Evolution of the EU and international maritime shipping

The prospects for, and implications of, emissions trading in shipping

“…The main rationale for the adoption of a global GHG ETS for the maritime industry is to design an MBM where the quantity of global shipping emissions would be determined through the setting of: (a) a global cap on GHG emissions which would be reduced year-on-year and (b) the purchase price of emissions allowances that all vessels above a certain deadweight tonnage would need to surrender to cover their emissions. Another important priority is that the system should be global in application and, thereby, facilitate a 'level playing field' for competition within the sector (Mellqvist et al 2014;Artuso et al 2016). Such a mechanism would effectively involve setting a carbon price that shipping companies would need to bear in correspondence with their carbon footprint.…”

“…Quite apart from the challenges associated with the introduction of an ETS for the reduction of GHG emissions from shipping (Psaraftis 2021), the extension of the EU ETS to cover CO 2 emissions from maritime transport could contribute significantly to the achievement of the EU's target for climate neutrality in Europe by 2050, especially through investments in alternative fuels and energy sources for the decarbonisation of the maritime sector. Along with the development of regional ETSs for the reduction of shipping emissions, deliberations within the IMO on the potential adoption of a global ETS should not be postponed, as the international nature of shipping implies that global regulatory measures are more suitable and more effective for the regulation of the sector (Eftestøl and Yliheljo 2022; Hughes 2020), particularly when maintaining a 'level playing field' for competition within the sector is a serious concern (Artuso et al 2016;Zis and Cullinane 2020). Although MBMsincluding a global ETS-have been categorised as mid-term measures in the IMO GHG Strategy to be considered for implementation between 2023 and 2030, the introduction of MBMs in parallel with other operational and technical measures should be urgently examined (Bows-Larkin 2015), as they can incentivise investments in innovative technologies and fuels and accelerate the decarbonisation of the maritime sector.…”