The expansion of the Panama Canal and its impact on global CO 2 emissions from ships

As part of the discussions of the environmental effects of the expansion of the Canal through the construction of a third set of locks, the Panama Canal Authority (PCA) began to consider measuring the impact of the project on global CO 2 emissions in 2006. The hypothesis PCA intends to investigate whether the third set of locks will prompt reductions in total world CO 2 emissions or not. The Canal's third set of locks will prevent reaching the saturation point, and will avoid diversion of traffic to potentially longer alternative routes, such as the Suez Canal and Cape Horn, thereby reducing distances and fuel consumption. In addition, the widening of the Canal may promote the construction of modern-type post-Panamax vessels, making transportation of freight more efficient through economies of scale. This white paper will initiate an exploratory research on the subject based on two possible scenarios: an existing Canal and an expanded Canal. Both scenarios will take physical distances, closest alternative routes, as well as fuel consumption of vessels and other relevant modes of transportation into consideration.