Inclusion of Shipping in the EU-ETS: Assessing the Direct Costs for the Maritime Sector Using the MRV Data

This paper aims to assess the direct economic impact on maritime sector from its inclusion in European Union-Emission Trading System (EU-ETS). The Monitoring, Reporting and Verification (MRV) data are analysed for estimation of carbon dioxide (CO2) emissions within Economic Area (EEA). assessment model used is scenario-based, includes different price incentives, geographical coverage emission allowances allocation methods. According our findings, case fully auctioned or partially free allocated basis a uniform benchmark, increased costs would be disproportional among segments. Such scheme penalise Roll-on/Roll-off (RoRo) Roll-On/Roll-Off/Passenger (RoPax) segments due their high fuel consumption per transport work relation oil tankers bulkers. establishment differentiated benchmarks segment seems prerequisite effective shipping EU-ETS that will reward energy efficient vessels each avoid competition distortion industry.