The legality of a future EU Emission Trading Scheme for shipping

Abstract

The European Union is planning to introduce an emission-trading scheme for the shipping industry to reduce the emission of greenhouse gasses. The scheme will be flag blind and will cover all vessels calling at European ports. The legality under international law of such a shipping EU ETS will be assessed. Unilateral greenhouse gas regulations are contested due to cooperation obligations found in the Kyoto Protocol and in the law of the sea. In order for a port state to prescribe and enforce measures, a sufficient jurisdictional basis needs to exist in international law. Territorial en extra-territorial port state jurisdiction are both relevant for assessing the legality of a shipping EU ETS. The following two research questions are answered: 1. Can the European Union unilaterally regulate greenhouse gas emissions from shipping? 2. To what extent is an EU ETS that covers voyages from non-EU vessels that take place beyond EU territory in conformity with international law?