Influence of the European Union (EU) on International Maritime Organization (IMO) about the Market-based Measures on Emissions

Abstract

Market-based Measures (MBM), a catalyst for new and effective technologies, can be advantageous for the shipping industry on its way to reaching 50% decarbonization by 2050. MBMs are the focal point at the decision-taking level for the International Maritime Organization (IMO) and European Commission (EC) to regulate emissions and improve energy efficiency in the maritime transportation industry. EC included shipping into European Union's (EU) existing Emission Trading Scheme (ETS). However, IMO's scheme will be functional after 2023, and the decision of an MBM is not finalized yet. The motivation of this paper is to analyze viable MBMs under the Initial IMO Greenhouse Gases (GHG) Strategy based on their superiority and evaluate the influence of EU policy implementation on the global shipping industry. The issues such as economic implications, feasibility, social and environmental responsibilities, and harmony of the policy are included in the paper to assess the success of the MBMs. Main concerns and thoughts revolving around EU ETS; such as economic implications of taxation, the existence of an administrative body for shipping in EU ETS, carbon leakage caused by high tax, voyage evasion of emissions by not delivering goods to distant areas, the emergence of a fraud-proof and more secure system with an administrative body, success factors of EU ETS after 16 years, full certainty of reducing emissions rather than incentives to reduce emissions, monitoring, and reporting schemes; are discussed to bridge the issue with EU's reasonings.

Mitigation of CO2 Emissions from Commercial Ships: Evaluation of the Technology Readiness Level of Carbon Capture Systems

“…The shipping industry plays a role in the production of greenhouse gases that significantly contributes to climate change. To achieve the goal of increasingly reducing GHG emissions in the near future, it will be necessary to adopt innovative measures and approaches that promote a serious path toward decarbonization; these may combine the use of alternative fuels, the introduction of more efficient technologies, and the implementation of regulatory measures to reduce emissions, as a single solution may not be sufficient to completely address the problem [25][26][27][28].…”