Inclusion of Shipping in the EU-ETS: Assessing the Direct Costs for the Maritime Sector Using the MRV Data

This paper aims to assess the direct economic impact on the maritime sector from its inclusion in the European Union-Emission Trading System (EU-ETS). The Monitoring, Reporting and Verification (MRV) data are analysed for the estimation of carbon dioxide (CO2) emissions within the European Economic...

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Bibliographic Details
Published in:Energies (Basel) 2021-07, Vol.14 (13), p.3915
Main Authors: Christodoulou, Anastasia, Dalaklis, Dimitrios, Ölçer, Aykut I., Ghaforian Masodzadeh, Peyman
Format: Article
Language:English
Subjects:
allocation methodology
Allowances
Benchmarks
Carbon dioxide
Climate change
Cost assessments
Economic impact
emission allowances
emission trading system
Emissions
Energy efficiency
Environmental policy
EU-ETS
Greenhouse effect
Greenhouse gases
Impact analysis
Marine transportation
Maritime industry
MRV data
Oil tankers
Paris Agreement
Reinforcement
Segments
shipping
Shipping industry
Tanker ships
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Summary:This paper aims to assess the direct economic impact on the maritime sector from its inclusion in the European Union-Emission Trading System (EU-ETS). The Monitoring, Reporting and Verification (MRV) data are analysed for the estimation of carbon dioxide (CO2) emissions within the European Economic Area (EEA). The economic impact assessment model used is scenario-based, and includes different price incentives, geographical coverage and emission allowances allocation methods. According to our findings, in case the emission allowances are fully auctioned or partially free allocated on the basis of a uniform benchmark, the increased costs would be disproportional among the maritime segments. Such a scheme would penalise Roll-on/Roll-off (RoRo) and Roll-On/Roll-Off/Passenger (RoPax) segments due their high fuel consumption per transport work in relation to oil tankers and bulkers. The establishment of differentiated benchmarks per segment seems to be a prerequisite for the effective inclusion of shipping in the EU-ETS that will reward energy efficient vessels in each segment and avoid competition distortion within the maritime industry.
ISSN:1996-1073
1996-1073
DOI:10.3390/en14133915