Africa calls on IMO to introduce global emissions levy on shipping

Africa is calling on the International Maritime Organization (IMO) to introduce a global emissions levy on shipping to promote green fuels, ensure a just energy transition and tackle climate injustice.

Photo: Ocean Rebellion / Phaata

James Mnyupe – economic adviser to the President of Namibia and Head of Namibia’s Green Hydrogen Programme – and Cynthia Kariuki from the African Green Hydrogen Alliance Coordination Office bring Splash readers an African perspective on the crucial green talks taking place at the International Maritime Organization (IMO) headquarters in London this week.

African countries are disproportionately affected by the devastating impacts of climate change, despite their historically low contribution to global warming greenhouse gases.

International shipping currently accounts for 3% of global emissions. The UN agency that coordinates the industry – the International Maritime Organization (IMO) – and its member states have a once-in-a-generation opportunity to agree a meaningful emissions levy. This could be the turning point in the industry’s transition away from heavy oil fuels and towards cleaner alternatives, in line with its goal of net zero emissions by 2050.

If the IMO makes bold decisions at its meeting this April, ships will soon be running on green fuels produced from renewable electricity in countries such as Egypt, Kenya, Morocco, Mauritania, Namibia and South Africa. On the other hand, if the IMO and its member states fail to show leadership, the international shipping industry is likely to continue relying on fossil fuels – despite the availability of significantly cleaner options.

Some ships are already running on liquefied natural gas (LNG), which can reduce emissions by 10% to 19%. Biofuels are also possible – produced from agricultural products – but require large areas of land, which can compete with food production. The cleanest solution currently is to use renewable energy to electrolyze water into hydrogen and oxygen, which is then used to produce ammonia – a fuel that can be used to power ships.

However, at present, green ammonia and other e-fuels such as green methanol are still much more expensive than heavy fuel oil. As large-scale renewable energy facilities are built across Africa, the price of green fuels will gradually fall.

To promote the scale-up of these fuels, there is growing consensus that the IMO should introduce an emissions levy. It is important that this levy is high enough to incentivise the use of green fuels, while also providing a financial source to support low-income countries in their equitable and sustainable energy transition.

Kenya’s climate envoy, Ali Mohamed, has advocated a levy of between $150 and $300 per tonne of emissions. “Anything less risks stalling progress,” he said this week.

The alternative option currently being proposed – a combination of a low levy and a carbon trading system – would not have the impact needed to drive green fuels or generate the necessary finance. This was confirmed at the recent African Strategy Conference on Shipping Emission Reductions in Nigeria, where energy expert Dr Dola O concluded: “The global shipping industry is at a critical turning point. As the IMO prepares to finalise the emissions reduction strategy, it must step up and take the helm of its maritime future.”

Africa has the opportunity to become the world’s renewable energy hub. The African Green Hydrogen Alliance and the Green Hydrogen Foundation estimate that the continent could create 4 million jobs and produce 60 million tonnes of green hydrogen per year.

We – African countries – can provide green fuels. What we need is for the IMO to ensure that there is enough demand for them.

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