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This report by the Africa Policy Research Institute analyzes the economic implications of a proposed International Maritime Organization (IMO) shipping carbon levy on African states. Using the GTAP-E model, the study finds that such a levy would generally reduce GDP and household incomes across Africa, increase global food prices, and exacerbate existing freight cost imbalances. The report advocates for an equitable transition where revenues are redistributed as direct grants to climate-vulnerable nations for out-of-sector projects like renewable energy and resilient agriculture.