COP28 marked a turning point in recognising the growing interconnectedness between climate and trade with the first-ever Trade Day on 4 December 2023. While past COPs touched upon trade-related issues like technology transfer and carbon markets, the use of trade policy to achieve climate goals remained largely unaddressed.

Africa's position on becoming a green industrial hub was emphasised in the Nairobi Declaration – an outcome of the Africa Climate Summit held in September 2023. The adaptation imperative for Africa, given the anticipated temperature increases, makes the deepening of intra-African trade within the African Continental Free Trade Area (AfCFTA) even more critical. But equally critical is the imperative of ensuring that Africa is part of the climate solution, as a green industrial hub.

This policy brief, developed in the wake of COP28, analyses the conference's key outcomes and their implications for the AfCFTA’s ongoing implementation. It looks ahead to COP29 and examines how outcomes may shape Africa's green structural transformation and intra-African trade, while also considering the challenges posed by both climate change and policy responses from advanced economies.

Report by the Overseas Development Institute