Slow pace of regulation opens up opportunities

The consultancy envisages programmes that will help the sector prepare for any future compliance obligations, reward early actors for their contribution, and demonstrate decisive action to those outside the sector. Carpon Positive has recently produced a White Paper which outlines how voluntary, market-based action can help prepare for compliance-based schemes, stimulate technological advance, and inform the development of good regulation along the way. Continuing this theme, Carbon Positive will be initiating a consultation process to develop an action programme for trading experiments in 2011.

CEO Helena Athoussaki said: “Given the understandable difficulties IMO has in developing GHG regulation, we propose an experimental emissions-trading programme in shipping, based on voluntary participation, to complement the IMO’s work on market-based measures. We ask the IMO and governments to embrace such early action and recognise credible reductions under any future regulatory regime”.

The recent MEPC 61 meeting at IMO underscored the ongoing difficulties of securing consensus on GHG reduction measures in the face of the divergent principles of the IMO’s equal treatment of all parties and the UNFCCC’s common but differentiated responsibilities. It is also clear the work of MEPC’s expert group on market-based measures will yet take some time to ensure that any programme adopted is both balanced and workable. The Secretary-General’s opening speech at MEPC

Based on its 30 years experience in emissions markets and regulation, Carbon Positive supports the IMO position, which acknowledges the need for a considered approach that cannot be rushed, as being responsible. Yet Secretary-General Mitropoulos has also identified the need to move forward on GHG control “in good time so that entities outside this forum will be given no reason to doubt the seriousness with which we approach our task”.

John Palmisano, Commercial Director at Carbon Positive, said: “There is a way to reconcile these conflicting imperatives. An opportunity exists for those in the maritime sector of a mind to act now to show the sector is taking real and measurable action to reduce GHG emissions. “

“The direct regulation of maritime GHGs is inevitable, and whether these take the form of a market-based measure or not, credible voluntary market-based action can and should be rewarded,” Palmisano added.