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“Cost of clean shipping is negligible” says case study

Transport & Environment has assessed “…the likely cost increase in seaborne transport in a hypothetical fully decarbonized scenario”. More specifically, the assessment investigated a substantial strengthening of the FuelEU Maritime (FEUM) and the Marine ETS and looked at the probable cost effect of an increase in the 2030 fuel GHG intensity target of the FEUM from -6% to -14%. In addition, the assessment considered “…mandating an additional 6% sub-quota for renewable fuels of non-biological origin (RFNBOs, or e-fuels) and incorporating well-to-wake (WtW) CO2 equivalent emissions in the maritime ETS, which currently only covers tank-to-wake (TtW) CO2 emissions”. (Essentially, WtW includes all emissions produced during the entire process of fuel production, delivery and operational use, whereas TtW only covers operational use.)

The case study presents a cost calculation, using the shipment of a single standard container (TEU) from China as an example. The calculation suggests that compared with historic prices the increase would be between roughly 1 and 5%. Compared with current (higher) costs for such a shipment, the increase would be under 0.8%. It is demonstrated that the effect on consumer prices is negligible, i.e. counted in euro cents. Examples of price increases on popular consumer goods are given for scenarios in which RFNBO/e-fuels would comply with the most ambitious FEUM and ETS proposals. The examples include a pair of shoes (0.81 euro cents), a TV (10.01 euro cents) and a refrigerator (80.91 euro cents).

Source: T&E, The small price to pay to clean up shipping, 28 June 2022


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