Kenya joins high seas battle for emissions levy at IMO

Kenya has declared its support for adopting a shipping levy at the International Maritime Organisation (IMO).

In a joint open letter released during the International Maritime Organization’s Marine Environment Protection Committee (MEPC 83), Kenya’s Special Climate Envoy Ali Mohamed joined over 50 nations calling for a universal greenhouse gas (GHG) levy on shipping.

The signatories represent more than two-thirds of the global fleet. In the letter they stated that global emissions levy is the most effective and fair way to drive decarbonisation in the maritime sector.

This decision could reshape the future of maritime trade. This week, negotiators at the IMO in London face a critical test.

Either they agree on tough rules to cut emissions, or they stall progress and risk deeper climate and economic shocks.

Shipping is responsible for nearly 3 percent of global greenhouse gas emissions. These emissions are rising. The sector burns more than 200 million tonnes of fossil fuel each year. If left unchecked, its pollution will undermine global climate goals.

Kenya's support marks a major step. Climate envoy Ali Mohamed joined ministers from France, Spain, Seychelles, and the Marshall Islands in backing a universal levy on the lifecycle emissions from shipping fuel.

The proposed price floor is at least USD150 per tonne of CO2. This would apply to all emissions from the first tonne and rise over time.

The aim is clear: accelerate the uptake of zero-emission fuels and technologies. Kenya argues that this move will help level the playing field for clean energy in the sector while raising funds to support vulnerable nations.

"This is a solution for humanity, not just for ourselves," Tuvalu’s Minister Simon Kofe said during the negotiations.

IMO’s 2023 strategy set a net-zero emissions target by around 2050.

It also set interim checkpoints: a 30 percent cut by 2030 and 80 percent by 2040, compared to 2008 levels. These goals require rapid policy change.

Efficiency alone won’t deliver. The IMO's Carbon Intensity Indicator (CII), which tracks carbon emissions per tonne-mile, aims for a 40 percent efficiency improvement by 2030.

But global shipping demand could rise 60 percent in that time. Even with more efficient ships, total emissions could still increase.

That’s why a greenhouse gas price is essential. Ambassador Albon Ishoda of the Marshall Islands told IMO delegates that this is not about raising revenue. "A GHG price is a tool to drive rapid emissions reduction," he said.

"The revenue is a byproduct."

Small island states in the Pacific and Caribbean, alongside Kenya and other African nations, are pushing for the revenue to support a Just and Equitable Transition (JET).

That means funding clean energy research, green port infrastructure, and capacity building in developing countries.

But there is opposition. Some large economies want weaker policies. They propose loopholes such as emissions exemptions and credit trading systems. These would dilute the price signal and delay meaningful change.

"We didn’t come to London to rubber-stamp a diluted compromise," Ishoda said. The 6PAC+ alliance — made up of Pacific island states — rejects schemes that avoid real emissions cuts.

Kenya's stance aligns with these countries. The move signals a shift in Africa's role in climate diplomacy. Rather than waiting for support, Kenya is co-authoring the rules.

Data supports this approach. Independent assessments show a levy is the most cost-effective way to cut shipping emissions.

It also offers price certainty, which can unlock investment in green hydrogen, ammonia, and wind-assisted propulsion systems.

Several firms are ready to act. Maersk, one of the world’s largest shipping lines, has already ordered methanol-fueled ships.

But the company and others need assurance that clean fuel investments won’t be undercut by cheaper dirty fuel.

IMO Secretary-General Arsenio Dominguez opened MEPC 83 by calling it "a pivotal moment in our collective efforts to address climate change." He urged delegates to follow through on their commitments.

Negotiations remain tense. Talks are being mediated by Singapore. A new proposal includes a two-tier pricing system.

The 6PAC+ group says it could support it but only if it covers 100 percent of emissions and starts at no less than USD150/tonne.

Failure to agree this week will weaken the IMO’s credibility. It will also delay climate action and expose low-lying countries to rising sea levels and storms. For Kenya, delays mean prolonged droughts, crop failure, and food insecurity.

Climate envoy Ali Mohamed has stressed that the shipping sector must not become a climate laggard. Kenya is betting that ambitious global rules will both cut emissions and unlock new green industries.

The decisions taken this week will be legally binding. They will affect every ship, every port, and every economy. Kenya is pushing for rules that match the urgency of the climate crisis.

Minister Ralph Regenvanu of Vanuatu said: "If this is adopted here, it will be a game changer for climate."