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Inclusion of Shipping in the EU-ETS: Assessing the Direct Costs for the Maritime Sector Using the MRV Data

Author

Listed:
  • Anastasia Christodoulou

    (Maritime Energy Management (MEM) Specialization, World Maritime University, Fiskehamnsgatan 1, 211 18 Malmö, Sweden)

  • Dimitrios Dalaklis

    (Maritime Safety and Environmental Administration (MSEA), World Maritime University, Fiskehamnsgatan 1, 211 18 Malmö, Sweden)

  • Aykut I. Ölçer

    (Maritime Energy Management (MEM) Specialization, World Maritime University, Fiskehamnsgatan 1, 211 18 Malmö, Sweden)

  • Peyman Ghaforian Masodzadeh

    (Maritime Energy Management (MEM) Specialization, World Maritime University, Fiskehamnsgatan 1, 211 18 Malmö, Sweden)

Abstract

This paper aims to assess the direct economic impact on the maritime sector from its inclusion in the European Union-Emission Trading System (EU-ETS). The Monitoring, Reporting and Verification (MRV) data are analysed for the estimation of carbon dioxide (CO 2 ) emissions within the European Economic Area (EEA). The economic impact assessment model used is scenario-based, and includes different price incentives, geographical coverage and emission allowances allocation methods. According to our findings, in case the emission allowances are fully auctioned or partially free allocated on the basis of a uniform benchmark, the increased costs would be disproportional among the maritime segments. Such a scheme would penalise Roll-on/Roll-off (RoRo) and Roll-On/Roll-Off/Passenger (RoPax) segments due their high fuel consumption per transport work in relation to oil tankers and bulkers. The establishment of differentiated benchmarks per segment seems to be a prerequisite for the effective inclusion of shipping in the EU-ETS that will reward energy efficient vessels in each segment and avoid competition distortion within the maritime industry.

Suggested Citation

  • Anastasia Christodoulou & Dimitrios Dalaklis & Aykut I. Ölçer & Peyman Ghaforian Masodzadeh, 2021. "Inclusion of Shipping in the EU-ETS: Assessing the Direct Costs for the Maritime Sector Using the MRV Data," Energies, MDPI, vol. 14(13), pages 1-20, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:13:p:3915-:d:585451
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    Cited by:

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    2. Björk, Lisa & Vierth, Inge & Cullinane, Kevin, 2023. "Freight modal shift: A means or an objective in achieving lower emission targets? The case of Sweden," Transport Policy, Elsevier, vol. 142(C), pages 125-136.
    3. Tobia Piccoli & Matteo Fermeglia & Daniele Bosich & Paolo Bevilacqua & Giorgio Sulligoi, 2021. "Environmental Assessment and Regulatory Aspects of Cold Ironing Planning for a Maritime Route in the Adriatic Sea," Energies, MDPI, vol. 14(18), pages 1-31, September.
    4. Paula Pereda & Andrea Lucchesi & Thais Diniz & Rayan Wolf, 2023. "Carbon Tax in the Shipping Sector: Assessing Economic and Environmental Impacts," Working Papers, Department of Economics 2023_04, University of São Paulo (FEA-USP), revised 17 Jun 2024.
    5. Vierth, Inge & Ek, Karin & From, Emma & Lind, Joar, 2024. "The cost impacts of Fit for 55 on shipping and their implications for Swedish freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    6. Jason Monios, 2023. "The Moral Limits of Market-Based Mechanisms: An Application to the International Maritime Sector," Journal of Business Ethics, Springer, vol. 187(2), pages 283-299, October.
    7. Theodoros Syriopoulos & Efthymios Roumpis & Michael Tsatsaronis, 2023. "Hedging Strategies in Carbon Emission Price Dynamics: Implications for Shipping Markets," Energies, MDPI, vol. 16(17), pages 1-27, September.

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