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Carbon Positive believes an emissions trading scheme (ETS) is preferable to a bunker levy for reducing greenhouse-gas (GHG) emissions in shipping. The experience in other industrial sectors over two decades shows that over the long term an ETS offers a number of advantages: (1) a low cost of compliance, (2) more choice and flexibility given to each ship owner in how they cut emissions, and (3) greater certainty that an emissions reduction target is actually reached.
The initial attraction to a bunker levy as a simpler solution to regulation is understandable; ship owners and charterers faced with regulation just want to know what the penalty is, cover it, and get on with business. But many ship-owners don’t recognize that the higher environmental cost of inefficient ships will merely be passed on by charterers who will pay lower rates to their owners. However, a well-designed ETS in close consultation with the maritime sector will enable owners to protect themselves. An ETS will mobilize the engineering talents of the private sector to develop a wide range of emissions-control options, the cheapest of which will win out. In addition, non-ship-based reductions might be used to reduce the pressure on ship-owners to cut their ship-based emissions.
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http://www.carbonpositive.net/viewarticle.aspx?articleID=2274
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