Economic instruments for reducing emissions from sea transport

The massive emissions of sulphur dioxide and nitrogen oxides from shipping were overlooked for many years. When they did come under the spotlight they were regarded as difficult to regulate. International negotiations con- tinued for several years without yielding any significant results.

Last year, however, Sweden unilaterally introduced environmentally differ- entiated fairway and port dues, which give shipping lines financial incen- tives to buy low-sulphur fuel and invest in technologies to reduce emissions of nitrogen oxides.

The system has already shown to be effective, especially in reducing sulphur emissions. The impact, however, would be much greater if similar systems were introduced in other countries.

This report explains the importance of reducing emissions from shipping, and shows that measures at sea make economic sense. It also suggests how existing administrative obstacles can be overcome. This knowledge can and should be used by decision-makers at national and Europeanlevel.