Emission trading schemes  

ETS

Zoi Nikopoulou - UGOT

The Kyoto Protocol introduced the concept of emissions control to a global audience. Under this agreement, in 2005 the EU established a European Trading Scheme (ETS) for trading carbon dioxide (CO2).

But ‘cap-and-trade’ programs were already in operation in the US, where nitrogen oxides (NOx) and sulphur oxides (SOx) had been traded since 1994. In fact, in Los Angeles ships can also participate, exchanging credits with land installations. US EPA proclaims their success.
 
The European Union’s Emission Trading Scheme (EU ETS) currently covers most large industrial installations, but not as yet transport.          However, the European Commission is currently preparing a report on how aviation could be brought into the EU ETS. The  other transport sectors including maritime will also come into the spotlight as consideration is soon given to expanding the EU ETS after 2012. There are many options for how emissions trading could be applied to the transport sector(s). Such a scheme could cover all transport sectors or separate schemes for sub sectors such as road or maritime transport. The scheme could be ‘open’ i.e. linked to the EU ETS and other trading systems, or ‘closed’ i.e. restricted to the sector itself. Then there are a wide number of other design options and criteria to consider. Maritime transport is being accounted for the first time for its emissions – mainly NOx and SOx- regulation and policy are being formed.
 
The study addresses the following:

1.  the theoretical framework of emission trading including review of policy instruments,  measurements on emission outputs and depositions in order to frame environmental necessities, policy ambitions and  possible caps for new schemes
2.  examples of trading schemes around the world for regulated sectors
3.  potential options for a  Maritime transport trading scheme particularly  within the environmentally sensitive seas of the European North.