- Djibouti introduces Africa’s first national carbon pricing mechanism for international shipping.
- The simple yet impactful registry could influence other African nations, with Gabon expected to follow.
- The initiative reflects a broader trend of unilateral climate actions shaping maritime compliance challenges.
While global attention remains fixed on major regulatory frameworks like the EU Emissions Trading System (ETS) and upcoming IMO measures, a smaller yet potentially influential initiative has quietly taken root in the Horn of Africa. Djibouti’s national carbon pricing scheme, launched by Presidential Decree in March 2023 and now fully operational, marks the continent’s first carbon pricing mechanism aimed specifically at international shipping.
Why Djibouti’s Move Matters
At first glance, Djibouti’s registry might seem narrow in scope. It targets vessels with deadweight tonnage over 3,000 tonnes, gross tonnage above 500, or container capacity exceeding 300 TEU. But dismissing it would be a mistake. Djibouti plays a disproportionately important role in regional maritime trade, acting as Ethiopia’s maritime gateway and sitting on one of the world’s busiest shipping lanes.
Moreover, Djibouti’s initiative may be the beginning of a broader movement. Reports suggest Gabon is preparing to launch a similar scheme, potentially making this a model for future African Union climate policy.
Key Features of the Carbon Registry
Djibouti’s carbon registry is designed to be simple, transparent, and aligned with international maritime standards. Operating on a “polluter pays” principle, the registry targets shipping and aviation firms—termed “Obligors”—to report and mitigate their carbon emissions.
Highlights of the system include
- Carbon price: USD 17 per tonne of CO₂e—higher than many voluntary markets, but lower than EU ETS levels
- Voyage cap: USD 7,500 per voyage to keep the port economically competitive
- Emission attribution: 50% of emissions assigned to Djibouti, 50% to the origin/destination country
- Implementation timeline: Full payment phase now active, with a 70/30 split (carbon payment/offsetting) starting in July 2025
- Data reporting flexibility: Either fuel use records or IMO-recognised emission factors can be used.
A Regional Trend in the Making
What makes this initiative particularly important is its role in a growing continental trend. Djibouti’s registry is not a one-off—it may be part of a larger African Union push for national carbon mechanisms. As noted by climate analyst Albrecht, “Gabon is set to follow, and this appears to be part of a wider AU proposal.” This suggests a future where shipping companies must deal with multiple overlapping national carbon frameworks, especially if adopted on a country-by-country basis rather than via regional blocs.
Operational and Compliance Impacts
For shipping firms, the registry introduces immediate obligations:
- Reporting: Vessels calling at Djibouti must now report voyage emissions monthly
- Payment: Mitigation fees must be settled within three months of reporting
- Documentation: Operators must submit detailed voyage and vessel data, although Djibouti offers to manage reporting on behalf of companies
While the USD 7,500 cap limits financial burden per trip, the scheme introduces new costs for East African routes and adds to the administrative load.
Decarbonization from the Ground Up
Djibouti’s registry reflects a growing trend of smaller nations taking action without waiting for global consensus. The country aims for the scheme to be a “model for all countries on the continent,” and the phased design—with pricing, capping, and offsets—shows serious intent.
This bottom-up approach is a double-edged sword: it shows leadership and commitment to climate goals, but it also increases the risk of regulatory fragmentation. A patchwork of national schemes could complicate compliance for shipping companies already navigating complex international regulations.
Strategic Implications for the Maritime Industry
Djibouti’s initiative may not radically reshape global maritime emissions policy on its own. However, it serves as an early warning of what could become a broader shift across Africa and other developing regions. For global shipping operators, the key takeaway is clear: regional and national policies are becoming as important as global ones.
Keeping a close eye on emerging carbon pricing schemes like Djibouti’s isn’t just about avoiding penalties—it’s about adapting to a rapidly changing regulatory environment. In the decarbonization era, strategic foresight and agile compliance are no longer optional—they’re essential.
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Source: OceanScore
