Environmental Engineering Reference
In-Depth Information
Table 1. CO
2
Emission in 2020 and 2050 (Unit: Mmt) (Buhaug et al., 2009)
Year
A1B
A1F
A1T
A2
B1
B2
2020
1345
1293
1294
1188
1167
1114
2050
3595
3644
3634
2878
2735
2449
A1B: Balanced scenario across energy sources
A1F: Fossil-intensive scenario
A1T: A1T: Technologically advanced and predominantly non-fossil scenario
A2: Heterogeneous world with continuously increasing global population
B1: Increasing population growth with rapid change in economic structures
B2: Emphasis on local solution of economic growth and sustainability
to carbon emissions as does freight transport by
air, even though shipping emissions are 40 times
lower than air emissions per ton of freight (Buhaug
et al
., 2009). Except for the short term disruption
due to global economic crisis from 2008 (The
Economist 2009), international trade will not
cease grow. The IMO projected the CO
2
growth
in year 2020 and 2050 under six scenarios used by
the IPCC (Table 1). Under the business-as-usual
scenario, CO
2
from ships will be at least double
between now and 2050. Because of the trade
growth, faster ships, and fewer ship retirements,
the emissions will be almost tripled at the worse
scenario, showing how urgent it is to control and
reduce CO
2
from the maritime industry (Buhaug
et al
., 2009).
CO
2
is the most important Greenhouse Gas
(GHG) among various GHGs emitted by ships.
The total ship-based CO
2
emissions were around
1,046 million metric tons or about 3.3% of the
world total in 2007 (Buhaug,
et al
., 2009). Ships
are one major source of some other GHGs as well
(Buhaug,
et al
., 2009; Wang
et al
., 2009), includ-
ing volatile organic compounds (VOC), methane
(CH
4
), black carbon (BC), particulate organic
matter (POM), nitrogen oxide (N
2
O) and carbon
monoxide (CO). The emissions have been re-
ported by the Marine Environmental Protection
Committee (MEPC) under the International
Maritime Time Organization (IMO), the major
regulatory body of the international shipping
industry (Buhaug
et al
., 2009). The MEPC is also
the major platform where the international com-
munity discusses policy instruments to reduce
ship-based GHGs.
The international community has recognized
that the shipping industry is one of the least
regulated industries. The Kyoto Protocol has put
most industries in most developed nations into a
binding commitment to reducing GHG. However,
the authority to regulate GHG from the shipping
industry and the aviation industry was given to the
International Maritime Organization (IMO) and
International Civil Aviation Organization (ICAO),
respectively. Since then, the MEPC has conducted
several meetings to discuss GHG inventories and
available policy instruments since 1996.
The objective of this chapter is to review
policies focusing on vessel-based GHG reduction
and investigate the impact of regulation costs
on vessel-based GHG reduction. The impact of
GHG reduction costs on maritime industry and
international trade will be discussed. It will also
look at the fund distribution issue and the potential
impact on various countries.
BACKGROUND
Policy Options in Reducing
Vessel-Based GHGs
Policy makers and stakeholders have identified
a number of policy instruments in reducing CO
2
emissions, including the Marine Emission Trade
