As the shipping industry edges closer to adopting a global carbon levy, African countries are making a strong case for fairness, equity, and opportunity in the race to decarbonise international shipping.
From April 7 to 11, member states of the International Maritime Organisation (IMO) are meeting in London to negotiate the details of a proposed levy on shipping emissions — a key part of global efforts to drive down the sector’s annual one billion tonnes of greenhouse gas emissions to net zero by 2050.
Shipping currently accounts for about 3% of global emissions. If adopted, the levy could reshape global trade, generate climate finance, and unlock new industrial opportunities — but it also raises tough questions for developing economies, particularly in Africa.
A $60 Billion Opportunity—But Who Benefits?
According to the World Bank, a universal shipping levy set at $100 per tonne of emissions could raise around $60 billion annually. For African countries, that’s both an opportunity and a potential risk.
A recent report by the Africa Policy Research Institute (APRI) notes that while Africa could emerge as a key player in supplying zero-emission fuels like green hydrogen, many African states fear that the additional shipping costs could worsen existing economic vulnerabilities, affecting trade, food security, and national incomes.
Studies, including the IMO’s Comprehensive Impact Assessment, have warned that without safeguards, the levy could disproportionately harm developing economies.
Credit: Prosertek
Africa’s Demands: Fairness, Grants, and Climate Finance
As talks intensify, African negotiators are calling for a fair share of the revenue generated from the levy to be channelled directly to developing countries — and crucially, in the form of grants rather than loans.
Their key demands include
• Transparent revenue distribution reflecting climate, social, and economic needs
• Grant-based climate finance to avoid adding to debt burdens
• Safeguards to protect food security and vulnerable sectors
• Funding Africa’s broader green transition, beyond just shipping
• Consideration of partial or temporary exemptions for African exports
Kenya’s Special Envoy for Climate Change, Ambassador Ali Mohamed, emphasised the delicate balance Africa is seeking.
“Decarbonising shipping isn’t optional but an imperative for a sustainable global trade system. However, African economies cannot afford charges that inflate trade costs and widen global disparities,” he said.
Not Empty-Handed
Africa’s negotiators are also keen to position the continent as an essential partner in the shipping industry’s green transition.
President of the Ghana Chamber of Shipping, Stanley Raja Korshie Ahorlu, pointed to Africa’s youthful population, vast renewable energy potential, and growing trade market.
“Africa is not coming to the negotiating table empty-handed,” Ahorlu said. “A win-win outcome would result in high-ambition climate action and address Africa’s critical needs.”
While the IMO negotiations are ongoing, with formal adoption expected in 2025, African countries are uniting around a common message: climate action must go hand-in-hand with climate justice.
As Faten Aggad, Executive Director of the African Future Policies Hub, put it:
“The polluter pays principle must be at the heart of this levy — with substantial redistribution of the revenue to developing countries through grants that fund energy projects and cushion vulnerable communities.”
Nigeria, like many African nations, has also expressed support for the levy — provided the revenues help drive Africa’s green transition and build resilience across its economies.
As talks continue in London, the next few months will reveal whether Africa’s demands for fairness, equity, and opportunity will shape the final design of this landmark policy.
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