Sovereign Carbon Initiative
"Climate change is not a theoretical long-term forecast that needs to be anticipated, but is already a palpable reality that our populations suffer from on a daily basis".
H.E. The President of the Republic Ismaïl Omar Guelleh
At a time when Africa, and Djibouti in particular, are directly impacted by climate change, the Republic of Djibouti, by presidential decree, has created the Sovereign Carbon Initiative with the introduction of a Carbon Contribution.
This initiative is in keeping with the urgency of the situation, and with Djibouti's commitment to reduce its greenhouse gas (GHG) emissions by 40% by 2030, in line with the objectives of the Paris Agreement, which aims to keep the increase in global temperature below 1.5°C compared with pre-industrial levels.
Mandatory contribution
Based on the "Polluter Pays" principle applied in over 35 countries representing more than 70% of the world's GDP, this is a carbon contribution instituted by Article 2 of the Presidential Decree to be paid by the main GHG emitters (the "Obligated"), including entities in the aviation and maritime sectors, institutional organizations and foreign armed forces based in the Republic of Djibouti.
Voluntary contribution
In accordance with Article 6 of the Presidential Decree, all economic players operating on the territory of the Republic of Djibouti are encouraged to join this initiative on a voluntary basis and contribute their expertise, know-how or financing.
Our mission
The Sovereign Carbon Agency's mission is to support Djibouti's ecological and energy transition objectives in order to achieve the country's commitment to reduce its GHG emissions by 40% by 2030 The carbon contribution has the following priority objectives:
- Set up a Carbon Registry enabling Obligated and Voluntary Emitters to record their actual emissions and track their contribution and offsetting efforts,
- To finance and carry out impact programs for the benefit of the most vulnerable populations most exposed to the consequences of global warming. These programs will meet the Sustainable Development Goals as defined by the United Nations,
- Develop programs to strengthen Djibouti's food sovereignty.
- Design and implement environmental and energy carbon avoidance and sequestration programs alongside specialized third-party investors. These will include reforestation projects, biodiversity preservation and restoration, and renewable energy production.
AGENDA
2023Phase 1
Official launch of Djibouti's Sovereign Carbon Initiative
Carbon Contribution for Obligated and Voluntary Workers2024Phase 2
Creation of the Carbon Registry
Contribution and Carbon Offsetting.
Implementation of impact projects2025Phase 3
Implementation of environmental and energy projects
Phase 1: The Carbon Contribution
The Sovereign Carbon Agency, under the supervision of the Presidency of the Republic, is the only body authorized to define the terms and conditions for payment of the Carbon Contribution, and to receive, assess, register and approve applications for program funding.
Obligees in the Air and Maritime sectors must pay the Carbon Contribution in accordance with the terms and conditions described in the appendix to this document. The Carbon Contribution of institutional organizations and foreign armed forces based in the Republic of Djibouti will be defined in specific agreements.
Phase 2: Creation of the Sovereign Carbon Registry
A Sovereign Carbon Registry will enable Obligees and Volunteers to report their GHG emissions calculated in accordance with recognized international standards, to register and track their contributions, and to track the offsetting actions associated with their actual emissions.
The Obligees' effort in relation to their carbon footprint will be split between an obligatory contribution and an offsetting obligation, via the withdrawal of carbon credits issued by independent certification agencies. These carbon credits must be associated as a priority with projects developed in the Republic of Djibouti.
The Carbon Registry will be administered by an independent and transparent governance body comprising international organizations and verification and certification companies.
Phase 3: Implementation of environmental and energy projects
The establishment of the Sovereign Carbon Registry and the support of public and private players operating in Djibouti will enable the Sovereign Carbon Agency to design and promote environmental and energy projects to specialized investors.
The Initiative aims to initiate large-scale projects for the production of renewable energy, the preservation and restoration of biodiversity, and food sovereignty.
