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Video How to reduce emissions from international shipping (Emission trading association)

Several porposals on how best to reduce emissions from international shipping are being discussed by Mark Major. Policy Officer. International Carbon Market.

There’s two main open market based measures proposed in the IMO process. The first one
is a global emissions trading scheme. This is being proposed by a group of countries
like Norway, France, and Germany and the UK. It would mean that ship operators would have
to purchase allowances, which they would have to surrender in accordance with the emissions
they create. So this creates kind of a carbon trading system globally just for shipping,
managed by the IMO. This would mean that ship operators have the choice to either reduce
their emissions or purchase reductions from other sectors. The advantage for the sector
is that if you’re a ship operator, which for some reason has a high cost of reducing
your emissions, you can buy them more cheaply from a factory somewhere else, then this lowers
your cost of reducing your emissions. So this is the advantage for the sector. Of course,
an individual could still decide they’re going to reduce their own emissions themselves,
and not have to purchase the reduction. It’s about lowering the cost of action for the
sector, giving the operators more choice. Now the other proposal is a proposal from
countries like Denmark, and is being supported by Cyprus. This is for a global levy on international
maritime fuel. So when ships purchase fuel around the world, the fuel supplier would
have to take a levy on that fuel, and that levy would be used to create a fund managed
by IMO, and that fund would then

be used to purchase offsets for those emissions or to
invest in technology to reduce the emissions in the sector. So these are the two big competing
ideas. For the Commission and the EU as a whole, we absolutely support the global solution.
This would be the most affective, and this would be the best to tackle climate change.
This would be the easiest way to do it. We are working hard in all of the UN process
and the UNFCCC, in the International Civil Aviation Authority, as well as in the IMO
to get these kind of agreements. Unfortunately, it’s quite difficult to get such a large
number of states to agree. First of all, shipping is a global industry,
and a regional measure wouldn't have much of an effect. If Europe would take a regional
measure, the affect on CO2 or climate change would be marginal because the vast majority
of maritime transport services is taking place outside Europe, so you would only cover a
marginal part of the whole thing. I think in overall efficiency, emissions trading
is probably the best among those that have been presented. It’s also easy with an ETS
where allowances are sold on auction to come up with funds enough for compensating developing
countries if that is a prerequisite for reaching a global agreement. The other proposals are
a little more complicated to assess in the longer term.

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