Climate change and shipping: Problems of regime compatibility

Abstract

Regulation of marine bunker fuel was not included in the Kyoto Protocol to the 1992 United Nations Framework Convention on Climate Change (UNFCCC). The Kyoto Protocol instead provided in Article 2.2 that Annex I countries were to pursue limitation of bunker fuel through the International Maritime Organization (IMO). In 1997 the IMO undertook its first study on greenhouse gas (GHG) emissions and shipping and in 2009 completed its second study. As part of its work in addressing climate change and international shipping, the IMO Marine Environment Protection Committee (MEPC), at its 60th session, established an Expert Group on Feasibility Study and Impact Assessment of Possible Marketbased Measures (Expert Group). The Expert Group prepared a study that was introduced at MEPC 61. The Expert Group Study assessed ten market-based proposals for reduction of ship-based GHG emissions. These included establishing a Greenhouse Gas Fund, a Leveraged Incentive Scheme to promote increased energy efficiency of ships, establishing a Ship Efficiency and Credit Trading system, a Vessel Efficiency System, and an Emission Trading System for international shipping. The introduction of market-based systems for emission reduction from international shipping introduces a new role for the IMO. In addition, the linkage between the 1992 UNFCCC and IMO Conventions contains elements of interregime conflict, such as, for example, the applicability of the principle of "common but differentiated responsibilities" (CBDR) of the 1992 UNFCCC and the "no more favourable treatment" (NMFT) of the IMO Conventions. This paper will critically assess the proposed market-based proposals for the reduction of GHG emissions from international shipping within the IMO legal structure and the problems of inter-regime linkage with the UNFCCC system.