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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 https://www.transportenvironment.org/discover/the-small-price-to-pay-to-...

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“Cost of clean shipping is negligible” says case study

In this issue

EU must step up energy shift

Editorial: The EU can and must take stronger climate action

Keys to meet the 1.5°C target

European Union prepares for winter

Scientists agree: 100% renewable energy is possible

Corporate leadership? Few businesses pledge to reduce their flying

Denmark aims to build world’s first energy island

Member states are struggling to meet NEC directive

Improve communication on air quality research

Condensable aerosols contribute to inconsistent reporting

Wind technologies for cleaner shipping

Towards a Latin American agenda for a just socio-ecological transition

Ireland intends to cut farm emissions by a quarter by 2030

Navigating nitrogen

How iron and steel emissions can be cut

Particles from electric vehicles

Climate change is everywhere – so is marine litter

Failure or success of air pollution policies in Delhi?

Call for loss and damage and climate finance

Publications

Food for Thought

Northern forests, climate change and the UNFCCC

EU climate targets aligned with the Paris agreement’s 1.5°C objective

Baltic Sea Offshore Wind Collaborative-Learning project

Air pollution in Europe and children’s health

Climate Change: A Himalayan Odessey

No further discussion needed. The agreed global goal is to limit temperature rise to 1.5°C

Fossil-free electricity 2021

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Air pollution

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