Integration of maritime transport in the EU emissions trading system

July 13, 2021

The Oeko Institute along with T&E has published a report on the integration of maritime transport in the EU emissions trading system (ETS). It looks through the various policy options on the table (the geographical scope, regulated entity, allocation method, use of revenues) as well as examining the compatibility of a shipping ETS with measures currently being discussed at the IMO. The main finding is that the inclusion of shipping in the ETS would not pose any technical barrier of a global emissions reduction measure. Instead, the shipping ETS may accelerate IMO discussions.

Regarding the design of the instrument, the report finds that for environmental effectiveness the measure should be applied wider than ‘limited-scope’ (covering at least some voyages between EU and non-EU ports) and that no free allowances should be awarded. The report will be key in supporting the upcoming evidence-based discussions on the shipping ETS in the Council and the Parliament.

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