DEMO Project

Background

The SSA EU-wide emission trading system of NOx and SO2
The proposed emission trading system gives ship owners the possibility of refunds on emission reduction investments by selling emission reduction credits to other emitters. Other benefits for ship owners are that the proposed system is voluntary (no regional regulations and no charges), that it leads to fair competition and that it rewards environmentally proactive ship owners.

Marginal abatement costs of NOx and SO2 for land-based emitters and ships indicate that potential refunds for the ships could be in the region of 1000 €/ton reduced NOx and 200 €/ton reduced SO2. The entire report or short version can be downloaded on pdf, see links below:

The SEAaT proposal of emission trading within EU
The SEAaT proposal aims for two features in the regulations: Firstly, the shipowner's choice of abatement technology. Restricting the sulphur content of fuels prevents use of other abatement technologies, such as Seawater Scrubbing. Secondly, the optimisation of abatement across the fleet, so that the most cost effective abatement is used first, and the more expensive and extravagant methods of abatement are only used when there are no cheaper alternatives to use. Emissions Trading is the best way to enable this, consequently SEAaT supports market based mechanisms, such as trials or "offsetting", while the best long term strategy is developed.