Implications of the EU’s Inclusion of Maritime Transport in the Emissions Trading System for Shipping Companies

Wang, Shuaian; Zhen, Lu; Psaraftis, Harilaos N.; Yan, Ran

doi:10.1016/j.eng.2021.01.007

Cited by 44 publications

(20 citation statements)

References 8 publications

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“…In contrast to what would happen under any implemented global system regulated by the IMO, in the case of the inclusion of shipping in a regional ETS (such as in the case of the California RECLAIM programme, the China National ETS (see Pizer and Zhang 2018) and the proposal for the EU ETS), carbon leakage is another factor that needs to be considered as a potential weakness of such a system; shipping companies may have greater motivation to register all or some of their vessels elsewhere or even engage in maritime trades in other geographical regions in preference to the EU, to avoid compliance with the regional ETS system or, alternatively, decide to use neighbouring ports outside of the geographical coverage of the ETS (Miola et al 2011;Wang et al 2015Wang et al , 2021. To address this challenge, Transport & Environment (2020) analysed the additional costs for re-routing vessels away from EU ports.…”

Section: Weaknessesmentioning

confidence: 99%

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

Christodoulou

Cullinane

2023

Marit Econ Logist

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The decarbonisation of shipping has become a high priority on the environmental and political agenda. The prospect of implementing an Emissions Trading System (ETS) for shipping has come to prominence as a proposed mechanism for speeding up the decarbonisation of the industry, with the EU taking proactive action to include shipping within the EU ETS by 2023. This paper analyses and provides a qualitative review of the historical development of the discussions and actions taken at both global level (by the International Maritime Organization (IMO)) and at regional level within the EU. A SWOT analysis of the potential implementation of an ETS for shipping is then presented. The paper concludes that an ETS for shipping can incentivise greater investment in, and deployment of, green technologies that will have the effect of reducing the carbon footprint of the shipping industry. However, the speed and significance of this effect will depend upon the specific shipping market segment and the relative stage in shipping market cycles over time. It is further concluded that despite the imminent unilateral introduction of shipping into the EU ETS, it is important that the IMO continues its work to develop a global ETS that promotes a ‘level playing field’ for competition within the sector and eliminates the risk of carbon leakage.

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Section: Weaknessesmentioning

confidence: 99%

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

Christodoulou

Cullinane

2023

Marit Econ Logist

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“…At present, the institutional measures for carbon reduction in China's shipping industry are mainly the regulatory measures led by administrative organs and lack the participation of market-based mechanisms. Market-based mechanisms are designed to internalize the external costs of GHG emissions based on the polluter-pays principle (Wang et al, 2021)and provide economic incentives related to GHG emission reduction (Harilaos, 2012;Daniel, 2018). It has been manifest that the market transaction policy can enhance the economic and emission reduction potential more than the command control policy can (Wang et al, 2016).The adoption of carbon reduction measures based on market mechanisms is the current choice of instruments for regulating GHG emissions in many countries and the International Maritime Organization (Kirval and ÇaliŞkan, 2022).…”

Section: The Normative Content Of Established Rules Needs To Be Improvedmentioning

confidence: 99%

Review and reflections of legislation and policies on shipping decarbonization under China’s “dual carbon” target

Yang

Chen²,

Liu³

2023

Front. Mar. Sci.

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Although shipping is a relatively energy-saving and environmentally friendly mode of transportation, the growth rate of its energy consumption and carbon emissions far exceeds that of other industries. As an important response to climate change, shipping decarbonization is not only an important part of achieving the temperature control goal of the Paris Agreement but is also an important direction for the future development of China’s ecological civilization construction. China has formulated and promulgated legislation and policies on shipping decarbonization both at the national and local levels. The proposal in 2020 of the goal of carbon peaking and carbon neutrality has accelerated this process. In this context, this paper aims at reflecting on legislation and policies for decarbonization of shipping under China’s “double carbon” target, and proposing suggestions for improvement. Firstly, we systematically review China’s legislation and policies on shipping decarbonization to outline the normative system of China’s shipping carbon reduction. Secondly, this paper evaluates China’s legislation and policies on shipping decarbonization from the perspective of both achievements and challenges. Finally, this paper proposes that China’s legislation and policies for decarbonization of shipping should be further improved from two aspects: enhancing mandatory force and expanding normative content.

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“…While the IMO DCS provides global coverage and requires reporting of fuel consumption, a proxy for CO 2 emissions, for ships above 5000 gross tonnage [31]. Data compiled from the EU MRV serve as the basis for including maritime transport in the EU ETS [108]. The EU adopted the MRV system for shipping in 2015, a year before the IMO DCS, given the insufficient progress in GHG emissions mitigation at the IMO level [31].…”

Section: Informational Governance Policiesmentioning

confidence: 99%

Policy approaches to mitigate in-use methane emissions from natural gas use as a marine fuel

Laskar

Giang

2023

Environ. Res.: Infrastruct. Sustain.

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Unregulated in-use methane emissions (or methane slip) can reduce or even eliminate the overall climate benefits of using liquefied natural gas (LNG) as a marine fuel. We conduct critical review and expert interviews to identify methane slip mitigation measures, and then identify and evaluate potential policy instruments that could incentivize their uptake while considering the shipping sector’s climate targets. We find that regulatory instruments are expected to perform the best across a range of criteria when they are at the global level, include methane on a CO2-equivalent and lifecycle basis, promote polycentric approaches to climate governance, and allow flexibility in how the industry incorporates decarbonization measures. Market-based approaches and informational governance policies complement regulatory instruments by improving cost-effectiveness and increasing the availability of relevant information on emissions mitigation. The urgency and scale of shipping climate targets underscore the need for policy approaches that support planning for long-term decarbonization pathways and that can avoid locking into fossil-carbon intensive systems.

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Implications of the EU’s Inclusion of Maritime Transport in the Emissions Trading System for Shipping Companies

Cited by 44 publications

References 8 publications

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

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

Review and reflections of legislation and policies on shipping decarbonization under China’s “dual carbon” target

Policy approaches to mitigate in-use methane emissions from natural gas use as a marine fuel

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