Carbon pricing options for international maritime emissions

The research assesses offsetting schemes, emissions trading schemes (ETS), and climate levies against four criteria: effectiveness, non-discrimination (NMFT), common but differentiated responsibilities (CBDR-RC), and administrative burden. The authors conclude that a climate levy is the most suitable instrument because it provides the highest investment certainty for ship owners, has lower transaction costs than trading schemes, and allows for revenue redistribution to support impacted states. The paper urges the International Maritime Organization (IMO) to adopt a robust carbon price quickly due to the long lifespan of ships currently being built.

• A climate levy is identified as the most appropriate measure for decarbonizing the international maritime sector, as it offers investors more certainty than other options and is most likely to incentivize both operational and technical emission reductions.
• Compared to offsetting and emissions trading schemes, a climate levy has medium transaction costs and lower administrative burdens because shipping companies are not required to trade allowances or purchase offset credits.
• Emissions trading schemes (ETS) are deemed unsuitable for achieving specific targets like "at least" 50% reduction because price incentives decrease as emissions fall, creating uncertainty that discourages investment in efficient technology.
• Offsetting schemes are viewed as the least effective option for CBDR-RC (common but differentiated responsibilities and respective capabilities) because they do not generate revenues that can be redistributed to affected states.

APA

NewClimate Institute (2019). Carbon pricing options for international maritime emissions. http://www.newclimate.org/resources/publications/carbon-pricing-options-for-international-maritime-emissions

Chicago

NewClimate Institute. Carbon pricing options for international maritime emissions. 2019. http://www.newclimate.org/resources/publications/carbon-pricing-options-for-international-maritime-emissions.

Wikipedia

{{cite report |author=NewClimate Institute |title=Carbon pricing options for international maritime emissions |date=19 March 2019 |url=http://www.newclimate.org/resources/publications/carbon-pricing-options-for-international-maritime-emissions |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2019carbon, author = {{NewClimate Institute}}, title = {{Carbon pricing options for international maritime emissions}}, institution = {NewClimate Institute}, year = {2019}, month = mar, url = {http://www.newclimate.org/resources/publications/carbon-pricing-options-for-international-maritime-emissions}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }