Kiel Working Papers, Kiel Institute for World Economics
No 1824:
Including Maritime Transport in the EU´s Climate Change Policy: Country-Based Allocation and Effects
Nadine Heitmann
Abstract: The European Union (EU) is actively campaigning for the
global regulation of carbon emissions generated by maritime bunker fuels
because these emissions are presently barely regulated and are projected to
increase significantly in the coming decades. However, since a global
regulation has not been reached yet, the EU is seeking ways to include the
shipping sector in its greenhouse gas reduction commitment for 2020. In
this paper, we look at the effect of including the shipping sector’s
emissions in the EU reduction commitment that is based on the nationality
of a ship. Emissions that are generated by ships owned, operated or flagged
by the 27 EU countries are allocated to the EU total GHG emissions. We
first analyse the effects on the reduction commitment caused by the three
allocations. We then use marginal abatement cost curves (MACCs) in order to
determine how much the shipping sector of the 27 EU countries, defined by
the three allocations, could contribute efficiently to a total given
emission reduction target for all sectors in the EU. Moreover, we use MACCs
in order to determine if some country fleets could reduce emissions in the
shipping sector relatively more efficiently than other countries under a
given emission reduction target for all sectors. Our findings indicate that
the shipping sector could contribute efficiently to the EU’s emission
reductions by up to 8.5%. Since the composition of the individual country
fleets and applied measures are similar across countries, their individual
reductions relative to their fleet-specific business-as-usual (BAU)
emissions are on average the same
Keywords: EU, climate change, shipping sector, CO2 emissions, marginal abatement cost curve; (follow links to similar papers)
JEL-Codes: Q52,; Q54,; Q58; (follow links to similar papers)
45 pages, January 2013
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