Challenges and Solutions Toward Green Logistics Under EU-Emission Trading Scheme

Abstract

Since climate change has already threatened the whole ecological environment worldwide as well as the living surroundings of human beings, positive actions and regulations from governments are proposed and put into practice before the situation reaches the extreme situation in the near future. Among them, the EU-emission trading scheme (EU ETS) offers probably one of the most cost-efficient solutions for companies to realize greenhouse gas emission reduction. In this context, manufacturers and other companies included in ETS are confronted with the trade-off between carbon abatement cost and carbon allowance purchasing cost. The logistics sector, maintaining close business relationships with almost every industrial sector, is not yet directly included into ETS so far but still faces to the challenge of green reformation required by its customers from the manufacture industry and so on. A new market competition is aroused not only in inclusive manufacture industry but also in the logistics sector. This paper is going to introduce the ETS-impacted logistics sections, to discern both challenges and opportunities for logistics providers, and finally to propose effective measures against the current dilemma.