Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper

Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper

The International Maritime Organization (IMO) is currently considering developing market-based measures to meet the objectives of its Initial Strategy on the Reduction of Greenhouse Gas (GHG) Emissions from Ships (Initial IMO GHG Strategy). While market-based measures are to reduce GHG emissions fro...

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Main Authors: Dominioni, Goran, Englert, Dominik
Format: Technical Paper
Published: Washington, DC: World Bank 2022
Subjects:
CARBON
SHIPPING
CARBON PRICING
TRANSPORT
Online Access:http://hdl.handle.net/10986/37240
id okr-10986-37240
recordtype oai_dc
spelling okr-10986-372402022-08-04T21:13:46Z Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper Dominioni, Goran Englert, Dominik CARBON SHIPPING CARBON PRICING TRANSPORT The International Maritime Organization (IMO) is currently considering developing market-based measures to meet the objectives of its Initial Strategy on the Reduction of Greenhouse Gas (GHG) Emissions from Ships (Initial IMO GHG Strategy). While market-based measures are to reduce GHG emissions from international shipping as a matter of priority, some types of market-based measures, e.g. carbon levies or a cap-and-trade scheme without free distribution of emissions allowances, can raise significant revenues—thereby enabling an additional set of actions. Strategically using these revenues also appears more favorable than applying exemptions to address important equity considerations. Hence, the study investigates the unique potential of revenue-raising market-based measures to enable an effective and equitable energy transition and explores three questions: What could carbon revenues from international shipping be used for, who could be the recipients of such revenues, and how can adequate management of carbon revenues from international shipping be imagined? The study considers seven main revenue use options, of which some revenue uses appear more aligned with guiding principles of the Initial IMO GHG Strategy and other key desirable features (e.g., ability to deliver greater climate and development outcomes) than others. The analysis also suggests that splitting carbon revenues between the shipping sector and the use outside the sector could be a viable way forward. As primary recipients of carbon revenues, governments appear to be most suitable given the often blurred links between companies and countries in international shipping. However, to maximize climate and development outcomes, a share of carbon revenues may also be channeled to the private sector, including the shipping industry. The report stresses that expertise and experience from existing climate finance funds and international development organizations offering trustee services could be leveraged to inform and operationalize the management of carbon revenues from international shipping and to minimize transaction costs. 2022-03-30T17:06:08Z 2022-03-30T17:06:08Z 2022-04-01 Technical Paper http://hdl.handle.net/10986/37240 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Economic & Sector Work :: Other Environmental Study
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic CARBON
SHIPPING
CARBON PRICING
TRANSPORT
spellingShingle CARBON
SHIPPING
CARBON PRICING
TRANSPORT
Dominioni, Goran
Englert, Dominik
Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper
description The International Maritime Organization (IMO) is currently considering developing market-based measures to meet the objectives of its Initial Strategy on the Reduction of Greenhouse Gas (GHG) Emissions from Ships (Initial IMO GHG Strategy). While market-based measures are to reduce GHG emissions from international shipping as a matter of priority, some types of market-based measures, e.g. carbon levies or a cap-and-trade scheme without free distribution of emissions allowances, can raise significant revenues—thereby enabling an additional set of actions. Strategically using these revenues also appears more favorable than applying exemptions to address important equity considerations. Hence, the study investigates the unique potential of revenue-raising market-based measures to enable an effective and equitable energy transition and explores three questions: What could carbon revenues from international shipping be used for, who could be the recipients of such revenues, and how can adequate management of carbon revenues from international shipping be imagined? The study considers seven main revenue use options, of which some revenue uses appear more aligned with guiding principles of the Initial IMO GHG Strategy and other key desirable features (e.g., ability to deliver greater climate and development outcomes) than others. The analysis also suggests that splitting carbon revenues between the shipping sector and the use outside the sector could be a viable way forward. As primary recipients of carbon revenues, governments appear to be most suitable given the often blurred links between companies and countries in international shipping. However, to maximize climate and development outcomes, a share of carbon revenues may also be channeled to the private sector, including the shipping industry. The report stresses that expertise and experience from existing climate finance funds and international development organizations offering trustee services could be leveraged to inform and operationalize the management of carbon revenues from international shipping and to minimize transaction costs.
format Technical Paper
author Dominioni, Goran
Englert, Dominik
author_facet Dominioni, Goran
Englert, Dominik
author_sort Dominioni, Goran
title Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper
title_short Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper
title_full Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper
title_fullStr Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper
title_full_unstemmed Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Technical Paper
title_sort carbon revenues from international shipping : enabling an effective and equitable energy transition - technical paper
publisher Washington, DC: World Bank
publishDate 2022
url http://hdl.handle.net/10986/37240
_version_ 1764486785954480128

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