The International Maritime Organization (IMO) is considering the implementation of a carbon pricing instrument in international shipping. One of the most contentious points of debate around this issue concerns how to ensure an equitable transition. 

This DCU research project offers in-depth analysis of the advantages and disadvantages of two key potential approaches to address equity considerations in the design of a market-based-measure for international shipping: exemptions, and the strategic use of carbon revenues.

The analysis reveals that an adequate use of carbon revenues is likely to deliver greater climate benefits than exemptions, both within maritime transport and beyond. The analysis also reveals that, while exemptions have some potential merit in addressing equity considerations, they also have various drawbacks.

Overall, this research suggests that carbon revenue use should be the primary approach to addressing equity considerations in the decarbonization of international maritime transport