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

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