Africa was excluded from the design of the EU's Carbon Border Adjustment Mechanism, according to a senior United Nations economist. Hanan Morsi of the UN Economic Commission for Africa says the mechanism is becoming a trade and industrial policy tool, not just a climate measure, with serious implications for Africa's industrialization. While the overall impact on Africa is limited, aluminium and steel exporters in North Africa and Mozambique face significant compliance costs. African governments may consider domestic carbon taxes to retain revenue at home.