Mozambique's aluminium exports to the EU may face carbon taxes, it begins exporting LNG

The EU's planned Carbon Border Adjustment Mechanism (CBAM) poses a significant risk to the southern African nation, Mozambique, primarily because of its aluminium exports to the EU.

The metal aluminium is the country's most considerable export good, which accounts for up to 25 per cent of export earnings, worth US$1.4 billion.

According to our report from the region, Mozambique's aluminium exports could be taxed between EUR 50 - 350 million per year under the proposed CBAM, depending on the methods used to estimate carbon intensity.

On the contrary, Mozambique also has incomparable natural energy resources that could impressively contribute to a green energy transition domestically and in the Southern African region.

Filipe Nyusi, the President of Mozambique, announced the first export of Liquefied Natural Gas (LNG), from the Rovuma Basin, off the coast of the northern province of Cabo Delgado.

Nyusi revealed that in 2016 the government approved the project's development plan, and in 2017 a 'Final Investment Decision' was made. During the time of the floating platform's construction, the government believed the first export would occur in 2022.

"Everything has worked out. Today, Mozambique has entered the annals of world history as one of the exporters of liquefied natural gas. This would contribute to energy security in countries with significant natural gas consumers”, Nyusi added.