Market-based instruments to reduce greenhouse gas emissions from ships: Taxonomy and assessment
International shipping is responsible for about 3 per cent of global carbon dioxide emissions. In the absence of climate policies, emissions are projected to double or triple in the period up to 2050 as world trade increases (Buhaug et al., 2009). To design and introduce climate policy for shipping is a complicated matter, however. According to the United Nations Framework Convention on Climate Change (UNFCCC), ‘developed country Parties should take the lead in combating climate change and the adverse effects thereof ’. As a consequence, in 1997 Parties to the UNFCCC adopted the Kyoto Protocol that commits Annex I countries (developed countries) to reduce their greenhouse gas (GHG) emissions. However, emissions from aviation and maritime transport were not included in these commitments, partly because the allocation of these emissions to countries is not straightforward. Rather, Article 2.2 of the Kyoto Protocol reads: ‘The Parties included in Annex I shall pursue limitation or reduction of emissions of greenhouse gases not controlled by the Montreal Protocol from aviation and marine bunker fuels, working through the International Civil Aviation Organization and the International Maritime Organization, respectively.’ The International Maritime Organization (IMO) is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships.