Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers

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, Salgmann, Rico, Brown, Jennifer
Format:	Report
Published:	Washington, DC: World Bank 2022
Subjects:	CARBON SHIPPING CARBON PRICING TRANSPORT
Online Access:	http://hdl.handle.net/10986/37241

id	okr-10986-37241
recordtype	oai_dc
spelling	okr-10986-372412022-04-18T16:47:15Z Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers Dominioni, Goran Englert, Dominik Salgmann, Rico Brown, Jennifer 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. 2022-03-30T17:22:28Z 2022-03-30T17:22:28Z 2022-04-01 Report http://hdl.handle.net/10986/37241 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Policy Paper
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 Salgmann, Rico Brown, Jennifer Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers
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	Report
author	Dominioni, Goran Englert, Dominik Salgmann, Rico Brown, Jennifer
author_facet	Dominioni, Goran Englert, Dominik Salgmann, Rico Brown, Jennifer
author_sort	Dominioni, Goran
title	Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers
title_short	Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers
title_full	Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers
title_fullStr	Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers
title_full_unstemmed	Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers
title_sort	carbon revenues from international shipping : enabling an effective and equitable energy transition - summary for policymakers
publisher	Washington, DC: World Bank
publishDate	2022
url	http://hdl.handle.net/10986/37241
_version_	1764486787790536704

Carbon Revenues From International Shipping : Enabling an Effective and Equitable Energy Transition - Summary for Policymakers

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