As the global shipping industry prepares to implement a landmark carbon levy, Nigerian experts and climate advocates are calling for urgent safeguards to ensure that developing countries do not bear the burden of the world’s maritime transition.
The International Maritime Organisation (IMO) is poised to adopt a global emissions pricing mechanism under its Net-Zero Framework, projected to raise about $10 billion annually starting in 2028. While hailed as a significant step toward climate action in the maritime sector, the policy is sparking debate over how its revenues should be distributed.
Opportunity Green’s new report, “A Just and Equitable Transition for Shipping,” argues that the funds must prioritise countries most vulnerable to climate change—like Nigeria—rather than flow back as subsidies to shipping giants that have already modernised their fleets.
“There’s a real risk that the bulk of the money raised from shipping’s new global emissions reduction measure will be given back to the maritime sector as a reward mechanism—to shipping companies who have already modernised their fleets,” said Emma Fenton (they/them), Senior Director of Climate Diplomacy at Opportunity Green.
“That’s why we’re calling for as high a proportion of revenues as possible to support ambitious climate action, including adaptation and resilience in climate-vulnerable nations. Nigeria is a clear example of where strategic finance particularly conflict-sensitive funding—can create the enabling conditions needed for a just transition. The IMO Net-Zero Fund can and should help deliver that.”
The report identifies three strategic revenue opportunities for Nigeria:
• Conflict-sensitive adaptation finance, to address climate-induced displacement, hunger, and instability;
• Port efficiency and resilience investments, vital for reducing disruptions and improving food and trade logistics, and
• Food security funding, to support climate-resilient agriculture and distribution systems, particularly as shipping costs increase, threatening import-reliant economies..
“Nigeria’s communities are suffering from floods, desertification, and rising food insecurity,” said Olumide Idowu, a Nigerian youth climate advocate. “Simultaneously, we face significant barriers in transitioning to cleaner energy systems. The IMO Net-Zero Fund presents a unique opportunity to support conflict-sensitive adaptation and unlock our enormous potential in solar energy. We urge the international community to ensure that the revenues from shipping’s transition are used to drive a just and equitable transition in countries like ours.”
Nigeria currently receives limited adaptation finance despite facing some of the continent’s most severe climate challenges. With gas accounting for 72% of the national energy mix and port infrastructure increasingly vulnerable to flooding, the country urgently needs investment in renewable energy, green logistics, and coastal resilience.
“As the global shipping industry races to decarbonise, Africa must not be made to pay the price for a crisis it did not create,” said Prof. Daniel Musa Gwary, Director of Arid Zone Studies at the University of Maiduguri. “The proposed carbon tax, while well-intentioned, risks worsening food insecurity, raising shipping costs, and shrinking household incomes across the continent. If the transition to green shipping is to be truly just, it must reflect the realities of developing nations by ensuring fair revenue redistribution, capacity support, and inclusive climate action. Nigeria is ready to lead, but equity must anchor the journey.”
Civil society groups echo this sentiment and argue that Nigeria should act immediately.
“The IMO’s Net-Zero Framework presents a strategic opportunity for Nigeria to align shipping levies with its Energy Transition Plan by redirecting revenues into clean energy investments,” said Dr. Michael David, Team Lead at the Global Initiative for Food Security and Ecosystem Preservation (GIFSEP). “We do not have to wait; let us immediately develop local regulations that mirror the IMO’s standards, positioning us to attract green shipping investments and improve international competitiveness. We need these revenues like yesterday to accelerate Nigeria’s shift toward a low-carbon economy and ensure a just transition.”
Nigeria has already led, hosting the African Strategic Summit on Shipping Decarbonisation in Abuja. The government is pushing for the Net-Zero Fund to include flexible, concessional financing for vulnerable countries, particularly climate adaptation, food system resilience, and clean energy development.
As IMO member states gear up for the final adoption of the Net-Zero Framework in October, Nigeria and other African nations are pressing for reforms that uphold the principles of “common but differentiated responsibilities” under the Paris Agreement.
“The richer nations must listen to the voice of the developing economies in the collective effort to reduce GHG emissions in the maritime sector,” Prof. Gwary added.
The outcome of these negotiations could define whether the IMO’s climate strategy becomes a model for inclusive climate governance or a missed opportunity that leaves vulnerable nations adrift.
