What it’s in it for the land industry?

Land industry will benefit with cost savings, capacity increase and flexibility in production planning. Stationary sources targeted by IPPC Directive will acquire production flexibility concerning their environmental compliance. Funds that would otherwise have to be invested for in-house abatement can be conserved. Those installations reaching their emissions ceiling can now increase their production capacity by purchasing reduction credits.

Participation of shipping can only benefit stationary sources and discount land costs. Shipping has low on-board abating costs. Participating ships can supply inexpensive reduction credits into the pool to the benefit of all installations. At the same time, land industries can integrate environmentally friendlier transportation into their supply chains.

To satisfy the NEC Directive reductions in tons are to be allocated per installation. A credit-based trading system is a cost-effective solution for the land industry. Participation of shipping will offer a further discount.