Ambassador Ali Mohamed is Kenya’s Special Envoy for Climate Change.

Kenya is a frontline casualty of the climate crisis. Escalating temperatures, unpredictable rainfall, and prolonged droughts are slashing food production, depleting water resources, and destabilising our economy. Our coastal ecosystems, vital to the “blue economy”, are besieged by rising sea levels, coral bleaching, and accelerating erosion.

These are not abstract threats; they are dismantling the livelihoods of millions of Kenyans who depend on agriculture and marine resources. Yet Kenya’s plight is not self-inflicted. Industrialised nations, with their outsized historical emissions, bear primary responsibility for this crisis. Under the principle of common but differentiated responsibilities, those who fuelled climate change must lead in funding solutions.

A proposed carbon levy on the shipping industry offers a transformative opportunity, one Kenya urgently supports, to deliver climate finance where it’s most needed while decarbonizing a critical global sector.

Global tax on shipping emissions faces choppy waters despite growing support

The shipping industry, a linchpin of global trade, stands poised to pioneer a new era of climate finance. At the UN International Maritime Organisation (IMO), governments are nearing agreement on a carbon levy on shipping emissions, with a decision slated for April 2025 at the Marine Environment Protection Committee (MEPC) 83 summit in London.

If enacted, this would be the first universal tax on an international polluting sector, a precedent-setting move. The World Bank estimates this levy could raise $60 billion annually, channeling vital funds into climate adaptation and mitigation for vulnerable nations like Kenya.

Kenya endorses this initiative unequivocally. It aligns with our national commitment to cut emissions and advance sustainable development, and it amplifies our role as co-chair of the Global Solidarity Levies Task Force, which champions levies on under-taxed, high-emission sectors.

Africa is not merely a bystander in this effort. From scaling renewable energy to modernising port infrastructure, we are active architects of a decarbonized maritime future. The levy promises not just revenue, but a framework for equitable progress, if designed with precision.

3% of global emissions

But why target shipping, some might ask? Well, for starters, shipping accounts for 3% of global greenhouse gas emissions, equivalent to Japan or Germany, the sixth-largest emitter worldwide. Unchecked, this figure will climb, intensifying climate pressures on coastal nations.

Decarbonising shipping isn’t optional; it’s a strategic imperative for a sustainable global trade system. Yet, the transition must not deepen existing inequities. African economies, heavily reliant on maritime trade, cannot afford levies that inflate export costs and widen global market disparities. Safeguards – such as reinvesting levy proceeds into affordable green technologies – are essential to level the playing field.

Investments in zero-emission vessels, renewable fuels, and resilient port infrastructure can ensure developing nations thrive in a low-carbon economy. A well-crafted levy would hasten this shift while funneling revenue to communities hardest hit by climate change. Kenya’s coastal populations, reeling from eroded shorelines and depleted fisheries, exemplify the stakes.

Direct funding for the Global South

Support for the levy is surging. Over 60 countries, commanding two-thirds of the global fleet, back the proposal, an encouraging signal ahead of MEPC 83. The IMO’s 176 member states already agree a carbon price is critical to hit net-zero emissions by 2050. But ambition matters.

The United Nations Conference on Trade and Development (UNCTAD) estimates that a levy of between $150 and $300 per tonne of emissions would both accelerate shipping’s energy transition and generate substantial climate finance. Anything less risks stalling progress.

A strong carbon tax on shipping can give hope to climate-vulnerable communities

Equity is equally critical. Funds must flow directly and predictably to developing nations, bypassing the bureaucratic quagmires that have long throttled Global South access to climate finance. Revenues should prioritise adaptation and resilience – especially for Africa, where sea-level rise and extreme weather already wreak havoc. Landlocked states, too, deserve support for broader climate projects, ensuring the levy’s benefits transcend the maritime sector. Without these guardrails, the mechanism risks perpetuating rather than dismantling historical injustices.

With just a short time until the IMO summit, member states must commit to bold, constructive dialogue. The world has a rare shot at a levy that’s fair, potent, and capable of delivering tangible climate finance. For Kenya, it’s a lifeline to shield our people and ecosystems from a crisis we did little to create. For the globe, it’s a chance to pivot toward sustainability while holding polluters accountable.

The post It’s time for shipping to launch first global tax on a polluting sector appeared first on Climate Home News.

It’s time for shipping to launch first global tax on a polluting sector