- China, as the world’s foremost shipbuilder, plays a pivotal role in facilitating the global shift towards zero-emission vessels (ZEVs).
- There is a consensus that ZEVs need to commence operating on deep-sea routes by 2030 to effectively contribute to keeping global warming well below the critical 2°C threshold.
- This paper seeks to quantify the additional cost of constructing ZEVs compared to conventional ships, addressing a critical knowledge gap in the industry.
- The study evaluates how carbon pricing mechanisms could be utilized to finance ZEV adoption within China’s maritime sector.
China’s Crucial Role In ZEV Transition
China’s pivotal position as the foremost shipbuilder globally holds significant weight in the transition towards zero-emission vessels (ZEVs) worldwide. With the consensus that ZEVs need to commence deep-sea operations by 2030 to effectively contribute to keeping global warming below the critical 2°C threshold, understanding the costs associated with ZEV shipbuilding and implementing supportive policies becomes imperative. This study aims to quantify the extra expenses incurred in constructing ZEVs as opposed to conventional ships, while also assessing the potential of carbon pricing mechanisms to facilitate ZEV adoption within China’s maritime sector.
The analysis shows how revenue from international carbon pricing proposals could cover 20.8% to 73.8% of the additional cost of building ZEVs. The study emphasizes that carbon revenue would peak in the decade from 2030–2040, making this the critical time to jumpstart ZEV shipbuilding.
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Source: theicct
