New EU requirements for sustainability in value chains risk undermining prospects of green transition and trust between the EU and Africa
New EU requirements for sustainability in value chains serve as an essential tool for securing financial streams towards the green transition in the Global South. At the same time, it can help build trust between Africa and Europe. However, this can only happen if the new regulations, as the ones we are now seeing from the EU, are followed by targeted efforts to help countries meet value chain requirements.
Without this help, the otherwise well-intentioned regulations could have to the opposite effect - a further erosion of trust between Africa and Europe. There is also a risk that funds to African countries will dry up, while African economies will likely shift towards value chains rooted in China, which do not have the same sustainability requirements. Without targeted and supportive efforts from the EU, these new requirements could therefore play directly into geopolitical interests in an undesirable way.
By Sofia Said Birch, ESG Manager, AP Pension and Jarl Krausing, Deputy CEO and International Director, CONCITO.
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