South African President Cyril Ramaphosa has called for a more balanced global trade system that supports developing economies as they transition to low-carbon industries, warning that current climate-related policies risk placing an unfair burden on countries that are still building their economic capacity.
Speaking at the Spain–South Africa Business Forum in Madrid during his working visit to the European nation, Ramaphosa reaffirmed his country’s commitment to climate action but stressed that global trade rules must evolve to reflect the realities faced by emerging markets.
“We are not opposed to the principle of carbon accountability,” he said, but added that new frameworks must not “inadvertently punish developing economies for emissions they did not historically cause.”
His remarks come at a time when many advanced economies, particularly in Europe, are implementing stricter climate-related trade policies such as carbon border taxes. While these measures are designed to reduce global emissions, Ramaphosa warned that they could undermine growth prospects in countries that rely heavily on industrial expansion and exports to drive development.
The South African leader argued that climate action and economic growth must not be treated as opposing priorities. Instead, he called for a cooperative approach in which developed nations provide financial and technological support to help poorer countries meet environmental targets without sacrificing their economic progress.
“What we ask is that climate measures be accompanied by the necessary climate finance, technology transfer and transitional arrangements that the Paris Agreement and successive COP commitments have promised,” Ramaphosa said.
His position reflects a broader sentiment across the Global South, where leaders have increasingly raised concerns that climate regulations are being shaped in ways that disproportionately affect developing economies. Many of these countries contribute less historically to global emissions but face significant pressure to adopt costly green technologies.
Beyond climate concerns, Ramaphosa used the forum to push for deeper trade and investment ties between South Africa and Spain, highlighting the growing economic relationship between the two countries. Bilateral trade reached approximately €2.8 billion in 2025, with South African exports rising by 10% compared to the previous year.
He described Spain as one of South Africa’s fastest-growing trading partners within the European Union and noted that more than 150 Spanish companies are currently operating in South Africa, supporting over 20,000 jobs across sectors including renewable energy, infrastructure, technology and tourism.
However, Ramaphosa cautioned that the trade relationship remains too concentrated in a narrow range of exports, making it vulnerable to global market shifts. He called for diversification into new sectors such as critical minerals, green industrialisation and advanced manufacturing, which are expected to play a central role in the global energy transition.
“Even though our trade relationship is strong, it remains structurally imbalanced,” he said, emphasising the need to build more resilient and inclusive value chains.
A key focus of his address was the opportunity for collaboration in clean energy technologies, particularly hydrogen fuel systems. South Africa holds some of the world’s largest reserves of platinum group metals, which are essential for hydrogen production and other green technologies. By combining these natural resources with Spain’s technological expertise and investment capacity, Ramaphosa suggested that both countries could play a leading role in shaping the future energy economy.
The president also presented a pipeline of 85 investment-ready projects valued at over €62 billion, spanning sectors such as energy, infrastructure, digital connectivity and manufacturing. These projects are intended to attract foreign investment while supporting South Africa’s broader industrial transformation agenda.
At the heart of his message was a call for a more inclusive global economic system. Ramaphosa argued that as the world shifts toward cleaner energy and sustainable development, international cooperation will be essential to ensure that no country is left behind.
“As we expand trade, we must ensure that the rules governing global commerce are fair and support development,” he said.
His remarks underscore the growing tension between climate ambitions and economic realities, particularly in developing regions where industrial growth remains a priority. As global leaders continue to negotiate climate policies and trade agreements, the challenge will be finding a balance that advances environmental goals while allowing emerging economies to thrive.
For South Africa and many of its peers, that balance will depend not only on policy changes but also on the willingness of developed nations to provide the financial and technological support needed to make the transition both achievable and equitable.
