Marginal abatement cost curves (MACCs) for assessing the role of market-based measures (MBMs) in enhancing the adoption of alternative marine fuels (original) (raw)
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Transactions on Maritime Science 10(1), 2021
In order for the maritime sector to align itself with the targets set by the Paris Agreement, it should reduce its GHG emissions by at least 50% by 2050 compared to 2008 with the ultimate aim to phase them out entirely. It is along these lines that in April 2018 the International Maritime Organisation (IMO) developed a strategy, consisting of a range of potential technical and operational measures to reduce GHG emissions from international shipping, ranking from improvements on ship design to the employment of alternative fuels. In order to stimulate the adoption of these policies, the IMO also considers the implementation of market-based measures (MBM) that will provide additional incentives to shipowners to invest in new technologies and uptake of cleaner fuels. The MBMs analysed in this paper include two different policies proposed by different countries and associations for the abatement of GHG emissions from shipping: a) the International Fund for GHG emissions from ships that includes the imposition of a global levy on marine bunker fuel for all vessels and b) the Maritime Emission Trading System (METS) that requires all maritime companies to buy/sell emission allowances to meet their annual emission reductions targets, setting a cap on global shipping emissions. This paper presents and analyses these two diverse MBMs, highlighting their main advantages and drawbacks. The scope of this paper is to investigate the potential of these MBMs to incentivise investments in new technologies and alternative fuels, both essential for the decarbonisation of the maritime sector.
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2020
SAMFUNDSØKONOMEN 4/2019 Udgives af Djøf Forlag The International Maritime Organization (IMO) is a specialized United Nations (UN) agency regulating maritime transport. One of the very hot topics currently on the IMO agenda is decarbonization. In that regard, the IMO decided in 2018 to achieve by 2050 a reduction of at least 50% in maritime green house gas (GHG) emissions vis-à-vis 2008 levels. The purpose of this paper is to discuss the possible role of Market Based Measures (MBMs) so as to achieve the above target. To that effect, a brief discussion of MBMs at the IMO and the EU is presented, and a possible way forward is proposed, focusing on a bunker levy.
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The international shipping industry contributes with 2.7% to the global emissions of CO2. In light of the projected growth of world trade by 2050 and the demand for maritime transport, it is necessary to identify and implement additional measures compared to the existing measures to reduce CO2 emissions. A category of measures with the potential for implementation is Market-Based Mechanisms (MBM). The paper presented a synthesis of the types of market-based mechanisms proposed to be implemented in maritime transport. Also, in the situation of implementing the market mechanism based on the introduction of the tax depending on the quantity of CO2 emitted by the ship, there is presented a calculation program for determining the amount of CO2 emitted during a voyage.