While international transport – aviation and maritime shipping – is an important facilitator and driver of trade, it also contributes significantly to climate change. This paper states that the regulation of greenhouse gas (GHG) emissions from international transport would help mitigate climate change, as well as support a green economy transition. The paper, however, threatens that new regulations could potentially lead to higher costs for moving goods and people around the globe, which has implications for trade and equity; this is important particularly for small island developing states (SIDS).
The document concludes the following:
- A transition to a greener economy will necessitate greater fuel efficiency and the use of alternative fuel sources in the transport sector as part of wider domestic measures.
- Meeting the challenges of climate change mitigation and ensuring that the green economy does not act as a barrier to trade requires a multi-faceted approach to emissions reductions in international transportation.
- Combining the use of policy-driven technological changes, operational measures and the use of market-based mechanisms, such as emissions trading, would be one possibility.
- Working towards a comprehensive international agreement on climate change under the UN convention on climate change (UNFCCC), including international transport, provides the first-best option for moving ahead.
- One way to offset costs for developing countries and to implement the principle of common but differentiated responsibilities would be to install a rebate mechanism; Indeed, under such a mechanism, part of the collected emissions charges would be rebated to developing countries in support of their mitigation and adaptation measures.
This summary is provided by Eldis.