The inclusion of shipping in the European Union’s Emissions Trading System (ETS) is a game changer for ocean transportation.
The World Bank foresees that the Carbon
Emissions Trading (CET) market may develop into the world's largest commodity
trading market, expected to exceed $3 trillion in the near future. The Bank
also expects CET futures, as well as the carbon finance market as a whole, to
replace oil as the world's largest market.
We show that the link between carbon
emissions trading and shipping is strong, particularly between CET and dry bulk
shipping. The link becomes stronger during periods of external shocks, such as
Brexit, Covid-19 and China-US trade frictions.
But how can our results be
intelligently used by shipowners for greater profit? How can they support the environmental
sustainability decisions of shipping companies? And how can governments include
shipping in emissions trading systems?
This pioneering research (published Open
Access in Energy Economics) took three years to complete. Sincere thanks are due to the funding
organizations that allowed us to carry out the work. These were:
1. National Natural
Science Foundation of China
2. The 111 Project of
China
3. The Postdoctoral
Research Foundation of China
4. The Liaoning
Revitalization Talents Program
5. The Liaoning
Natural Science Foundation
6. The Dalian Academy
of Social Sciences
7. The Dalian
Federation of Social Sciences (Key Project)
HH
