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GHG Emissions from the International Goods Movement by Ships and the Adaptation Funding Distribution
Abstract
The GHG reduction from ships has attracted international attention. As the major transportation mode in international trade, how the reduction cost influences the international trade is becoming a major concern. How to allocate the funds collected from the emission regulation is also in controversy. This chapter summarizes the policy instruments under discussion in the International Maritime Organization and discusses the advantages of market based instruments. Using the Ship, Trade, Traffic and Emission Model, this chapter calculates the impact of ship-based GHG reduction cost on the international trade. The impact is small for most countries, but relatively large for small island countries, creating an equity issue ready to be resolved. The ongoing debate between the common but differentiated responsibility and equal treatment for ships principle is documented. This chapter proposes that all countries need to reduce GHGs but developing countries, especially small island countries, should get more benefits.
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