Emission trading for Nox and SOx

The Swedish Shipowners’ Association’s (SSA’s) proposal for an emission trading scheme could potentially contribute significant environmental improvements and a total of SEK 17 billion per year in gains for society as a whole, state the investigators working with the Government inquiry, “Trade in emission rights for sulphur dioxide and nitrogen oxide, including ships.” The outcome of the investigation was presented on 2 May 2007.
According to the Government’s investigators, SSA’s proposal from May 2006 for the implementation of an integrated system for trading in emission credits for sulphur dioxide and nitrogen oxide should be seen comprising the background to the Government’s inquiry.
The outcome of this Government inquiry was published on 2 May 2007 and includes the following points:
• Significant quantities of sulphur dioxide and nitrogen oxide are emitted by ships plying EU waters and further measures to reduce these emissions are urgent.
• It is technically possible to design satisfactory administrative processes for an integrated trading system in sulphur dioxide and nitrogen oxide emissions in which ships are included.
• The extent of exchangeability of emissions from differing sources, on land, on the sea and between different regions, is important in this context and requires further analysis.
• Depending on the degree of exchangeability between emissions from different sources, the emission trading scheme has in the short and medium term, a potential to contribute to significant environmental improvements.
• The system for trading in emission credits for sulphur and nitrogen oxide, should be implemented in an international context.
• In the short-term, international laws have not been designed for an integrated emission trading system, which needs further attention.
• The Governmental report does not make any recommendations as to whether a system for trading in emission credits should be introduced or how any such system should be designed.
– At SSA we are of the opinion that it is very positive that the government investigators have found that the proposal for an emission trading scheme has the potential to contribute to significant improvements in the environment and, at the same time, provide gains to society as a whole of SEK 17 billion per year. It is now important that any unresolved issues will be quickly investigated so that a pilot project, for example, in the North Sea, can be undertaken and that, subsequently, an actual trading scheme can be established, states Håkan Friberg, Managing Director of SSA.
SSA believes that it is important that land-based industry, which is one of the benefactors in this open system, quickly and very clearly involves itself in the process of developing a trading system.
– We also wish to emphasise the importance of the system being designed, as the investigators note at the end of their summary, so that land-based industry can compensate high costs in environmental investments incurred at industrial plants by purchasing emission credits from shipping companies. In this manner both parties can be winners as the reduction in emissions takes place where it is the least expensive, concludes Håkan Friberg.