent many.



‘Carbon leakage’ allegedly occurs when EU companies move carbon-intensive production to countries with less-stringent climate policies or when EU products get replaced by them.



So, African economies in dire need of rapid industrialization and accelerated energy access have to tread carefully lest they run foul of this policy.&nbsp;



There is an inherent risk of arbitrary application. As the policy is ‘to ensure the carbon price of imports is equivalent to the carbon price of domestic production’.



It bestows an ability to unilaterally decide the price to be paid for embedded carbon emissions and perhaps elegantly neutralize genuine competitive advantages.&nbsp;



Suave and smooth.



CBAM does not apply to electricity generated in the exclusive economic zones (EEZ) of EU member states. Such electricity&nbsp;“is EU origin”and thus exempt regardless of source?



Fairly convenient. Read on…



Fifty percent of all Teslas produced today are made in China. As is more than 80% of all Apple products.



Because an ecosystem of precision engineering skills exists with scale synergies.



If the iPhones were produced in the United States (U.S.), the additional cost would be $65.



Yet the political rhetoric is fever-pitched to ban China’s ‘anti-competitive’ behavior.



The Biden administration proposes to cut subsidies for vehicles that contain Chinese-made components.



How? China is the world’s leader in EV battery production accounting for two-thirds of global production.



The U.S. accounts for just 10%.



China leads the processing of critical minerals for EV batteries.



Neither sleight nor the swish of a hand will cut it even though it may get you to an oval-shaped office.



Those regulations threaten current automakers’ supply chains.&nbsp;



Enter Elon Musk, as the advisor to the incoming U.S. administration.



What do you think will happen?



Elephants will fight but compromise while the grass will suffer.



Financing commitments from U.S./EU sources into Africa come with stern warnings on ‘no China content’ and ‘only for carbon-friendly projects’. To the point of being banned otherwise.



Yet the pendulum on these swing around to the convenience of the West.



Oil companies will drill more than 40 exploration wells off Norway this year, including eight in the Barents Sea.



Deep sea mining is acceptable, marine life be damned.&nbsp;



Consequentialism (i.e. the ends justify the means) thrives.



An amoral West preaching morality has been the bane for centuries. It has led to an unrestrained narrative that the best is from the West while the rest can wait.



Indulging in unbridled hedonism to ensure a selfish future must be therefore questioned.



Hence the stirrings from the South, now backed by real money and strong economies are considered threats to the ‘world order ‘.



An order created by the few at the cost of the many.



If might is right, it’s time that becomes a fair duel?



We are grappling with global problems that have no geographical borders.



Be it the swathes of humanity swarming in for a better future to other shores. Or be it the effusions of industrial countries engulfing one and all, slowly but surely.



Time to have an equanimous response to usher in equity.



Rather than knee-jerk policies to appease your voters.



Singularly lacking is brutal action to allocate capital and knowhow from the land of plenty to the land of the needy where the majority of the youth lives and dreams.



Thus, Africa has to make its own friends and negotiate for itself collectively in this fragmented world of shallow schisms.



The good news is that it has choices.



It must exercise them well.

Tag: Sanjeev Gupta

FORBES AFRICA SOCIAL MEDIA

Expert-Speak: Time For An Equanimous Response To Usher In Equity