Why Africa's voice matters at this week's global shipping summit

You’re likely reading this article on a device assembled in Asia, using materials shipped from anywhere in the world.

After it was made, your phone or laptop most likely travelled where you are on a massive ship powered by one of the world’s largest diesel engines.

These ships, operating day and night, are part of a global network responsible for moving 90 percent of the world’s trade.

However, this maritime activity comes at a hefty environmental cost.

International shipping burns over 200 million tonnes of fossil fuels each year, contributing to the three percent of global greenhouse gas emissions emitted by the sector.

Shipping companies are now scrambling to clean up their act.

In 2023, they set ambitious goals to cut greenhouse gas emissions by 30 percent by 2030, relative to 2008 levels, and 80 percent by 2040.

The technology to make this transition exists wind propulsion, solar sails, and zero-emission fuels could be key drivers. Yet the road ahead is costly and complex, with many questions about who will bear the financial burden.

This week, the future of global shipping is being shaped in London, at the International Maritime Organization (IMO) summit.

The IMO, a United Nations agency, coordinates the global shipping industry's climate policies and regulations. This summit is key.

Crucial decisions will be made that will determine whether the shipping sector rapidly shifts away from fossil fuels or continues to limp along its current, high-carbon path.

Shipping isn’t just a global issue it’s deeply connected to local economies. Kenya, for instance, relies heavily on shipping for imports and exports.

The decisions taken at the IMO summit this week will affect countries like Kenya directly. It’s a fine balance between cutting emissions and protecting economic interests.

Africa’s stance at this week’s IMO summit is crucial. Shipping may be responsible for a significant share of global emissions, but its decarbonization presents both risks and opportunities for the continent.

For African nations, the key issue is the proposed global shipping levy.

The levy aims to charge shipping companies for the carbon they emit, with a suggested price of USD100 per tonne of carbon. If implemented, this could raise an estimated USD60 billion annually.

At first glance, this levy might seem like a positive step for reducing global emissions.

But there are major concerns. Many African countries fear that the levy could harm their economies.

The shipping sector is key for trade and imports, and higher costs could lead to increased trade barriers, disproportionately affecting developing nations.

Kenya, for example, is pushing for a fair distribution of the levy’s revenues. Ambassador Ali Mohamed, Kenya’s Special Envoy for Climate Change, said that "Decarbonizing 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 economic disparities.

We hope that the funds from the levy are redistributed fairly, flowing directly to developing nations, not in the form of loans, but funding for adaptation and resilience."

African countries are particularly sensitive to the impacts on trade, food security, and national income.

According to a report by the Africa Policy Research Institute, many developing nations will bear the brunt of these changes, especially those heavily reliant on maritime trade.

But despite these concerns, there are also opportunities for Africa to lead in the production of zero-emission fuels, like green hydrogen, which could help drive the continent’s economic growth while contributing to global decarbonisation efforts.

Studies show that the shipping sector’s decarbonisation could negatively impact economies, particularly those in Africa.

A 2023 report from the World Bank estimates that a universal carbon levy could generate up to USD60 billion annually, but the potential harm to developing countries could be significant if the revenues are not fairly distributed.

As it stands, the proposal remains unclear about how much of the levy will flow back to the countries most affected.

Africa has been calling for a portion of the levy to be used as climate finance, aimed specifically at helping countries adapt to climate change and build resilience.

This would help fund renewable energy projects, improve food security, and bolster climate resilience, particularly in Small Island Developing States (SIDS) and Least Developed Countries (LDCs).

The redistribution should ideally follow the “polluter pays” principle meaning funds should be directed toward countries that need it most, in the form of grants, not loans.

Faten Aggad, Executive Director of the African Future Policies Hub, explained the need for a fair redistribution mechanism: "For any measure to be acceptable, the polluter pays principle should remain at the center of the negotiations."

As the IMO summit progresses Africa is demanding a transparent revenue distribution system that reflects the climate, social, and economic needs of developing countries.

If a redistribution plan is agreed upon, the funds should be provided as grants, not loans, ensuring that African nations are not burdened with additional debt.

Africa also seeks safeguards to ensure food security isn’t further compromised by the levy and to mitigate its disproportionate impact on African economies.

Another key ask is for non-interest-bearing capital to fund Africa’s green transition. This capital should be flexible enough to support a variety of projects not just in the shipping sector, but also in areas like renewable energy and resilient agriculture.

 Additionally, African nations are calling for partial or temporary exemptions on exports from Africa, recognizing the continent’s unique challenges and vulnerabilities in the global economy.

As the summit unfolds, all eyes are on whether Africa’s priorities will be acknowledged.

The continent is not coming to the table empty-handed. Africa’s youthful population, vast natural resources, and growing markets offer significant potential for green investments.

The shipping sector’s transition to zero-emission fuels could create new opportunities for economic development, particularly in renewable energy.

However, the challenges are also substantial. Africa’s shipping fleets are underdeveloped, and many countries lack the infrastructure and financial support to make the transition.

Stanley Raja Korshie Ahorlu, President of the Ghana Chamber of Shipping, said that Africa’s priorities go beyond emissions reduction: "Africa has needs woeful fleet ownership, lack of ship finance, low representation in the global seafarer community, underdeveloped port infrastructure, and energy poverty.

He said, "A win-win outcome would be one that results in high-ambition climate action and addresses some of the needs enumerated above."