scholarly journals Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System

Energies ◽  
2021 ◽  
Vol 14 (22) ◽  
pp. 7487
Author(s):  
Nestor Goicoechea ◽  
Luis María Abadie
Keyword(s):  
Carbon Tax ◽  
Emission Trading ◽  
Climate Mitigation ◽  
Future Market ◽  
The European Union ◽  
Trading System ◽  
Marine Fuel ◽  
Slow Steaming ◽  
Optimal Speed ◽  
The Eu

Slow steaming is an operational measure in ocean-going vessels sailing at slow speeds. It can help climate mitigation efforts by cutting down marine fuel consumption and consequently reducing CO2 and other Greenhouse Gas Emissions (GHG). Due to climate change both the European Union (EU) and the International Maritime Organization (IMO) are analysing the inclusion of international shipping in the EU Emissions Trading System (ETS) in the near future or alternatively implementing a carbon tax. The paper proposes a methodology to decide the optimal speed of a vessel taking into account its characteristics and the factors that determine its economic results. The calculated cash flow can be used in valuation models. The methodology is applied for a case study for any container ship in a range from 2000 to 20,000 Twenty-foot Equivalent Units (TEU) on a leg of a round trip from Shanghai to Rotterdam. We calculate how speed reduction, CO2 emissions and ship owner’s earnings per year may vary between a business-as-usual scenario and a scenario in which shipping is included in the ETS. The analysis reveals that the optimal speed varies with the size of the vessel and depends on several variables such as marine fuel prices, cargo freight rates and other voyage costs. Results show that the highest optimal speed is in the range of 5500–13,000 TEUs whether or not the ETS is applied. As the number of TEUs transported in a vessel increases emissions per TEU decrease. In an established freight rate market, the optimal speed fluctuates by 1.8 knots. Finally, the medium- and long-term expectations for slow steaming are analysed based on future market prices.

Carbon border taxes raise international dispute risks

2021 ◽  
Keyword(s):  
Emission Trading ◽  
Climate Mitigation ◽  
Trade Disputes ◽  
Content Type ◽  
Adjustment Mechanism ◽  
Climate Policies ◽  
International Dispute ◽  
Demand Patterns ◽  
The Eu ◽  
Border Adjustment

Significance Increasingly demanding climate mitigation targets in some economies have raised concerns over industry competitiveness and possible relocations of carbon-intensive industries. The EU plans a ‘carbon border adjustment mechanism’ (CBAM), effectively a tax, by 2023, to penalise imports from economies without comparable climate policies. These types of measures strengthen industry support for such policies, but risk triggering trade disputes. Impacts Efforts to link different emission trading schemes will grow. Decarbonisation policies will change demand patterns for manufacturing inputs. Developing countries’ climate diplomacy will need to be coordinated with their trade ministries.

scholarly journals An Assessment of Carousel Value-Added Tax Fraud in The European Carbon Market

2017 ◽  
Vol 13 (2) ◽  
Author(s):  
Maria Berrittella ◽  
Filippo Alessandro Cimino
Keyword(s):  
Computable General Equilibrium ◽  
Emission Trading ◽  
Value Added ◽  
Carbon Market ◽  
Eu Ets ◽  
The European Union ◽  
Value Added Tax ◽  
Member States ◽  
Eu Member States ◽  
The Eu

AbstractThe literature on the European Union Emission Trading System (EU ETS) is by now very rich. Much is known about the efficiency, the effectiveness, and the environmental and distributional impacts of the EU ETS. Less, however, is known about the carousel value-added-tax (VAT) fraud phenomena in the European carbon market. This article evaluates the welfare effects of carousel VAT fraud in the EU ETS using a computable general equilibrium (CGE) analysis. According to our findings, if VAT fraud occurs in the EU ETS, the effects on welfare for the EU Member States are negative, with welfare loss significantly higher than the VAT fraud value. This article also discusses the reverse charge mechanism that EU Member States could adopt to reduce the VAT fraud phenomena in the European carbon market.

scholarly journals How to Reach the New Green Deal Targets: Analysing the Necessary Burden Sharing within the EU Using a Multi-Model Approach

Energies ◽  
2021 ◽  
Vol 14 (23) ◽  
pp. 7971
Author(s):  
Felix Kattelmann ◽  
Jonathan Siegle ◽  
Roland Cunha Montenegro ◽  
Vera Sehn ◽  
Markus Blesl ◽  
...  
Keyword(s):  
Emission Trading ◽  
Energy System ◽  
Burden Sharing ◽  
Total System ◽  
The European Union ◽  
System Perspective ◽  
Energy System Model ◽  
Eu Member States ◽  
Computational General Equilibrium ◽  
The Eu

The Green Deal of the European Union defines extremely ambitious climate targets for 2030 (−55% emissions compared to 1990) and 2050 (−100%), which go far beyond the current goals that the EU member states have agreed on thus far. The question of which sectors contribute how much has already been discussed, but is far from decided, while the question of which countries shoulder how much of the tightened reduction targets has hardly been discussed. We want to contribute significantly to answering these policy questions by analysing the necessary burden sharing within the EU from both an energy system and an overall macroeconomic perspective. For this purpose, we use the energy system model TIMES PanEU and the computational general equilibrium model NEWAGE. Our results show that excessively strong targets for the Emission Trading System (ETS) in 2030 are not system-optimal for achieving the 55% overall target, reductions should be made in such a way that an emissions budget ratio of 39 (ETS sector) to 61 (Non-ETS sector) results. Economically weaker regions would have to reduce their CO2 emissions until 2030 by up to 33% on top of the currently decided targets in the Effort Sharing Regulation, which leads to higher energy system costs as well as losses in gross domestic product (GDP). Depending on the policy scenario applied, GDP losses in the range of −0.79% and −1.95% relative to baseline can be found for single EU regions. In the long-term, an equally strict mitigation regime for all countries in 2050 is not optimal from a system perspective; total system costs would be higher by 1.5%. Instead, some countries should generate negative net emissions to compensate for non-mitigable residual emissions from other countries.

BETWEEN SPLENDID ISOLATION AND TENTATIVE IMPERIALISM: THE EU'S EXTENSION OF ITS EMISSION TRADING SCHEME TO INTERNATIONAL AVIATION AND THE ECJ'S JUDGMENT IN THE ATA CASE

2012 ◽  
Vol 61 (4) ◽  
pp. 977-991 ◽  
Author(s):  
Andrea Gattini
Keyword(s):  
Emission Trading ◽  
Leadership Role ◽  
Emission Trading Scheme ◽  
The European Union ◽  
Industrial Sectors ◽  
Strategic Issue ◽  
Trading Scheme ◽  
Splendid Isolation ◽  
The Eu ◽  
Energy Package

For the last 15 years the European Union (EU) has been particularly active, both internally and internationally, in the fight against global warming, and it is determined to continue to play a global leadership role in this strategic issue. Among the various market-based measures decided upon, the Emission Trading Scheme (ETS) for energy-intensive industrial sectors has been rightly described as the ‘flagship of the EU climate policy’.1 Even before proceeding to a general overhauling of Directive 2003/87 in the framework of the 2009 Climate and Energy package, the EU had decided to modify the Directive by including aviation activities in the ETS. Directive 2008/1012 provides that all flights from whichever aircraft operator taking off from or landing in the EU territory will be subjected to the ETS from 1 January 2012. For the year 2012 97 per cent of all emissions allowances will be freely assigned, from 2013 the amount will decrease to 95 per cent, whereas 15 per cent of all allowances will be auctioned. In reality the percentage of free allowances is much lower, about 60 per cent, because it takes as parameter the historical aviation emissions of the years 2004–06, when the air traffic was 40 per cent lower than it is now. The idea underlying the Directive is that aircraft operators will either purchase the necessary allowances in the market or will try to reduce their emissions by using bio-fuels (or else reducing the number of flights), with the second option becoming more economically attractive over time.

scholarly journals The International Influence of the Emissions Trading System in Mexico

2021 ◽  
pp. 91-107
Author(s):  
Alicia Gutierrez González
Keyword(s):  
Climate Change ◽  
Carbon Dioxide Emissions ◽  
Emissions Trading ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Learning By Doing ◽  
The European Union ◽  
Trading System ◽  
Reduce Carbon Dioxide ◽  
Emissions Trading System

AbstractThis article aims to give an overview of the international influence of the Emissions Trading System (ETS) in Mexico. It is divided into three parts. First, it briefly examines both the international Climate Change regime through the description of such instruments as the 1997 Kyoto Protocol and the 2015 Paris Agreement, and the national regime by reviewing as the 2012 General Law on Climate Change (LGCC), the National Emissions Registry (RENE) and its Regulations, as well as other instruments regarding mitigation from carbon tax and clean energy. Second, it analyzes the legal framework of the pilot phase of the ETS in Mexico (under the cap and trade principle) which seeks to reduce carbon dioxide emissions (CO2) only in the energy and industry sectors whose emissions are greater than 100 thousand direct tonnes of CO2. In doing so, it also explains the relevance of implementing an ETS as a cost-effective mitigation measure to achieve the Nationally Determined Contributions (NDCs) in order to reduce 22% greenhouse gas (GHG) emissions by 2030 (increasing to 36% if there is international support and financing) and 50% by 2050 as a developing country. Third, it focuses on the European Union Emissions Trading System (EU ETS) experience and shows that all its phases must be done gradually by adopting the learning-by-doing approach.

scholarly journals Environmental Assessment and Regulatory Aspects of Cold Ironing Planning for a Maritime Route in the Adriatic Sea

Energies ◽  
2021 ◽  
Vol 14 (18) ◽  
pp. 5836
Author(s):  
Tobia Piccoli ◽  
Matteo Fermeglia ◽  
Daniele Bosich ◽  
Paolo Bevilacqua ◽  
Giorgio Sulligoi
Keyword(s):  
Environmental Factors ◽  
Adriatic Sea ◽  
Emission Trading ◽  
Air Pollutant ◽  
Economic Consequences ◽  
Pollutant Emissions ◽  
Model Design ◽  
Emission Trading System ◽  
Trading System ◽  
The Eu

The technology of cold ironing (or shore-to-ship power) can meaningfully reduce greenhouse gases and air pollutant emissions from ships at the berth by powering the vessels from the electrical shore grid. While cold ironing constitutes an effective and affordable solution in northern Europe and America, economic, legal, and environmental factors still render this technology less attractive in southern Europe. This paper aims to unpack and analyze the economic, regulatory, and environmental factors that can foster cold ironing as a standard installation in the Mediterranean Sea. Based on a model design for the port of Trieste (Italy) as applied to a cluster of target ports in the Adriatic Sea (in Italy, Croatia, and Greece), this article evaluates the cold ironing payback period by comparing costs of shore side-plants with environmental externalities and O&M costs. Moreover, the paper addresses key regulatory bottlenecks arising in different European jurisdictions with regard to the setting-up and development of cold ironing, while appraising the legal and economic consequences of deploying cold ironing in light of the future inclusion of the maritime sector in the EU Emission Trading System.

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