Green Shipping Could Mean a Green Africa
Chukwumerije Okereke: Professor of Global Climate and Environmental Governance and Director of the Climate and Development Center at Alex Ekueme Federal University, Ndufu-Alike.
African leaders gathered in Addis Ababa, the capital of Ethiopia, to participate in the second African Climate Summit, which focused on overcoming obstacles to climate-resilient development on the continent.
In their efforts to innovate solutions, drive creativity, and attract funding, these leaders are working to reshape global climate action. As part of this process, they increasingly recognize that decarbonizing the maritime shipping sector—responsible for nearly 3% of global greenhouse gas emissions—could serve as a powerful catalyst for green manufacturing in Africa.
African governments have already emerged as key players in negotiations to reduce shipping emissions. Earlier this year, these governments helped secure the adoption of a net-zero framework by the International Maritime Organization, the UN’s maritime agency. This framework includes the first binding global pricing mechanism for greenhouse gas emissions from ships. This measure, expected to be formally adopted by the IMO at its upcoming session in October, represents a significant victory for multilateral climate action and indicates the beginning of the end of the shipping industry’s reliance on fossil fuels.
However, the real test will be how this pivotal policy is designed and implemented over the coming years. From the perspective of African governments, the larger question is how to realize the revenues generated from the pricing mechanism established by the IMO, which is projected to range between $10-15 billion annually by 2030.
If these funds are equitably distributed, they could help Africa close its massive energy gap, modernize its port and fleet infrastructure, and invest in transportation networks that could unlock vast renewable energy potential, particularly in geothermal, wind, and solar resources. A resilient network is also crucial for producing green hydrogen and other forms of green synthetic fuels, which are a promising solution for achieving clean energy in the maritime transport sector in the long term. This is likely to significantly boost existing green hydrogen projects in Africa and stimulate new initiatives while accelerating industrialization and growing GDP, positioning the continent as a global energy exporter.
So far, Africa has faced challenges in developing its abundant renewable resources due to prohibitively high capital costs. African economies remain burdened by unsustainable debt levels and low credit ratings, making clean energy investment costly. Currently, the continent receives only around 2% of global renewable energy investments. However, revenues from the new IMO carbon pricing mechanism could be used to reduce upfront costs, mitigate risks for clean energy investments, and pave the way for Africa to power global shipping.
It is crucial for the IMO to support this direction to harness Africa’s renewable resources by creating strong incentives for synthetic fuels. Otherwise, cheaper alternatives such as liquefied natural gas, which is more harmful to the planet, and crop-based biofuels, which increase pressure on food systems, threaten to undermine green hydrogen production projects and impede African nations’ efforts towards sustainable growth and development.
Increasing biofuel use would be particularly disastrous in African countries. In my country, Nigeria, where millions already face acute hunger, diverting crops for fuel production for ships—often carrying goods and supplies to wealthy nations—would be an unethical and economically reckless act. The production of biofuels is likely to exacerbate food insecurity, increase deforestation, greenhouse gas emissions, and land degradation—sometimes more so than fossil fuel production.
Like other African countries, Nigeria has all it needs to become a leader in sustainable shipping fuels, including abundant sun and wind resources and a young workforce. What it needs now is the right investments. If the IMO framework is designed appropriately, it could help provide the funds Africa needs to expand its renewable energy capacity. Failing to establish an ambitious and equitable policy may limit Africa’s prospects.
As IMO members convene in London this month to adopt the “net-zero” framework, African countries must exhibit the same leadership and determination as they did at the second African Climate Summit. Ensuring that the continent reaps the benefits of the new IMO mechanism would be a remarkable example of international cooperation. A climate-resilient future is within reach as long as African voices are heard and taken seriously on the global stage.
