Value Innovation

Benefits and Costs are directly related to Value Innovation of IMERS. It is perhaps best shown using the framework from the Blue Ocean Strategy.

Charge-and-Cap (IMERS) vs Cap-and-Trade for Shipping

Charge-and-cap (IMERS) vs Cap-and-Trade for Shipping

The novel charge-and-cap scheme employed in IMERS is compared above with a traditional cap-and-trade emission trading scheme for shipping. The major value contributions in IMERS comes from:

  • Eliminating:
    • Baseline Data (need for it)
    • Allocation of emissions
    • Distribution of allowances
  • Reducing:
    • Impact on Competition
    • Cost (including participant's cost and effort)
    • Set up time (down to 2 years)
  • Raising:
    • Effectiveness
    • Flexibility
    • Scale (from Regional to Global)
  • Creating:
    • Technology financing (for near- and long-term improvements)
    • Financial Contributions to Adaptation to Climate Change

Please note that our hybrid scheme is also known under two other names: cap-and-charge, charge-cap-and-trade.