Tax-free IMO plans would struggle with volatile compliance costs
- NZF’s $380 Remedial Unit price sets a natural cap on its Surplus Unit price
- Removing cap on the price of SUs would mean uncapped volatility, Tristan Smith says
- Controlling the market through the IMO would be slow and subject to member state politics
UCL professor Tristan Smith argued that removing the fixed carbon price from a global IMO measure would make zero-emission fuels projects harder to invest in and create greater complexity for a market trying to forecast future fuel costs
