Climate change and environmental degradation pose an existential threat to the world, escalating into a global emergency that transcends national borders. Fossil fuels (coal, oil, and gas) are the most significant contributors to global climate change, accounting for about 90% of total carbon dioxide emissions and more than 75% of world greenhouse gas emissions.
To address these difficulties and their severe consequences, world leaders at the UN Climate Change Conference (COP21) in Paris in 2015 enacted the historic Paris Agreement, a legally binding international treaty on climate change. Its main goal is to keep “the increase in the global average temperature to well below 2°C above pre-industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels”. According to the United Nations, over 140 countries are planning to transition to a net-zero world.
With the European Green Deal (EGD), the European Commission has taken the lead to make Europe the first climate-neutral continent by 2050, which was launched in December 2019. In 2021, the European Union (EU) adopted its first European Climate Law with the objective of reducing emissions by 55% by 2030 compared to 1990, as well as an additional intermediate target of 90% by 2040. The eight key policies of the EGD are illustrated in figure 1:
Figure 1: The European Green Deal (source: European Commission)
In order to achieve the decarbonization objectives, the EU is actively engaged to reduce emissions across all sectors from industry, energy, transport and farming. The EGD will impact imports into the EU market, as its primary purpose is to capitalize on the huge potential in global markets for low-emission technologies, sustainable products, services and imports, which will definitely have an impact on Mauritius.
In 2023, Mauritius domestic exports to Europe amounted to MUR 32.5 billion, representing a share 54% of exports to the world. The EU accounted for 73% of exports to Europe, with France, Spain, Italy, the Netherlands, and Germany as the top five markets. The principal export items include preserved tuna, cane sugar, denim clothes, t-shirts, live primates, medical instruments, and polished diamonds.
While all the policies and regulations pertaining to the EU green deal might not be directly enforceable in Mauritius, their non-compliance can impact exports to our EU buyers. Local manufacturing companies exporting to the EU, will have to adapt to the new regulations. The EU Delegation in Mauritius is currently implementing a Technical Assistance project in view of supporting the Mauritian firms in adapting to EU sustainability criteria, following a gap assessment undertaken in partnership with “l’Agence Française de Développement (AFD)”.
SUNREF (Sustainable Use of Natural Resources and Energy Finance) Mauritius, an initiative of AFD in partnership with the European Commission, Business Mauritius and local banks offers both financial and technical assistance, so that companies can seize the opportunities of green growth, increase their competitiveness, improve their brand image and get access to new markets.
The major impacts and implications that could be applicable to Industries of Mauritius
| The sectors of focus |
- Sectors that use most resources and where the potential for circularity is high e.g. electronics, textiles and furniture
|
| Sustainable Products Initiatives |
- Products sold on the EU market will need to meet higher sustainability standards
- EU Eco Labels for textiles that meet high environmental standards throughout their life cycle
- Adherence to REACH Regulation – aims at protecting human health and the environment against the harmful effects of chemical substances
- To remain competitive, companies will be required to invest in digitalisation and adoption of new technologies to reduce carbon emissions
|
| Circular Economy Action Plan (CEAP) - Ecodesign for Sustainable Products Regulation (ESPR) |
- Compliance with new product design and lifecycle requirements to ensure goods use less energy, last longer, can be easily repaired and recycled, contains more recycled content
- Growing secondary material market in Europe for textiles that is focused on reuse, repair, and return
- Minimising waste
|
| EU Corporate Sustainability Due Diligence Directive (CSDD)
|
- Companies who want to export to Europe are likely to be assessed by European importers on their practices when it comes to impact on human rights and the environment
- Digital Product Passport: is a tool aimed at enhancing transparency about a product’s environmental impact by offering relevant and comprehensive information about its life cycle
|
| Carbon Border Adjustment Mechanism (CBAM) |
- Exporters to the EU might need to pay a carbon price on certain goods to level the playing field with EU companies that are subject to carbon pricing under the EU Emissions Trading System (ETS)
|
| Farm to Fork Strategy |
- Ensuring sustainable food production
- Sustainable farming practices favouring organic farming
- Reduce dependency on pesticides and antimicrobials
- Nutrition labelling (organic certification, food safety, animal welfare standards etc.)
- Traceability and transparency for food safety and food hygiene
- Reduction of the food system’s carbon footprint
|
Overall, the EU Green Deal Industrial Plan is expected to drive significant changes in how and what Europe imports, aligning practices of its trade partners with its own ambitious environmental and sustainability goals. While it may create challenges for Mauritian exporters to the EU, the EU Green Deal also offers new opportunities for those who are fast to adapt to the evolving landscape. The EDB reassures operators of its engagement to work closely with all stakeholders to facilitate this transition phase.
