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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 oneis a global emissions trading scheme. This is being proposed by a group of countrieslike Norway, France, and Germany and the UK. It would mean that ship operators would haveto purchase allowances, which they would have to surrender in accordance with the emissionsthey 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 reducetheir emissions or purchase reductions from other sectors. The advantage for the sectoris that if you’re a ship operator, which for some reason has a high cost of reducingyour emissions, you can buy them more cheaply from a factory somewhere else, then this lowersyour 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 thesector, giving the operators more choice. Now the other proposal is a proposal fromcountries like Denmark, and is being supported by Cyprus. This is for a global levy on internationalmaritime fuel. So when ships purchase fuel around the world, the fuel supplier wouldhave to take a levy on that fuel, and that levy would be used to create a fund managedby IMO, and that fund would then
be used to purchase offsets for those emissions or toinvest in technology to reduce the emissions in the sector. So these are the two big competingideas. 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 processand the UNFCCC, in the International Civil Aviation Authority, as well as in the IMOto get these kind of agreements. Unfortunately, it’s quite difficult to get such a largenumber 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 regionalmeasure, the affect on CO2 or climate change would be marginal because the vast majorityof maritime transport services is taking place outside Europe, so you would only cover amarginal part of the whole thing. I think in overall efficiency, emissions tradingis probably the best among those that have been presented. It’s also easy with an ETSwhere allowances are sold on auction to come up with funds enough for compensating developingcountries if that is a prerequisite for reaching a global agreement. The other proposals area little more complicated to assess in the longer term.
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