Options for Europe when acting alone on CO2 emissions from shipping

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Per Kågeson

This paper was prepared as a contribution to the Working Group on Ships of the European Union's European Climate Change Programme (ECCP) and presented on 22–23 June 2011 at the second meeting of the group. It discusses various options that may be considered by the EU when contemplating, in the absence of any progress in the International Maritime Organzation (IMO), to act unilaterally on market-based measures for curbing CO2 emissions from international shipping. Focus is, in particular, on the pros and cons of introducing a hybrid scheme where emissions from domestic shipping and other small vessels (below a certain size threshold) are addressed by up-stream allocation of liability, i.e. with the fuel suppliers, while a down-stream allocation of responsibility would apply to large ships and to journeys departing from ports outside of the EU. For the latter, the ship owner would be directly responsible for submission on emission allowances or, alternatively, for paying a CO2 charge or levy.

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