COP27 and the Sovereignty Dilemma
The 2022 United Nations Climate Change Conference COP27 promised a renewed commitment to carbon reduction—this time with a national twist.
Framing environmental action around sovereignty, COP27 empowered individual governments to tailor their own climate agendas.
In principle, the shift aimed to decentralise climate policy and “bring sovereignty back.”
In practice, the outcomes have brought power back but only to a select few.
Carbon in East Africa: Djibouti
One such case is Djibouti.
Despite lofty ambitions and presidential decrees, the country’s Carbon Contribution Scheme and Sovereign Carbon Agency (2023) raises serious concerns among logistics insiders, environmental monitors, and international regulators.
No Consultation, No Clarity
According to a senior industry experts who consulted with the Djibouti government, the decree mandating carbon contributions from international and regional airline and maritime operators was introduced without any stakeholder consultation.
The tax was framed as a national commitment to green development, with revenues purportedly directed toward projects like the Mangrove Restoration Initiative and carbon credit registry development.
However, more than a year later, neither the total funds collected nor their actual use have been made public.
National Carrier Exempt, Foreign Airlines Pay
Tensions escalated when an update to the scheme exempted Djibouti’s national airline, while maintaining levies on six international and regional carriers and the maritime shipping sector.
Industry experts close to The Daily Euro Times describe the move as a red flag for equity and business fairness, especially for logistics firms investing in Djibouti’s infrastructure and operations at Doraleh Port and Djibouti Ambouli International Airport.
Djibouti’s Environmental Reputation at Risk
Enforced as a sovereign directive, the scheme may align with national priorities, but it undercuts international trust.
There is no evidence of carbon credits being generated, no verified environmental impact, and no willingness from the government to adopt internationally recognised carbon reduction schemes.
Instead, Djibouti appears to have used its sovereign position to levy funds without delivering on climate commitments, raising accusations of greenwashing and opportunistic governance.
A Broader Pattern of Mismanagement
This incident is not isolated.
UNSC and open-source intelligence reports have previously flagged corruption, arms smuggling, and opaque port operations involving Doraleh, Hizbullah, Somalia’s deep state, and the Chinese-managed terminal.
These issues, coupled with Djibouti’s resistance to multilateral environmental frameworks, raise doubts about the country’s eligibility to administer credible climate finance mechanisms.
Caught in a Corporate Catch-22
Logistics firms face a dilemma: support UN Sustainable Development Goals by paying into schemes like Djibouti’s, or risk corporate embarrassment when those schemes fall short of transparency or impact.
The Call for Multilateral Oversight at Future COPs
The European Union and other global actors have advocated for multilateral carbon markets to prevent misuse and ensure measurable outcomes.
Other several fundamental concerns relate to the Djibouti scheme development especially in the alignment with similar operating carbon emissions reduction schemes exist.
Renown global emission reduction schemes in operation, include EUETS and CORSIA. Should Djibouti join, the national scheme will not be needed providing greater business confidence, security, and accountability for carbon-cutting measures.
COP30 presents a key opportunity for international regulators to push back on schemes that use climate as a pretext for unchecked sovereign revenue collection.
To maintain business confidence and ensure meaningful climate action in underdeveloped, high-emission regions, governance reform, transparency, and accountability must be non-negotiable.
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