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GHG reduction from ships, cost effectiveness, and equity issue

GHG reduction from ships, cost effectiveness, and equity issue
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  • The preamble of the UNFCCC acknowledges “that the global nature of climate change calls for the widest possible cooperation by all countries and their participation in an effective and appropriate international response, in accordance with their common but differentiated responsibilities and respective capabilities and their social and economic conditions” (UNFCCC 1997).
  • GATT Article XX on General Exceptions lays out a number of specific instances in which WTO members may be exempted from GATT rules. Two exceptions are of particular relevance to the protection of the environment: paragraphs (b) and (g) of Article XX. The measure needs to be either:necessary for the protection of human, animal or plant life or health (paragraph (b)) or relating to the conservation of exhaustible natural resources (paragraph (g)).

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  • Policy Adjustment and Coordination for Equal CO2 Mitigation Cost Sharing in the International Shipping
    By Haifeng Wang
    College of Earth, Marine, and Environment
    hfwang@udel.edu
    College of Earth, Marine, and Environment
  • Background
    Ships emitted about 1067 million metric tons of CO2 in 2007
    This is 3.3% of total CO2 emissions
    The sixth largest if ship industry were a country, exceeding Germany
    Policy options have been developed and discussed under International Maritime Organization (IMO)
    The Marine Environmental Protection Committee (MEPC)
    The first MEPC meeting targeting at CO2 was in 1996
    The latest: MEPC 59 in July, 2009
    The Updated 2000 IMO GHG Study
    The Kyoto Protocol: Shipping Emissions to IMO and Aviation Emissions to ICAO
    College or Department name here
    1
  • From Corbett and Winebrake, 2008
    College of Earth, Marine, and Environment
  • Background: Policy Options
    The recent debate in MEPC (March, 2009, July, 2009)
    Available Policy instruments:
    Emission Trade System (open and closed ETS)
    International Compensation Fund (ICF)
    Energy Efficiency Design Index (EEDI)
    Energy Efficiency Operational Index (EEOI)
    Ship Energy Management Plan (SEMP)
    Interim and voluntary package under IMO to reduce vessel-source emissions
    Voluntary EEDI and EEOI
    No binding commitment to reduce emissions
    To be discussed in MEPC 60 in March, 2010
    College of Earth, Marine, and Environment
    3
  • Background: Legal Debate
    Common but Differentiated Responsibility (CBDR) vs Equal Treatment for All Ships
    Developing countries:
    The fuel consumption from ships should be deemed as “Survival Emissions”
    Developed countries should be responsible for most emissions emitted by ships
    Developed countries:
    Equal treatment is the principle of IMO itself
    Most registered fleets have been already in developing countries (Flag of Convenience)
    College of Earth, Marine, and Environment
    4
  • Climate Policy After Kyoto
    Who will take the lead in Ship-based GHG reduction after Kyoto?
    International Maritime Organization or
    A universal GHG reduction regime
    What will happen in next MEPC meeting in IMO
    London, March, 2010
    Some stakeholders are not content with the progress in IMO
    EU threatened to act alone if IMO failed to regulate
    Voluntary approach may not reduce enough GHG
    College of Earth, Marine, and Environment
    5
  • Aim of this research
    Calculates the cost for CO2 reduction policies.
    Computes the reduction cost impact on the global trade
    Discusses the policy coordination and cooperation among different International organizations
    College of Earth, Marine, and Environment
    6
  • Methodology
    Activity-based method to estimate the CO2 emissions for Annex I and non Annex I countries
    Identify all targeted ships
    Calculate their annual fuel consumption based on engineering models
    Estimate the CO2 emissions from those ships
    Calibrate the ratio between CO2 reduction cost and trade cost based on Trade, Ship empirical movement, Ship parameters, and origin-destination Pairs (TSSP)
    Limit the research in North America
    College of Earth, Marine, and Environment
    7
  • College of Earth, Marine, and Environment
    8
  • College of Earth, Marine, and Environment
    9
  • Key Assumption: To achieve 20% CO2 reduction, the mitigation cost is between $0-120 per ton.
    College of Earth, Marine, and Environment
    10
  • Data
    Trade, Ship empirical movement, Ship parameters, and origin-destination Pairs (TSSP)
    Trade: Import Waterborne Data Bank
    Ship Empirical Movement: Entrances and Clearances by Army Corps of Engineering
    Ship Parameters: Lloyds shipment register dataset
    Origin-Destination Pairs: Entrances and Clearances by Army Corps of Engineering
    Distances between ports: On-line Port2Port Calculators
    College of Earth, Marine, and Environment
    11
  • College of Earth, Marine, and Environment
    12
  • Results
    College of Earth, Marine, and Environment
    13
  • The CO2 emissions and costs of some major Non-Annex I countries and maritime states
    * Exclude fleets registered in Taiwan but include fleets registered in Hong Kong and Macao
    College of Earth, Marine, and Environment
    14
  • Countries with highest CO2 cost/import value rate
    *Countries or territories are not non-Annex I either
    College of Earth, Marine, and Environment
    15
  • Policy Implications
    Small countries are losers in CO2 reduction policies
    Highest CO2 reduction/trade value ratio
    Diseconomy of scale
    They are victims of global warming too
    Sea level rise
    Climate change
    That means policy cooperation and coordination among countries and international organizations
    College of Earth, Marine, and Environment
    16
  • Policy Cooperation and Coordination
    International Maritime Organization
    CBDR:
    Countries have to reduce the emissions
    The payment is collected by an supervisory body
    Rebate the cost back to small developing countries
    World Trade Organization
    Special Tariff reduction
    Special treatment for small developing countries
    Environmental Exception for ships?
    College of Earth, Marine, and Environment
    17
  • College of Earth, Marine, and Environment
    18
    Thank You
    谢谢
    Thoughts or Comments?