Africa’s position on the shipping carbon levy

The imperative of decarbonization in global shipping has led the International Maritime Organization (IMO) to debate a carbon levy that could raise billions annually to support the transition to zero-emission fuels. This move presents Africa with key opportunities in climate finance and green fuel production, but the continent also faces significant risks. Eldine Chilembo Glees, a Maritime Policy Consultant, highlighted the importance of incentivizing the transition to zero-emission fuels through economic and technical measures during an interview with CNBC Africa. The discussions at the IMO focused on rewriting regulations and laws to enforce a pricing mechanism on greenhouse gas emissions for shipping, aiming to drive a just and equitable transition that supports less developed countries and small island states. The proposed carbon levy is not expected to directly impact trade dynamics and food security in Africa; instead, it signifies the necessary transition to phase out fossil fuels. Chilembo emphasized the importance of immediate and decisive action to reduce greenhouse gas emissions to prevent the worst impacts on climate and food security. While the carbon levy poses economic implications, the focus remains on accelerating decarbonization to meet Paris Agreement targets. The risks of relying on this funding were also debated at the IMO, stressing the need for African delegates and vulnerable countries to vocalize their needs regarding revenue distribution and the impact of regulatory measures on social and economic development. The IMO's regulatory power over the shipping industry positions it to enforce compliance through port state control and flag state requirements, ensuring that signatories comply with the proposed measures. The carbon levy is seen as the most effective policy to drive the shipping energy transition while supporting a just and equitable transition for vulnerable states. Africa's abundant renewable energy sources position the continent well to transition away from fossil fuels, with a focus on domestic shipping and fishing sectors as key economic drivers that require infrastructure support. The conversation further delved into balancing ambitious climate action with the immediate economic needs of developing nations, particularly in Africa. The IMOs target for net-zero emissions by 2050 underscores the importance of a just and equitable transition framework to avoid countries buying credits that permit continued pollution. Various proposals, including a global fuel standard, flat levy, or credit trading scheme, are being considered, with a focus on revenue distribution and the impact on African economies. The debate at the IMO reflects a conscious effort to ensure that the shipping industry takes responsibility for its pollution and contributes to global decarbonization efforts. The interview with Eldine Chilembo Glees shed light on the complexities and opportunities for Africa in responding to the shipping carbon levy, emphasizing the need for a fair and sustainable transition that supports economic development while combating climate change.