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
- Baseline Data (need for it)
- Reducing:
- Impact on Competition
- Cost (including participant's cost and effort)
- Set up time (down to 2 years)
- Impact on Competition
- Raising:
- Effectiveness
- Flexibility
- Scale (from Regional to Global)
- Effectiveness
- Creating:
- Technology financing (for near- and long-term improvements)
- Financial Contributions to Adaptation to Climate Change
- Technology financing (for near- and long-term improvements)
Please note that our hybrid scheme is also known under two other names: cap-and-charge, charge-cap-and-trade.