Online Reporter
Judith Phiri
THE country’s trade promotion body, ZimTrade, has called on businesses to prepare for the new cost of carbon trade, as global trade is undergoing its most consequential rules change in decades.
This comes as the European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM) has moved from policy paper to a legal reality.
For Zimbabwean exporters, it signals a fundamental shift in the cost of accessing one of the world’s most lucrative markets.
CBAM is a carbon pricing tool that levies a charge on the embedded carbon emissions of specific imported goods.
If a product releases more carbon dioxide than EU standards allow, the importer pays a carbon levy at the EU border.
This development comes at a time Zimbabwe’s exports to the EU have surged, reaching approximately US$559 million in 2025, with a positive trade surplus exceeding US$242 million.
Key exports include tobacco, horticultural products (blueberries, peas, oranges), and minerals like ferrochromium, often enjoying duty-free, quota-free access under the Economic Partnership Agreement.
In its latest newsletter, ZimTrade said CBAM is the EU’s way of ensuring that its own industries are not undercut by cheaper, carbon-intensive imports from countries with weaker climate policies.
“The mechanism entered its transitional phase in October 2023 and enforcement began in January 2026. Importers are required to report the embedded emissions of covered goods without yet paying a financial charge,” said ZimTrade.
“Zimbabwe is not navigating this alone. Across Africa and the Global South, governments and exporters are grappling with CBAM’s implications.”
ZimTrade said the African Union has raised concerns about CBAM’s impact on developing economies, arguing it constitutes a trade barrier that undermines preferential access under agreements like the African Continental Free Trade Area (AfCFTA) and the EU-Africa partnership framework.
The sectors covered under CBAM include steel, iron, cement, aluminium and fertilisers.
The EU has signalled that this list will expand to include organic chemicals, polymers and potentially agriculture-linked products.
“Zimbabwe’s export portfolio sits directly in the EU’s evolving green trade agenda,” added ZimTrade.
According to the Zimbabwe National Statistics Agency (ZimStat) and the Reserve Bank of Zimbabwe, the EU remains among Zimbabwe’s top three export destinations for minerals and agricultural commodities.
As the EU considers extending CBAM to downstream metal products and organics, Zimbabwe’s exposure grows substantially.
For many Zimbabwean exporters, the most immediate threat is not the carbon tariff itself, but the cost of becoming compliant.
ZimTrade said companies must invest in calculating and independently verifying the greenhouse gas emissions embedded in their production processes.
“For firms without existing environmental management systems, this means spending on auditing infrastructure, technical expertise and third-party certification — costs that most SMEs (small and medium enterprises) are ill-equipped to absorb,” the trade body said.
“CBAM demands granular, product-level emissions data, yet most Zimbabwean exporters lack both the digital infrastructure and the skilled personnel to generate such records reliably.”
ZimTrade said it was ready to help Zimbabwean exporters through its export development programmes and advisory support on EU market compliance requirements.
GlobalG.A.P. certified trainer and ZimTrade associate trainer Mr Leo Maposa said European buyers were beginning to assess not only the quality of products, but also how they are produced.
“Farmers supplying export markets may face pressure from buyers who prefer suppliers with low carbon footprints. Carbon efficiency is gradually becoming part of export competitiveness,” he said.
“How much fertiliser is used on the crop? What type of energy powers irrigation systems? Are crop residues burned? Is there deforestation involved? These are some of the questions we are now asking as part of risk assessments for GlobalG.A.P. certification.”
Mr Maposa said CBAM directly affects fertiliser production because it is energy-intensive and releases large amounts of greenhouse gases.
He said farmers who adopt climate-smart agriculture practices will likely gain better access to premium export markets.
Zimbabwe National Chamber of Commerce Matabeleland Chapter former vice president Mr Louis Herbst said CBAM represents a major shift in global trade.
“While its environmental objectives are understandable, developing economies have a legitimate concern around fairness, economic readiness and the geopolitical implications of how climate policy is being implemented,” he said.
“Developed nations industrialised for decades with minimal environmental restrictions. Developing countries are now expected to compete under stricter rules without equal access to funding, technology or the infrastructure needed for transition.”
Mr Herbst said there was validity in the argument that richer economies had the advantage of shaping global trade and were now imposing regulations that smaller economies must rapidly adapt to.
He argued that elements of the current carbon policy environment may indirectly preserve the advantages of established industrial economies.
“A fully circular global economy could reduce dependency on traditional industrial powers and shift parts of economic influence towards emerging markets rich in raw materials and growth potential, such as Zimbabwe,” he said.
“Stricter carbon compliance frameworks risk being viewed not only as environmental policy, but also as instruments that help maintain advantages within the existing linear economic structure.”
Mr Herbst said the EU maintains CBAM is necessary to prevent “carbon leakage”, where production shifts to countries with weaker environmental standards.
“If carbon compliance costs are imposed without practical assistance, smaller exporting economies like Zimbabwe risk reduced competitiveness and slower industrial growth,” he said.
“A balanced solution would require developed economies to pair carbon regulations with meaningful transition support for developing nations, including climate financing, technology transfer, renewable energy investment, carbon accounting systems and phased implementation timelines.”
Mr Herbst said for Zimbabwean businesses, CBAM compliance was becoming a commercial necessity.
He said exporters will need to improve energy efficiency, modernise production systems, measure emissions accurately and strengthen sustainability reporting to remain competitive.
“Long-term success will depend on ensuring emerging economies are given realistic pathways, funding and technological support to participate competitively in the evolving global trade system,” he said.
Mr Reginald Shoko, an economic analyst, called on Zimbabwean exporters to start accurately measuring and reporting their products’ embedded carbon.
“They must invest in renewable energy, energy efficiency and cleaner production processes,” he said. “Reducing emissions means switching to solar or hydro power, upgrading boilers and kilns, and adopting low-carbon raw materials.
“To protect local industry, Zimbabwe could implement its own carbon pricing mechanism or a domestic border carbon adjustment, levelling the field while spurring a cleaner, competitive manufacturing base.”
