Africa-Press – Namibia. As the global push for decarbonisation accelerates, the European Union’s Carbon Border Adjustment Mechanism (CBAM) is emerging as a key policy shaping international trade.
The CBAM imposes carbon tariffs on high-emission imports to ensure they meet the EU’s climate standards and to discourage carbon leakage, the practice of outsourcing manufacturing and its associated emissions to countries with weaker environmental regulations.
With the EU’s CBAM set for full implementation by 2026, the UK planning to introduce an even broader version by 2027, and Australia reviewing its national policies to address carbon leakage, this evolving landscape presents both a challenge and a strategic opportunity for countries like Namibia as they seek to maintain and expand global trade access.
Namibia is uniquely positioned to benefit. With exceptional solar and wind energy resources, ample land, and strategic access to international shipping routes, the country has the potential to become a key supplier of clean energy and green industrial products. Leveraging these natural advantages, Namibia can align with CBAM and become a preferred trade partner for Europe and other carbon-conscious markets.
Realising this potential, however, requires deliberate policy action, infrastructure investment, and support for energy innovation.
Namibia’s Renewable Energy Advantage
Namibia boasts some of the world’s highest solar irradiation levels and strong wind potential, especially in coastal regions such as Lüderitz. The co-location of these resources allows for complementary energy generation, solar by day, wind by night, supporting continuous renewable energy supply and reducing the need for costly battery storage.
This combination positions Namibia as a leading candidate for the production of green hydrogen, ammonia, and other renewable-based products critical to decarbonising global industries. With the EU prioritising low-carbon imports under CBAM, Namibia’s capacity to produce clean energy affordably could establish it as a strategic energy partner.
Key Decarbonisation Technologies
To become CBAM-compliant and globally competitive, Namibia must invest in the following core technologies:
Namibia’s diverse renewable energy resources can drive large-scale green energy production and power industrial processes and support energy security. Uranium resources also offer long-term potential for clean nuclear power.
Electrolysers powered by renewables can produce green hydrogen, which is easily converted into ammonia for transport. This positions Namibia to export clean fuels to the EU, which is actively seeking CBAM-compliant hydrogen imports.
Green ammonia can be used to produce low-carbon fertilisers, reducing reliance on imported, fossil-based alternatives and enabling exports aligned with global climate standards.
While prevention remains key, CCUS can mitigate emissions from hard-to-abate sectors like mining and cement manufacturing. It also supports government initiatives to build a carbon market under Article 6.2 of the Paris Agreement.
Storage systems are essential for grid stability and ensuring reliable renewable electricity, which is critical for sustaining CBAM-compliant industrial activity.
Transitioning from fossil fuels to electricity in mining operations and transportation can reduce emissions across value chains and enhance CBAM competitiveness.
Namibia’s mining sector has the potential to lead in sustainable practices by integrating green hydrogen into ore processing. The HyIron Oshivela project’s successful production of its first hydrogen output in March 2025, followed by its official inauguration by President Netumbo Nandi-Ndaitwah in April, marks a major milestone in the production of CBAM-compliant direct reduced iron (DRI), a value-added export product.
Namibia as a Green Shipping Hub
Namibia’s seaports and growing hydrogen economy also make it a leader in green shipping. With the International Maritime Organization targeting net-zero emissions by 2050, there’s increasing demand for low-carbon marine fuels like green ammonia and methanol.
Projects like Cleanergy Solutions Namibia, a joint venture between CMB.TECH and Ohlthaver & List, are developing hydrogen-powered vessels and renewable infrastructure, including a green ammonia bunkering hub and terminal at Walvis Bay’s north port. CMB.TECH’s recent announcement of its partnership with Fortescue Metals Group to ship Australian ore using ammonia-powered vessels to global destinations underscores how Namibia’s seaports are rapidly emerging as strategic hubs in international shipping. The Mediterranean Shipping Company (MSC), the world’s largest shipping company, has also officially designated Namibia as a southern African logistics hub, highlighting its strategic importance in sustainable maritime trade.
As CBAM reshapes global logistics, Namibia’s low-emission ports and green fuels will make it an attractive player in decarbonised trade routes.
Creating an Enabling Environment
To harness this potential, government leadership is essential. Key steps include:
Clear Policies and Regulatory Certainty:
Investors need stable frameworks, streamlined permitting, and competitive energy tariffs to commit capital to large-scale green projects.
Infrastructure Investment:
Upgrading ports, transmission lines, rail and developing common user infrastructure (CUI) around green hydrogen hubs is crucial. Public-private partnerships (PPPs) can help build export-ready infrastructure aligned with CBAM standards.
Support for Pilot and Commercial Projects:
Government incentives and subsidies can attract early-stage investments in hydrogen, CCUS, renewable energy, and energy storage technologies.
International Partnerships:
Namibia must expand collaborations with the EU, Germany, and others to secure off-take agreements and long-term technology support.
Skills Development:
A trained workforce is vital. Investments in STEM education and vocational training will ensure Namibians can participate in and benefit from the emerging green economy.
Namibia is at a pivotal moment in the global energy transition. Its natural endowments, growing green hydrogen sector, and strategic geographic position provide a rare opportunity to lead in sustainable industrialisation.
With CBAM transforming global trade, Namibia can secure its role as a preferred partner by investing in decarbonisation technologies and creating a business-friendly environment. The next decade is critical. By acting now, Namibia can decarbonise its economy, boost exports, create jobs and help drive the global shift to clean energy.
Source: neweralive
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