Decarbonising Africa’s maritime transport

• Africa’s maritime trade, which hit $22Bn in 2018, will reach $48Bn by 2063 but relies heavily on fossil fuels.
• Shipping fuels global warming and is responsible for 2.5 per cent of greenhouse gas emissions.
• Africa urged to include maritime decarbonisation in NDCs for a greener future.

Africa’s maritime trade continues to grow exponentially. However, in light of the climate change crisis and the continent’s vulnerability, deliberations on decarbonising Africa’s maritime transport have emerged. During the Africa Climate Summit (ACS) in Nairobi, Kenya, a key focus point of the Nairobi Declaration was the urgent need to “accelerate all efforts to reduce emissions to align with goals outlined in the Paris Agreement.” Further, world leaders were urged to support and rally behind the proposed global carbon tax on fossil fuel trade and maritime transport.

During the summit, the “Creating Sustainable Pathways in Africa” session sought to realise eco-friendly shipping and economic growth by reducing carbon emissions. During this discussion, experts explored strategies for aligning green shipping and hydrogen markets to accelerate decarbonisation.

Africa’s abundant natural resources can position it as a potential exemplar for eco-friendly shipping. The 2023 UNCTAD Economic Development in Africa report confirms Africa’s substantial reserves of essential minerals critical to the global energy transition. Furthermore, the Natural Resource Governance Institute (NRGI) underscores the pivotal contribution of these “transition metals” to Africa’s decarbonisation endeavors.

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Africa’s maritime transport sector outlook

Maritime transport is the lifeblood of global trade and the world economy, handling over 80 per cent of international goods. Likewise, in Africa’s maritime transport sector holds a crucial role in economic development and international trade. Maritime transport offers one of the most efficient and cost-effective shipping methods.

As per the UNEP report on Africa’s Business Environment Outlook, Africa’s maritime transport sector contributes three per cent to global trade, amounting to $22 billion in 2018. Estimates show it will grow to $48 billion by 2063 due to strategic investments in ports, shipping, technology, and maritime education.

Indeed, the maritime sector heavily relies on fossil fuels, contributing 2.5 percent of global greenhouse gas emissions. It annually emits approximately one billion metric tonnes of greenhouse gases. This is equivalent to two-thirds of Africa’s total emissions, significantly contributing to global warming. However, due to its international nature, it must be on record in national contributions data.

During the ACS, however, African nations were encouraged to integrate strategies for decarbonising maritime activities into their national contributions. This inclusion would facilitate the transition toward maritime decarbonisation.

Unfortunately, this absence has hindered investments in essential projects such as green ports and national single-window systems, which are crucial for reducing carbon emissions in the shipping industry.

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Financing climate resilience

Keynote speakers at the ACS proposed several crucial approaches, including a just transition, establishing green transport corridors, investing in eco-friendly shipping technologies, and developing and enforcing global regulations and policies.

The absence of well-defined maritime policies and regulations has prevented specific African ports from accessing climate resilience financing offered by international lenders, according to the Association of African Maritime Administration (AAMA) secretariat.

Shadrack Mwandime, Kenya’s Principal Secretary for Shipping and Maritime Affairs, emphasised that Africa, while contributing less than 4 per cent of greenhouse gases (GHGs), disproportionately faces the consequences of climate change.

He asserted Africa’s commitment to reducing its carbon footprint, particularly within the maritime sector, and stressed the importance of directing resources toward research institutions to drive innovation in green maritime technologies, ultimately contributing to job creation.

In 2020, a World Bank report titled “Allocating Carbon Revenues from Shipping” estimated that approximately 1.2 gigatons of carbon dioxide equivalents (CO2e) were discharged. This equates to roughly 3 per cent of global greenhouse gas (GHG) emissions. This figure surpasses the emissions of the world’s fifth-largest GHG-emitting nation.

The 2022 UNCTAD Review on Maritime Transport also emphasises the  industry’s urgent need to enhance its resilience in future crises and climate change. The report highlights the importance for ports, shipping companies, and transportation operators to curtail emissions and protect fair competition. Ultimately, this ensures the maritime transport sector remains robust in the face of upcoming challenges.

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Decarbonising the shipping business

“We must change course, and we must do it now. To prepare for the future, we need shipping and supply chains to be more efficient, resilient, and far greener,” noted UNCTAD Secretary-General Rebeca Grynspa.

Kenya has played a central role in this endeavor, hosting two significant events focused on Africa’s maritime sector: the 6th Maritime Administration Conference and General Assembly and the International Maritime Organisation (IMO) Conference on Low-Carbon Shipping in Africa, both held in Mombasa in May 2023.

These events aimed to expedite the process of decarbonising shipping activities in Africa. The IMO, the global shipping regulatory body, collaborated with the Association of African Maritime Administrators to explore sustainable approaches to achieving low-carbon shipping in Africa.

Ambassador Nancy Karigithu, Kenya’s special envoy for Maritime and Blue Economy, emphasised the importance of developing eco-friendly port infrastructure.

She underscored that the transition to low-carbon shipping in Africa necessitates the adoption of innovative and sustainable technologies to reduce carbon emissions while preserving the sector’s efficiency and competitiveness.

The transition to green shipping has the potential to create jobs for Africans. According to Maritime Just Transition Task Force research, an estimated 800,000 seafarers could require additional training by the mid-2030s to operate vessels running on clean fuels.

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Africa’s comparative advantage in maritime green transition

Rare Earth Elements (REEs) exploration in Africa had long been overshadowed by the prioritisation of precious metals like gold and diamonds. However, the continent has recognised its newfound importance amid the climate change crisis.

Africa’s substantial reserves of these green energy transition metals offer a unique advantage for decarbonising the maritime sector and all modes of transportation.

The United States Geological Survey (USGS) data on global mineral reserves reveals that Africa plays a pivotal role, with significant cobalt reserves (52.4 per cent), Manganese (46 per cent), Bauxite for aluminum production (24.7 per cent), Graphite (21.2 per cent), and Vanadium (16 per cent). Notably, the Democratic Republic of Congo (DRC) supplies approximately 70 per cent of the global cobalt.

Besides, South Africa has 91 per cent of the world’s platinum, 46 per cent of yttrium, 70 per cent of manganese, 35 per cent of its chromium and 16 per cent of vanadium. Morocco has 70 per cent of the world’s phosphate reserves. Gabon has up to 15 per cent of the world’s manganese. Zimbabwe has vast lithium reserves and is ranked among the top five producers globally, together with Nigeria and Namibia. Zambia is renowned as Africa’s second-largest cobalt producer and sixth-largest copper producer. Namibia hosts between 20 per cent and 40 per cent of global graphite reserves.

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Green hydrogen’s role in decarbonising Africa’s maritime transport

The shipping industry has come under immense pressure to decarbonise, significantly contributing to GHGs. This has seen investments in carbon-neutral shipping technologies soar.

As part of the ‘2030 Breakthroughs’ envisioned by the Climate Champions, one objective is to have zero-emission fuels make up 5 per cent of global shipping’s energy needs by 2030. Among the tested alternatives, hydrogen stands out as an up-and-coming zero-emission fuel option for the shipping industry despite cost-related hurdles.

Several nations have initiated research and development efforts to lower production expenses and examine potential expansion. Mauritania, South Africa, Morocco, Djibouti, Namibia, Egypt, and Kenya are at the forefront of green hydrogen production, with significant projects in progress.

Hydrogen as a low-carbon fuel source

A 2021 Global Maritime study examining 106 projects aimed at achieving zero emissions in maritime shipping found that nearly half of these initiatives prioritised hydrogen as a low-carbon fuel source. Consequently, experts have determined that hydrogen offers a more practical choice compared to other potential zero-emissions fuels for shipping.

While hydrogen is the most abundant element in the universe, it is relatively scarce on Earth in its pure form. It is commonly present in compounds like water and organic substances such as methane.

Typically, hydrogen appears in three types on account of the carbon intensity of the production process: Gray, Blue, and Green hydrogen. Blue and Green hydrogen have emerged as the most suitable options for the shipping industry to reduce its greenhouse gas emissions significantly.

According to experts, hydrogen derived from electrolysis using renewable energy offers the only sustainable and mass-produced fuel source for the shipping industry.

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Retrofitting existing ships

Hydrogen boasts extensive and long-term storage capability. After production, it is easily stored and transported in fuel tanks, a significant advantage for the sector. Moreover, retrofitting existing ships with hydrogen fuel cells is relatively straightforward.

Typically, fuel cell technology integrates into most ships through retrofitting. To propel ships, hydrogen is introduced into fuel cells. Here, it turns into electricity and heat energy, providing continuous power as long as the cell receives fuel.

In contrast to batteries that require frequent recharging, hydrogen ensures an uninterrupted energy supply. Additionally, hydrogen fuel cells effectively reduce noise pollution, operating quietly and emitting only oxygen and water vapour as byproducts.

Establishing an African shipping line

At the beginning of this year, an alliance was set up in Ghana between the Maritime Organisation of West and Central Africa (MOWCA) and the African Continental Free Trade Area (AfCFTA) secretariat. Their goal is to enhance intra-African trade by bolstering maritime transport.

These organisations jointly aim to advance African trade interests. They are working alongside AFREXIM Bank to explore financial support for creating an African Shipping Line. Additionally, they are collaborating with the African Union (AU) to align with MOWCA’s strategic agenda.

Dr. Paul Adalikwu, MOWCA’s Secretary General, emphasised that with effective utilisation and ongoing human capital development, the maritime sector has the potential to uplift 30 million Africans from poverty annually.

This would have a direct positive influence on various sectors, including agriculture and manufacturing. The move will also positively impact import-export activities, powering the entire value chain.

The United Nations Economic Commission for Africa (UNECA) report indicates that to implement AfCFTA by 2030, Africa will need 126 vessels for bulk cargo and 15 box ships.

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