July 15, 2025
Djibouti has officially implemented Africa’s first national carbon pricing mechanism targeting international shipping, marking a significant regional move in maritime decarbonization.
Launched by presidential decree in March 2023 and now fully operational, the scheme applies to vessels exceeding specific thresholds, over 3,000 DWT, 500 GT, or 300 TEU, calling at the Port of Djibouti, OceanScore informs. The system imposes a carbon price of $17 per tonne of CO₂ equivalent, with a $7,500 voyage cap to maintain port competitiveness.
Emissions are allocated 50/50 between Djibouti and the vessel’s origin or destination country. From July 2025, the program will transition to a 70/30 split between direct contributions and mandatory carbon offsetting. Shipping companies are required to report fuel use or use IMO-standard emission factors, with monthly reporting and payment deadlines.
While the scheme is limited in geographical scope, its strategic importance is notable. Djibouti serves as a key maritime hub for landlocked Ethiopia and lies on one of the busiest global shipping lanes. Officials say the model is designed to be replicated, with Gabon reportedly preparing a similar framework.
The move is seen as part of a wider African Union effort to create decentralized, national-level carbon pricing systems. Experts warn this bottom-up approach, if adopted broadly across Africa, could lead to a fragmented compliance landscape for shipping companies already navigating complex international regulations.
