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Towards a European Fuel Tax agreement

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A fuel tax agreement operates in the US and Canada which is known as the International Fuel Tax Agreement, or IFTA. Under the IFTA, truck operators (hauliers) record distance travelled and fuel consumed within each state/province (jurisdiction). Tax paid where fuel is purchased is later reconciled against actual use. Thanks to this reconciliation process, hauliers obtain a rebate from some jurisdictions and pay additional taxes to others.

Analysis of estimated index values of ships that have entered the fleet since 2009

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There is little publicly available information on how the design efficiency of ships that have entered the fleet since 2009 has developed. The IMO has published the energy efficiency design index (EEDI) of a limited number of ships launched since 2012, but the sample of ships is small and the time period limited. The published data show clearly, however, that estimated index values (EIV) and EEDIs of ships are well correlated.

Shipping emissions – the final EU climate frontier

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On 28 April 2015, the European Parliament was expected to ratify a Monitoring, Reporting and Verification (MRV) regulation for greenhouse gas (GHG) emissions from shipping. This briefing details how shipping emissions have increased by approximately 70% since 1990 and the EU's track record on cutting these emissions. Under current policies, the IMO's GHG study forecasts shipping CO2 emissions to increase by 50% to 250% by 2050, which would then represent between 6% to 14% of total global emissions. While emissions from other sectors have started declining or are looking to peak in 2020, none of the “business as usual” scenarios for shipping foresee a decline in shipping emissions before 2050. The EU has promised measures for shipping emissions three times since 2009 and the Commission’s communication on Energy Union made it clear that all sources of emissions should contribute to the EU 2030 reduction target.

EU biofuels reform – endgame for bad biofuels

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On 28 April 2015, the European Parliament was expected to adopt a final compromise for the reform of EU biofuels policy that would then be endorsed by the Council of the EU. This briefing outlines how, after several years of difficult discussions, this compromise lacks the necessary ambition to tackle properly the issue of indirect land-use change (ILUC). However, it sets some key principles for the phase-out of first-generation biofuels, recognises the problem of ILUC emissions and introduces new measures for other alternatives such as advanced biofuels and renewable electricity. T&E stresses that these elements will need to be captured in the 2030 transport fuels policies.

Study of historical trends in ship design efficiency

This first-time study of the historical development of the efficiency of new ships shows that, in fact, the efficiency of new ships has actually deteriorated since 1990 by 10% on average. This demonstrates the failure of market forces to reduce ship and shipping emissions and emphasizes the need for regulation.

Aviation VAT review – solving twin challenges

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Aviation's tax-exempt status has always been an unjustified subsidy to the most carbon-intensive mode of transport. As the EU's commits to further emissions reductions and to a shift towards environmental taxation, so arguments for abolishing these exemptions are stronger than ever. This briefing outlining what steps the EU needs to take, and how ending these exemptions can reduce emissions and create employment.

Reasons to change the zero-rated criteria for biomass in the EU ETS

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This study is published to co-inside with the European Commission's public consultation on revising the EU emissions trading system (ETS) for the period 2021-2030. The current EU ETS only accounts for smokestack emissions but erroneously rates the carbon emissions of biomass burning at zero. The study reviews the current use of biomass under the EU ETS and proposes steps to ensure that biomass use is only incentivised when it delivers real GHG emissions reductions.

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