Shipping industry plans "practical" cap-and-trade carbon reduction model, rejecting fuel tax
September 24, 2009
The shipping industry has launched a plan it says offers a “practical solution” to reducing carbon emissions in the international freight network.
The discussion paper, launched in London yesterday and backed by global shipping players, calls for a ‘cap-and-trade’ emissions scheme to encourage shipping operators to reduce emissions.
The Australian Shipowners Association (ASA) says the paper provides an alternative to a Danish proposal calling for a fuel level for international shipping.
ASA Executive Director Teresa Hatch says emissions trading makes more sense.
Market forces will ultimately reduce emissions, she says, with the system to incentivise better environmental practices.
“This new paper demonstrates how a global and open emissions trading system for shipping can work in practice,” she says.
“While improvements will continue to be gained through ship design and operational efficiency cap-and-trade is the only way to guarantee overall CO2 emissions reduction.”
ASA says it will be pressing the Federal Government to consider the new approach before the United Nations-led global CO2 reduction talks in Copenhagen later this year.