Emissions trading

Ecology

Biology

Environmental economics

Opposition (politics)

Jurisdiction

Economics

Business

Environmental planning

Greenhouse gas

Politics

Political science

Environmental resource management

Environmental science

Carbon market

MEDLINE

Natural resource economics

Scopus

Marine Policy

The aim of this study is to review, identify and synthesise the drivers, challenges and impacts of implementing a Carbon ETS in the shipping sector. PRISMA is adopted to review relevant articles selected from Scopus and Web of Science databases. The review uncovers three categories of drivers, seven categories of challenges, and two categories of impacts. The drivers are (1) limitations of existing technical and operational solutions; (2) promise of market-based solutions; and (3) attitudes of stakeholders. Challenges are about (1) geographical coverage; (2) sectoral coverage; (3) free emissions quota percentage and the carbon trading price; (4) conflict between common but differentiated responsibilities and equal treatment; (5) management difficulties; (6) jurisdiction under international law; and (7) opposition from the shipping sector. Impacts are (1) environmental and economic impacts and (2) optimal abatement strategy. This study offers some implications and recommendations for relevant stakeholders on implementing carbon ETS.

Carbon Emission Trading Scheme in the shipping sector: Drivers, challenges, and impacts