A Comprehensive Study of Cold Ironing under FuelEU and EU ETS Regulations: Environmental and Economic Impacts Across Vessel Types

The European Union (EU) Emission Trading System (ETS) has been a major tool of the EU climate policy. Despite its significance, the EU ETS faces serious challenges regarding its function. One of the major issues that encumber its contribution in EU climate policy is value added tax (VAT) carousel fraud within it. This paper examined the ways this type of swindle is conducted and its economic impact. It analyses the parameters that facilitate it and evaluates the responses of the EU and its Member States and mainly the introduction of the reverse charge mechanism. It finally highlights the need to implement some changes to the EU ETS, the VAT provisions, and the way the national tax authorities and the EU coordinate. Finally, it suggests the introduction of a real-time VAT collection mechanism that can be an effective and feasible solution to the problem in general.

The paper provides an understanding of the EU ETS, revealing its cap-and trade system and the intricacies of emissions permits. It represents significant differences between the existing EU MRV regime and the upcoming EU ETS requirements. It shows the phased implementation, the expansion of the scope to include emissions of methane (CH4) and nitrogen oxide (N2O), and obligations for different types of vessels. It analyzes the consequences of non-compliance and penalties associated with not submitting allowances. Additionally, it discusses how shipping companies can effectively prepare for the EU ETS. From interpreting data and choosing the right fuel to implementing effective GHG plans, this paper provides actionable insights to ensure compliance while maximizing operational efficiency. The paper is tailored to seafarers, maritime professionals, ship managers and ship owners looking for a practical insight into the EU ETS. This paper will make it easier for you to manage the upcoming regulatory changes.

This chapter, from a monograph on climate change and European emissions trading, addresses the economic impact of the European Union (EU) Emissions Trading Scheme (ETS). The authors compare the expectations and predictions that accompanied the introduction of the system with the actual results after the first three years of emissions trading. Topics include the impact of the ETS on production costs and competitiveness, trading patterns (between sectors and countries), and the extent to which the EU ETS leads to actual investments in emission reduction and innovations. After reminding readers that any conclusions are preliminary at this point, the authors contend that the ETS is actually influencing operational and strategic decisions of energy intensive industries in the EU. There are also strong indications that the EU ETS actually contributes to emission reductions and to investment in the development and application of new, low-carbon technology.

On the road again! An economic and environmental break-even and hotspot analysis of reclaimed asphalt pavement and rejuvenators

Policy-making under uncertainty: Commentary upon the European Union Emissions Trading Scheme

This paper aims to assess the direct economic impact on the maritime sector from its inclusion in the European Union-Emission Trading System (EU-ETS). The Monitoring, Reporting and Verification (MRV) data are analysed for the estimation of carbon dioxide (CO2) emissions within the European Economic Area (EEA). The economic impact assessment model used is scenario-based, and includes different price incentives, geographical coverage and emission allowances allocation methods. According to our findings, in case the emission allowances are fully auctioned or partially free allocated on the basis of a uniform benchmark, the increased costs would be disproportional among the maritime segments. Such a scheme would penalise Roll-on/Roll-off (RoRo) and Roll-On/Roll-Off/Passenger (RoPax) segments due their high fuel consumption per transport work in relation to oil tankers and bulkers. The establishment of differentiated benchmarks per segment seems to be a prerequisite for the effective inclusion of shipping in the EU-ETS that will reward energy efficient vessels in each segment and avoid competition distortion within the maritime industry.

From 2021, an increasing percentage of the carbon emission growth in international air transport will be subject to offsetting under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Presently, it is still unclear if, and how, the existing EU emissions trading scheme (ETS) for aviation will continue. We assess the environmental impacts of different options (not) to continue with the EU ETS for aviation alongside CORSIA, and also discuss resulting monitoring, reporting, and verification (MRV) requirements. Our results indicate that any form of continuation of the EU ETS would have positive environmental effects especially in the early 2020s, when the coverage and environmental impact of CORSIA, which only tackles any post-2020 emission growth in international aviation, will still be low. If, moreover, a certain failure of CORSIA Certified Emission Reductions (CERs) to actually achieve emission reduction elsewhere is assumed, the environmental net benefit of CORSIA will be even lower. From both the policy and economic perspectives, these aspects may further strengthen the need to continue with the EU ETS for aviation. Possible options are to maintain the EU ETS in operation for domestic flights only, as a complement to CORSIA, or to keep it alive even for international flights within the European Economic Area (EEA), replacing CORSIA there as an equivalent measure. Another option to increase the environmental effectiveness of CORSIA, at least to some extent, could be to voluntarily extend it to domestic EEA flights. Administrative-wise, the CORSIA MRV system could be applied to a continued EU ETS to reduce transaction costs and to assure globally similar or even identical MRV standards, e.g., with regard to exemptions and eligible fuel monitoring methods.

The fight against climate change is one of the main global challenges of our time, and the European Union (EU) seeks to achieve climate neutrality and energy transition for the continent by 2050 through various policies. This research studies the economic implications of the EU Emissions Trading System (ETS) on European ports. By analysing various maritime scenarios, the study assesses how the ETS influences shipping routes, port competitiveness, and overall economic activity. A key finding is that the ETS imposes significant additional costs on shipping companies, which could lead to adjustments in routes and a shift in cargo volumes to ports in regions with less stringent environmental regulations. This could result in job losses in European port communities and reduce the competitiveness of European ports. In addition, the potential for carbon leakage, where shipping activities are simply relocated to regions with fewer emission controls, is explored.

Maritime ports represent an important ecosystem for pollutant emissions and, considering the ongoing energy transition, need to adopt new solutions to mitigate current emission levels. These emissions are partially avoidable if ships and vessels docked at the port use electric energy to feed their power needs instead of using their internal combustion engines. In Europe, there is an ongoing discussion on including such emissions in the European Union Emissions Trading System, which will represent added costs for maritime operators. Onshore power supply systems can contribute to the ongoing energy transition by allowing the use of electric power to feed docked ships. As a first step to contribute to the development of onshore power supply solutions, it is necessary to evaluate the added power needs that these systems would represent for the port. This paper presents a methodology that allows port operators to verify, straightforwardly and transparently, their power needs for onshore power supply applications. The methodology is based on the historical data of docked ships at the port or quay level and provides an energy analysis of each type of vessel to determine the power to be installed at the port so that it is possible to supply energy to different types of ships and vessels simultaneously. Additionally, the implemented methodology provides economic and technical decision support factors by comparing the fuel costs with electric power costs, assessing the potential for this transition to onshore power supply. The methodology is validated using a real case study for the Port of Lisbon, and obtained results demonstrate the potential for the installation of an onshore power supply in medium- to large-dimension maritime ports.

Several European countries have decided to phase out coal power generation. Emissions from electricity generation are already regulated by the EU Emissions Trading System (ETS), and in some countries like Germany the phaseout of coal will be accompanied with cancellation of emissions allowances. In this paper we examine the consequences of phasing out coal, for CO2 emissions, the electricity sector, and the broader economy. We show analytically how the welfare impacts for a phaseout region depend on i) whether and how allowances are canceled, ii) whether other countries join phaseout policies, and iii) terms-of-trade effects in the ETS market. Based on numerical simulations with a computable general equilibrium model for the European economy, we quantify the economic and environmental impacts of alternative phaseout scenarios, considering both unilateral and multilateral phaseouts. We find that terms-of-trade effects in the ETS market play an important role for the welfare implications across EU member states. For Germany, coal phaseout combined with unilateral cancellation of allowances is found to be welfare-improving if the German citizens value CO2 emissions reductions at 65 Euro per ton or more.

Several European countries have decided to phase out coal power generation. Emissions from electricity generation are already regulated by the EU Emissions Trading System (ETS), and in some countries like Germany the phaseout of coal will be accompanied with cancellation of emissions allowances. In this paper we examine the consequences of phasing out coal, both for the broader economy, the electricity sector, and for CO2 emissions. We show analytically how the welfare impacts for a phaseout region depend on i) whether and how allowances are canceled, ii) whether other countries join phaseout policies, and iii) terms-of-trade effects in the ETS market. Based on numerical simulations with a computable general equilibrium model for the European economy, we quantify the economic and environmental impacts of alternative phaseout scenarios, considering both unilateral and multilateral phaseout. We find that terms-of-trade effects in the ETS market play an important role for the welfare effects across EU member states. For Germany, coal phaseout combined with unilateral cancellation of allowances is found to be welfare-improving if the German citizens value emissions reductions at 65 Euro per ton or more.


 
 
 This paper analyzes the international climate protection instrument Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is based on the International Civil Aviation Organization (ICAO) Assembly No. A39-3, and its relation to the European Union Emissions Trading System (EU-ETS) in aviation, which is based on Directive 2008/101/EC. It is still unclear whether or to what extent the already existing EU-ETS in aviation can continue due to CORSIA. Questions regarding the implementation, enforcement and practicability of the climate protection instruments remain. The aim of this paper is to present a comparative analysis of the two climate protection instruments. In particular, to explore the question of the legal relationship between CORSIA and the EU-ETS in aviation as well as the legal compatibility of the two climate protection instruments is essential. It will also explore how the European Union (EU) and especially Germany intends to implement CORSIA in parallel to the EU-ETS in aviation. Germany actively participates in international and European discussions and contributes towards harmonizing the implementation of CORSIA with the EU-ETS, however, implementing CORSIA raises environmental concerns and brings challenges due to conflicting European and international rules. Therefore, this paper explores how Germany manages these conflicts and strives to strike a balance between regional and global approaches to mitigate the environmental impact of aviation. This conceptual paper analyzes relevant international, European, German legal instruments and textbooks, journal articles, academic works, and reports.
 
 

Future perspectives on sustainable tribology

PurposeIn February 2009, the European Union’s (EU) Directive for the inclusion of aviation into the EU Emissions Trading Scheme (EU-ETS) for CO2-emissions came into force. From 2012 onwards, the EU-ETS will cover virtually all flights departing or arriving in the EU. As aircraft operators (i.e. airlines) will be required to hold emission allowances for all flights that are subject to the EU-ETS, the economical impacts of the system are currently being discussed. This paper aims at estimating and analysing the economical impact of the EU-ETS on the aviation sector in total, on selected groups of airlines and on the administering states.Materials and methodsThis paper describes a simulation model for the economical impact of the EU-ETS. According to current plans, the initial allocation of emission allowances to airlines will be based on a benchmark which is calculated by dividing the 2004–2006 CO2-emissions by the transport performance of the year 2010. The simulation model calculates CO2 emissions and transport performance of European aviation for the timeframe 2004–2012. The approach is based on flight schedules for passenger and cargo air traffic coupled to an aircraft performance module. By use of this model, the benchmark and hence the initial allocation of emission allowances to airlines can be estimated. Using assumptions on the development of the CO2 allowance price, the economical impacts of the EU-ETS can be discussed.Results and discussionThe economic effects of the upcoming EU-ETS on the aviation sector in total, on selected groups of airlines and on the administering states are analysed and discussed. It is shown that additional to the freely allocated allowances, nearly all aircraft operators need to purchase allowances for about one third of their emissions in 2012. The total cost for the aviation sector is expected to be in the range between 1.9 and 3.0 billion € in 2012. Certain airline groups and administering EU States will be affected very differently by the new EU legislation. It is shown that particularly European network carriers will be affected by a competitive disadvantage compared to non-EU airlines.

Prekybos apyvartiniais taršos leidimais tikslas yra mažiausiomis sąnaudomis sumažinti išmetamų šiltnamio dujų kiekį. Nors teorija teigia, kad apyvartinių taršos leidimų (ATL) paskirstymo metodai esant tobulai konkurencijai neturi įtakos prekybos apyvartiniais taršos leidimais sistemos efektyvumui, Europos Sąjungos (ES) prekybos ATL sistemos įgyvendinimas parodė paskirstymo metodų ir prekybos ATL sistemos efektyvumo ryšį. Straipsnyje aptariama istorinio ir aukciono metodų įtaka prekybos ATL sistemos efektyvumui bei analizuojami santykinių taršos rodiklių taikymo būdai. Be to, lyginami ES nacionaliniuose ATL paskirstymo planuose naudoti metodai bei analizuojama galima ATL paklausa rinkoje. Pagrindinis straipsnio tikslas - išanalizuoti ATL paskirstymo metodus, įvardyti diskutuotinus klausimus ir rekomenduoti, kaip padidinti ES prekybos ATL sistemos efektyvumą.