Study supports trading to cut ship pollution

Environment Daily 1917, 08/07/05

Acid gases sulphur dioxide (SO2) and nitrogen oxides (NOx) from ships could feasibly be curbed via an EU-wide permit trading scheme, according to a consultancy report.

Acid emissions from ships are an increasing source of concern in Europe.  Three years ago Swedish shipowners proposed an EU-wide trading scheme for land and sea-based emissions of NOx and SOx.  The European Commission said it was interested in using economic instruments in general but raised practical concerns.

Carried out by consultancy PricewaterhouseCoopers, the new study answers these concerns, its authors claim.  Using existing technologies, ship emissions of SO2 and NOx can be monitored, verified and automatically reported, it says.  There is potential for such a scheme to be cost-efficient, and it could lead to substantial emission reductions.

The report does not include a full cost estimate but, using the existing CO2 emissions trading scheme as its model, recommends imposing the toughest demands on large emitters, whilst letting smaller emitters use "simplified and less expensive methods".

Martin Gavelius of PWC said the report had been very well received by the Commission's environment directorate, and that legislation was now "a possibility".  A Commission official said the EU executive was waiting for further studies on economic instruments to cut ships' air pollution before making decisions.

Follow-up: PWC Sweden http://www.pwc.com/se/eng/main/home/index.html,

project website http://www.seaat.org/DemoProject/,

press release http://www.pwc.com/se/swe/about/svcs/demoproject/demo_project.pdf,

report http://www.pwc.com/se/swe/about/svcs/demoproject/final_report2005.pdf.