The Brookings Institution, a US based non-profit organisation, has released a key report that analyses the economic impact of a global system for maritime GHG emissions reduction on the United States' economy. The results will be used to indicate the likely impacts for the U.S. economy and inform decision makers on whether such a policy is in the best interest of the United States. The report, entitled "Sink or Swim: The Economic Impacts of    an International Maritime Emissions System for Greenhouse Gases on the United States", surveys the International Maritime Organization's (IMO) progression into mandatory emissions regulations for existing ships. It attempts to propel the progression gap by analysing the impacts of suggested global systems currently under consideration by the IMO.
The European Union has proposed a number of options, such as the inclusion of ships in their Europe-wide cap-and-trade program for GHG emissions, the European Union Emissions Trading System (EU ETS). This follows the EU's move to include aviation emissions in the EU ETS at the beginning of 2012.
Authors Nigel Purvis and Samuel Grausz use economic models to assess the benefits and impacts and costs of a global maritime emissions regime, something that few studies have focused on previously. The study also uses aforementioned models to estimate the changes in prices and demand for U.S. imports and exports resulting from such global policy enforcements.
Current IMO standards mandate a 30 percent reduction in fuel consumption and thus greenhouse gas emissions by 2025, and the IMO expects this will reduce emissions from ships by 180-240 million metric tons annually by 2020. The regulation of emissions from the entire global shipping fleet is key to achieving these targets.
Source: Carbon Positive