Linking Emissions Trading Schemes for International Aviation and Maritime Emissions

The paper argues that international aviation and maritime emissions must be regulated as separate sectors to avoid emissions leakage and economic inefficiency. It proposes the implementation of global emissions trading or fee regimes, noting that such systems could generate significant revenue for climate mitigation and adaptation in developing countries. The author evaluates linking options, concluding that a unilateral link with the Clean Development Mechanism (CDM) is the most practical first step due to ease of implementation and allowance supply, while bilateral links (such as with the EU ETS) are more complex, requiring international treaties and scheme compatibility. The document also discusses the International Maritime Emission Reduction Scheme (IMERS) as a differentiated approach to shipping emissions.

• International aviation and maritime emissions are significant and growing, with 2000 CO2 estimates between 400 and 675 MtCO2 for aviation and 425 and 900 MtCO2 for shipping. These emissions have grown by 2% to 6% annually over the last 15 years.
• Attempts to allocate international emissions to countries under the Kyoto Protocol have failed. The author argues that differential regulation between Annex I and non-Annex I parties would lead to 'leakage', where emissions shift to unregulated parties, reducing overall effectiveness.
• The author proposes treating aviation and maritime transport as separate sectors with their own regulatory regimes rather than allocating emissions to countries. This approach avoids economic distortions and allows for the use of revenue from auctioned allowances to fund mitigation and adaptation in developing countries.
• For a separate international aviation or maritime trading scheme, the Clean Development Mechanism (CDM) is identified as the best candidate for a unilateral link because of the perceived quality of allowances, ease of establishment, and large supply.
• Bilateral links, such as one with the EU ETS, are significantly more difficult to implement than unilateral links. They require the schemes to be 'compatible' and would likely necessitate a binding international treaty to address legal issues and environmental integrity.
• The International Maritime Emission Reduction Scheme (IMERS) is proposed as a global but differentiated regime. It would apply an emissions charge to cargo destined for Annex I Parties, with revenue used for technology transfer, purchasing CO2 credits, and adaptation in developing countries.

APA

Haites, E. (2008). Linking Emissions Trading Schemes for International Aviation and Maritime Emissions. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/working-paper-linking-4.pdf

Chicago

Haites, Erik. Linking Emissions Trading Schemes for International Aviation and Maritime Emissions. Climate Strategies, 2008. https://climatestrategies.org/wp-content/uploads/2014/11/working-paper-linking-4.pdf.

Wikipedia

{{cite report |last1=Haites |first1=Erik |title=Linking Emissions Trading Schemes for International Aviation and Maritime Emissions |publisher=Climate Strategies |date=October 2008 |url=https://climatestrategies.org/wp-content/uploads/2014/11/working-paper-linking-4.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{haites2008linking, author = {Haites, Erik}, title = {{Linking Emissions Trading Schemes for International Aviation and Maritime Emissions}}, institution = {Climate Strategies}, year = {2008}, month = oct, url = {https://climatestrategies.org/wp-content/uploads/2014/11/working-paper-linking-4.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }