exceeded and usually allow for offsetting as opposed to elimination of emissions. A
cap-and-trade program sets a total aggregated cap on emissions and allocates
emission allowances that can then be traded by emitters.
Subsidies can be used to provide direct financial support for mitigation. Under the
Freight Technology Incentives Program, subsidies are provided by Transport
Canada to encourage the employment of energy-efficient technologies (Nikolakaki
2013).
The global application of market-based measures is essential to avoid carbon
leakage and competitive distortions especially given the relative ease with which
ships are able to change their legal jurisdiction and register flags of convenience with
more lenient carbon regulation. A maritime ETS or a carbon tax, or some hybrid
system of emission trading with a price floor and/or ceiling, could provide costefficient emission reductions allowing for the fullest range of responses by shipowners. An additional advantage of a tax or auction of permits is that the funds raised
could be used to support technological innovation, cover administrative costs, and be
used to redistribute funds toward developing countries and climate change funds. A
key challenge for such a system is the costs of administering, monitoring, and
enforcing these measures. Given the myriad of options available for mitigation in
the shipping industry, market-based mechanisms have the advantage of not
attempting to pick the technological or operational fix. On the other hand, a shortterm option like LNG may require a combination of subsidies and port dues to
effectively accelerate the large capital infrastructural costs involved.
10.5 Sustainability Initiatives in Maritime Transport
Beyond regulatory measures and IMO strategies, there have been a number of
government-led initiatives for sustainability in transport more generally and maritime transport in particular that have emerged. The 2011 EC White Paper on
Transport defines a strategy toward competitive and resource-efficient transport
systems and a number of objectives and targets that relate to the logistics chains,
promotion of more energy-efficient modes of transport at a larger scale, and reduction in emissions. Another example is the 2012 China Green Freight Initiative
(CGFI) that seeks to improve fuel efficiency, reduce CO 2 emissions, and adopt
cleaner technologies in freight transport. Other states have also promoted sustainability targets and measures (Benamara et al. 2019).
There are also numerous industry-led voluntary actions and initiatives. Maersk,
for instance, has developed an “eco voyage” maritime software tool which can help
cut fuel costs and make a voyage plan resulting in minimum fuel consumption. CMA
CGM decided to equip its future giant containerships with engines using LNG meant
to bring about large reductions in pollution emissions. Examples of voluntary selfregulation in maritime transport include the Clean Cargo Working Group that provides tools to help understand and manage sustainability impacts, the Sustainability
Shipping Initiative that brings leading companies to promote a sustainable future,
166
A. Papandreou et al.
cap-and-trade program sets a total aggregated cap on emissions and allocates
emission allowances that can then be traded by emitters.
Subsidies can be used to provide direct financial support for mitigation. Under the
Freight Technology Incentives Program, subsidies are provided by Transport
Canada to encourage the employment of energy-efficient technologies (Nikolakaki
2013).
The global application of market-based measures is essential to avoid carbon
leakage and competitive distortions especially given the relative ease with which
ships are able to change their legal jurisdiction and register flags of convenience with
more lenient carbon regulation. A maritime ETS or a carbon tax, or some hybrid
system of emission trading with a price floor and/or ceiling, could provide costefficient emission reductions allowing for the fullest range of responses by shipowners. An additional advantage of a tax or auction of permits is that the funds raised
could be used to support technological innovation, cover administrative costs, and be
used to redistribute funds toward developing countries and climate change funds. A
key challenge for such a system is the costs of administering, monitoring, and
enforcing these measures. Given the myriad of options available for mitigation in
the shipping industry, market-based mechanisms have the advantage of not
attempting to pick the technological or operational fix. On the other hand, a shortterm option like LNG may require a combination of subsidies and port dues to
effectively accelerate the large capital infrastructural costs involved.
10.5 Sustainability Initiatives in Maritime Transport
Beyond regulatory measures and IMO strategies, there have been a number of
government-led initiatives for sustainability in transport more generally and maritime transport in particular that have emerged. The 2011 EC White Paper on
Transport defines a strategy toward competitive and resource-efficient transport
systems and a number of objectives and targets that relate to the logistics chains,
promotion of more energy-efficient modes of transport at a larger scale, and reduction in emissions. Another example is the 2012 China Green Freight Initiative
(CGFI) that seeks to improve fuel efficiency, reduce CO 2 emissions, and adopt
cleaner technologies in freight transport. Other states have also promoted sustainability targets and measures (Benamara et al. 2019).
There are also numerous industry-led voluntary actions and initiatives. Maersk,
for instance, has developed an “eco voyage” maritime software tool which can help
cut fuel costs and make a voyage plan resulting in minimum fuel consumption. CMA
CGM decided to equip its future giant containerships with engines using LNG meant
to bring about large reductions in pollution emissions. Examples of voluntary selfregulation in maritime transport include the Clean Cargo Working Group that provides tools to help understand and manage sustainability impacts, the Sustainability
Shipping Initiative that brings leading companies to promote a sustainable future,
166
A. Papandreou et al.