May 12, 2025
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The Sovereign Carbon Initiative, implemented in Djibouti and Gabon, calculates the carbon cost as 50% of the total carbon footprint of a ship’s journey to or from Djibouti and Gabon, and the price is set at USD 17 per tonne of CO2e emissions. The principle behind the scheme is simple: those who pollute must pay.
The Governments of Djibouti and Gabon have introduced a carbon pricing mechanism under the Africa Sovereign Carbon Initiative.
The Africa Sovereign Carbon Initiative ensures that countries economic growth aligns with global sustainability targets, including those set by the Paris Agreement, and sets an example for other nations, particularly in Africa to follow. The principle behind the scheme is simple: those who pollute must pay.
However, there are certain differences between Djibouti and Gabon regarding the scope of their initiatives (such as exemptions) and the tariffs they set (US$/tCO2, caps).
A. Key commercial impact
Starting in March 2023 in Djibouti and March, 2025, in Gabon, all cargo vessels calling in must report their carbon footprint based on the fuel consumption, vessel type, maximum capacity (DWT - TEU) and voyage distance. The carbon contribution is calculated as 50% of the total carbon footprint of a ship’s journey to or from Djibouti/Gabon. Carbon contribution price is set at USD 17 per tonne of CO2e emissions, with different caps set in each country.
Both countries require Obligors to submit reports on a monthly basis, meaning they must track and report their data each month. Afterward, the Sovereign Carbon Registry issues an invoice, which must be paid within 45 days. Every six months, Bureau Veritas (BV) conducts audits to ensure compliance with international carbon accounting methodologies. Financial flows are audited by Mazars.
B. Carbon offsetting
Starting from July 2025 in Djibouti, and 2026 in Gabon, the carbon mitigation process will start. This means part of the Obligors' carbon emissions will be offset with carbon credits from local or regional carbon avoidance or sequestration project. The offsets will be certified by recognised standards (Verra, Gold Standard, etc.).
C. Conclusion
Emission regulations are becoming increasingly important on a global scale. With the upcoming MARPOL amendments, the current EU ETS, Fuel EU, and developing national emission regulations, it is essential for shipowners to stay ahead and ensure compliance with evolving requirements.
As many African countries are likely to follow Djibouti´s and Gabon’s lead in aligning with Paris Agreement goals, the key to navigating these regulations is simple: know your emissions. Understanding and tracking emissions will streamline the calculation of related costs and reduce administrative burdens.
Contact us for commercial or legal support in navigating these regulations.
The Sovereign Carbon Initiative, implemented in Djibouti and Gabon, calculates the carbon cost as 50% of the total carbon footprint of a ship’s journey to or from Djibouti and Gabon, and the price is set at USD 17 per tonne of CO2e emissions. The principle behind the scheme is simple: those who pollute must pay.
The Governments of Djibouti and Gabon have introduced a carbon pricing mechanism under the Africa Sovereign Carbon Initiative.
The Africa Sovereign Carbon Initiative ensures that countries economic growth aligns with global sustainability targets, including those set by the Paris Agreement, and sets an example for other nations, particularly in Africa to follow. The principle behind the scheme is simple: those who pollute must pay.
However, there are certain differences between Djibouti and Gabon regarding the scope of their initiatives (such as exemptions) and the tariffs they set (US$/tCO2, caps).
A. Key commercial impact
Starting in March 2023 in Djibouti and March, 2025, in Gabon, all cargo vessels calling in must report their carbon footprint based on the fuel consumption, vessel type, maximum capacity (DWT - TEU) and voyage distance. The carbon contribution is calculated as 50% of the total carbon footprint of a ship’s journey to or from Djibouti/Gabon. Carbon contribution price is set at USD 17 per tonne of CO2e emissions, with different caps set in each country.
Both countries require Obligors to submit reports on a monthly basis, meaning they must track and report their data each month. Afterward, the Sovereign Carbon Registry issues an invoice, which must be paid within 45 days. Every six months, Bureau Veritas (BV) conducts audits to ensure compliance with international carbon accounting methodologies. Financial flows are audited by Mazars.
B. Carbon offsetting
Starting from July 2025 in Djibouti, and 2026 in Gabon, the carbon mitigation process will start. This means part of the Obligors' carbon emissions will be offset with carbon credits from local or regional carbon avoidance or sequestration project. The offsets will be certified by recognised standards (Verra, Gold Standard, etc.).
C. Conclusion
Emission regulations are becoming increasingly important on a global scale. With the upcoming MARPOL amendments, the current EU ETS, Fuel EU, and developing national emission regulations, it is essential for shipowners to stay ahead and ensure compliance with evolving requirements.
As many African countries are likely to follow Djibouti´s and Gabon’s lead in aligning with Paris Agreement goals, the key to navigating these regulations is simple: know your emissions. Understanding and tracking emissions will streamline the calculation of related costs and reduce administrative burdens.
Contact us for commercial or legal support in navigating these regulations.
