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Decarbonizing the international shipping industry: Solutions and policy recommendations
Abstract
Ship-source greenhouse gas (GHG) emissions could increase by up to 250% by 2050 from their 2012 levels, owing to increasing global freight volumes. Binding international legal agreements to regulate GHGs, however, are lacking as technical solutions remain expensive, and crucial industrial support is absent. In 2003, the International Maritime Organization adopted Resolution A.963 (23) to regulate shipping CO 2 emissions via technical, operational, and market-based routes. However, progress has been slow and uncertain; there is no concrete emission reduction target or definitive action plan. Yet, a full-fledged roadmap may not even emerge until 2023. In this policy analysis, we revisit the progress of technical, operational, and market-based routes and the associated controversies. We argue that 1) a performance-based index, though good-intentioned, has loopholes affecting meaningful CO 2 emission reductions driven by technical advancements; 2) using slow steaming to cut energy consumption stands out among all operational solutions thanks to its immediate and obvious results, but with the already slow speed in practice, this single source has limited emission reduction potential; 3) without a technology-savvy shipping industry, a market-based approach is essentially needed to address the environmental impact. To give shipping a 50:50 chance for contributing fairly and proportionately to keep global warming below 2 °C, deep emission reductions should occur soon.
... Vessels are known to release harmful pollutants into the air and ocean, including nitrogen oxides (NO x ), sulfur oxides (SO x ), and particulate matter (PM), posing significant risks to global ecosystems. Between 2007 and 2012, the shipping industry was responsible for 15% of the world's annual NO x emissions, 13% of SO x emissions, and 3% of the total CO 2 emissions, amounting to roughly 940 million tons of CO 2 (Wan et al. 2018). The concern extends beyond these figures, as the rising growth of international shipping activity is directly associated with an increase in global CO 2 emissions in the near future , threatening environmental and human health. ...
... A traditional and well-practiced emissions reduction strategy that shipowners have been utilizing for many years and is subject to analysis in many research papers is slow steaming (Wan et al. 2018;Brynolf et al. 2016;Balcombe et al. 2019;Stathopoulou 2021;Tsaousis 2019). Slow steaming is the process of decreasing the vessel's speed to drastically reduce fuel consumption and minimize the pollution caused by fuel combustion. ...
... According to Notteboom et al. (2021), slow steaming occurs when the commercial speed of ships decreases from 23 to 18 knots (33.3 km/h), while extra slow steaming and super low steaming are also applicable, lessening vessels' speed even more. As noted by Wan et al. (2018), the implementation of slow steaming between 2007 and 2012 decreased CO 2 emissions by approximately 10%, simultaneously aiding shipowners in reducing their operational expenses. Fuel prices also offer a considerable incentive to slow steaming, contributing to up to 50% of overall operating costs, and especially nowadays, the incentive is higher for shipowners since the beginning of the war between Ukraine and Russia, which resulted in the skyrocketing of marine fuel prices (Balcombe et al. 2019). 2 According to the IMO report, slow steaming enabled oil tankers and bulk carriers to lower their fuel use by approximately 30% between 2007 and 2012, while the decrease in container vessels was 20% for the same period. ...
Shipping constitutes an international endeavor that undoubtedly encapsulates one of the most crucial industries of our time. Owing to shipping, societies can enjoy a variety of goods, effectively transported from one place to another throughout the world, heavily contributing to the global economy and competitive advantages, so much so that Smith and Ricardo would be most proud; yet, the surge of interest in cost minimization and the systemic and traditional focus on accounting costs (that societies are less willing to absorb) have allotted an industry, which is imperative due to its globalized nature, but on the other hand, the said nature has caused negative externalities, including extensive environmental pollution and hazards for human and ecosystemic health. As the contemporary paradigm is one of self-regulated industries, which acknowledge that profitability goes hand in hand with sustainability, in recent years, shipping strives to align itself with sustainability initiatives. This paper provides, through a structured literature review and the use of qualitative data analysis software, the current sustainability practices that influence the shipping industry, to provide a topology as to the hurdles and opportunities that sustainability is yet to face.
... In the discourse on maritime decarbonization funding, the literature is concerned with grants and subsidies, loans and loan guarantees, tax incentives, carbon pricing mechanisms, public-private partnerships, emissions trading systems, green bonds, technology funds and prizes, and international aid as key topics. However, it appears that topics such as loans, loan guarantees, technology funds, prizes, and international aid have not been adequately researched, while public-private partnerships (Sari 2023), grants and subsidies (Ghisolfi et al. 2024;Czarnecka et al. 2022;Camargo-Díaz et al. 2022;Chen et al. 2021;Wan et al. 2021), carbon pricing mechanisms (Syriopoulos et al. 2023;Meng et al. 2023;Xue and Lai 2023;Dominioni 2023;Rojon et al. 2021;Mundaca et al. 2021;Bilgili 2021;Dominioni et al. 2018), tax incentives (Tvedt and Wergeland 2023;Lagouvardou and Psaraftis 2022;Camargo-Díaz et al. 2022;Merk 2020;Nikolakaki 2013), emissions trading systems (Sun et al. 2024;Flodén et al. 2024;Cullinane and Yang 2022;Cariou et al. 2021;Lagouvardou and Psaraftis 2022;Wan et al. 2018;Halim et al. 2018;Zhu et al. 2018), and green bonds (Morchio et al. 2024;Rizou 2023;Ozili 2022; Amundsen and Osmundsen 2020) have found limited representation. ...
... A study (Wan et al. 2018) emphasizes the importance of setting carbon reduction targets and highlights the challenges in consensus-building for carbon emissions allocation methods, stressing the need for fair and differentiated approaches. The Dominioni (2023) analysis also underscores the fair equity considerations in designing market-based measures for international shipping, advocating for the strategic use of carbon revenues to achieve greater climate benefits and equitable transition. ...
... EPA (2022a, 2022b),Sun et al. (2024),Flodén et al. (2024),Cullinane and Yang(2022),Cariou et al. (2021) Lagouvardou and Psaraftis (2022),Wan et al. (2018),Halim et al. (2018),Zhu et al. (2018) 7 Implementing enough incentives for attracting operators to nearby non-EU ports I The implementation of an emissions trading system (ETS) in the EU may prompt line operators to relocate transshipment activities to nearby non-EU ports. Concerns about increased operational costs due to emission allowances could drive companies to seek more cost-effective options outside the EU jurisdiction. ...
The decarbonization of the shipping industry is a critical imperative in the global fight against climate change. Non-EU countries, being significant contributors to shipping emissions, play a crucial role in shaping the industry's sustainable future. However, securing funding for shipping decarbonization initiatives in these countries presents challenges, such as limited access to capital, lack of financial initiatives, political and regulatory uncertainties, technological risks, lack of local expertise, and the effects of global economic volatility. Addressing these challenges demands innovative strategies. The paper explores ways of effectively allocating funds for decarbonization projects in the shipping industry of non-EU countries, Türkiye in particular, using a structured decision-making framework tailored to their specific needs and challenges. We adopt the Moment Integrated Solution Method (THEMIS) to identify the “best” option from the range of alternative strategies identified in the framework. Our findings show that the use of incentive mechanisms is the most prioritized funding alternative, followed by the implementation of a sound Cap-and-Trade system and the promotion of strict local regulations to combat emissions. These imply that the prioritization of funding mechanisms, market-driven approaches, and more stringent regulation are key drivers in maritime decarbonization efforts. The Türkiye case study on strategies to achieve a greener maritime industry in developing countries also shows that securing funding for decarbonization requires a concerted effort by governments, private entities, and international organizations.
... Abatement measures can be divided into operational, technical, and fuel substitution measures. For shipping, some CO 2 abatement measures, primarily operational measures, have relatively low or even negative CO 2 abatement costs, including weather routing, propeller polishing, and slow steaming (Eide et al., 2011;Nepomuceno de Oliveira et al., 2022;Wan et al., 2018). With shipping included in the EU ETS, some of those operational measures will likely be implemented. ...
... fixed sails or wings and auxiliary fuel cell engines), the estimated CO 2 reduction cost is €50-100/t. Abatement measures such as waste heat recovery and wind generators come with even higher costs (Eide et al., 2011;Nepomuceno de Oliveira et al., 2022;Wan et al., 2018;Yuan et al., 2016). ...
... The biggest concern among these problems is the pollution of seas and oceans and the damage to the ecosystem caused by greenhouse gases resulting from the use of diesel fuel. Long discussions on whether greenhouse gases caused by engines running on diesel fuel, which are preferred in shipping, are harmful or not have delayed the emergence of international regulation (Zheng, at al., 2018). To illustrate, at the general assembly meeting of the European Still, the result could not reach the desired level (European Parliament, 2015). ...
... Climate Agreement (Zheng, et al., 2018). Although no decision has been taken in the (Ichimura, at al., 2022). ...
Maritime Management is the process of planning, organizing, managing, and controlling business activities in the maritime sector. This activity includes the operating procedures of ships, all kinds of marine vessels, ports, and all other marine facilities. Communication in maritime business is critical for the continuity and security of maritime operations. Using communication systems, maritime companies can communicate between ships, ports, and other maritime facilities. This communication is essential to manage the navigation of ships, coordinate port operations, and ensure maritime safety. Communication and communication networks in the marine sector are advancing rapidly with technological developments. This situation also carries the growth in cyber security in the marine business. Cyber security in maritime trade is critical to protecting the critical infrastructure of the marine industry. It includes the information technology systems and networks of maritime vessels, ports, and other maritime facilities. This study examines the effects of political, technological, and environmental factors on cyber technology innovations and developments in communication & communication networks in maritime activities. MSC, COSCO, and A.P. are examples. In this study, in which MOLLER-MAERSK companies were selected, the Content Analysis Method was used as the research method, and the findings were analyzed qualitatively by applying the PESTEL method. As a result of the research findings, it has been revealed that despite technological developments, the sector may face cyber threats, and investment planning should be continued more effectively. Conducting this study in a narrow context across different sectors or countries in maritime enterprises will strengthen the literature.
... On the other hand, the industry continues to depend on fossil fuels although shipping is regarded as the least energy-intensive method of moving goods (Wan et al., 2018). This efficiency is evident, as transporting 1 tonne of cargo over 1 km using maritime transport emits only 3 g of emissions, whereas road transport and aviation emit 60 g and 560 g, respectively (Brouer et al., 2017). ...
... Over supply of fossil fuels and lack of investment in alternative energy sources Yeremenko, 2022;Wan et al., 2018;Hall, 2010 Seaports' reliance on coal power energy plants as significant contributors to GHG emissions ...
This research has managed to close the gap between factors from the seaports that contribute to climate change. Seaports heavy dependency on fossil fuels and continued contribution of GHG have been significant. Increasing global trade will further enhance the contribution. Aligning with Sustainable development with goal of achieving zero carbon emissions by 2050, it is a must for seaports to look for alternatives to mitigating the factors that have continuously contributed to climate change. This research paper has highlighted a few approaches, such as green technologies, collaboration and others to guide through the transition period.
... The IMO has set short-, medium-, and long-term goals of 20%, 30%, and 50% reductions in ship carbon intensity by 2020, 2025, and 2050, in that order (Deloitte, 2020) [4] . Reports indicate that all supply chain participants must be involved and significant technological advancements and trade-route transformation must take place in order to accomplish these goals (Faber et al., 2020;Gossling & Humpe, 2020;Wan et al., 2018) [7,8,20] . The United Nations Conference on Trade and Development [UNCTAD], 2020 [19] , reports that tanker vessels alone accounted for 30% of the total weight of the 11 billion metric tonnes of international maritime trade in 2018, despite their share of shipping having dropped from 55% in 1980. ...
... The IMO has set short-, medium-, and long-term goals of 20%, 30%, and 50% reductions in ship carbon intensity by 2020, 2025, and 2050, in that order (Deloitte, 2020) [4] . Reports indicate that all supply chain participants must be involved and significant technological advancements and trade-route transformation must take place in order to accomplish these goals (Faber et al., 2020;Gossling & Humpe, 2020;Wan et al., 2018) [7,8,20] . The United Nations Conference on Trade and Development [UNCTAD], 2020 [19] , reports that tanker vessels alone accounted for 30% of the total weight of the 11 billion metric tonnes of international maritime trade in 2018, despite their share of shipping having dropped from 55% in 1980. ...
... Abatement measures can be divided into operational, technical, and fuel substitution measures. For shipping, some CO 2 abatement measures, primarily operational measures, have relatively low or even negative CO 2 abatement costs, including weather routing, propeller polishing, and slow steaming (Eide et al., 2011;Nepomuceno de Oliveira et al., 2022;Wan et al., 2018). With shipping included in the EU ETS, some of those operational measures will likely be implemented. ...
... fixed sails or wings and auxiliary fuel cell engines), the estimated CO 2 reduction cost is €50-100/t. Abatement measures such as waste heat recovery and wind generators come with even higher costs (Eide et al., 2011;Nepomuceno de Oliveira et al., 2022;Wan et al., 2018;Yuan et al., 2016). ...
EU recently decided to include shipping, meaning all intra-European shipping and 50% of extra-European voyages, in the EU Emissions Trading System (ETS) beginning in 2024. This article provides an early assessment of the impacts of the EU ETS on the shipping sector’s potential reductions in greenhouse gas emissions for different types of ships. It further examines selected mitigation measures and the impact on modals split and costs. The study employs a mixed-methods approach combining quantitative estimates (based on data from the EU monitoring, reporting and verification system) with qualitative data and information from interviews with key actors and from previous literature. This approach aims to provide a comprehensive understanding of the impacts of the EU ETS. The inclusion of shipping in the EU ETS is expected to introduce significant incentives to reduce emissions. We estimate that switching to bio-methanol at an emissions allowance price of €90–100/tCO2 will be cost-effective for a minor share of shipping segments (representing about 0.5-5% of all ships), whereas at a price above €150/tCO2 it could be cost-effective for a considerable share (potentially 75%) of ships. In the short term, the costs incurred by the EU ETS will be passed on to transport customers as a surcharge. The increased cost may, unless properly addressed, drive carbon leakage. Meanwhile, a modal shift away from shipping may occur in the roll-on, roll-off (RoRo) and roll-on passenger (RoPax) segments due to direct competition with road and rail transport and the relative ease of shifting to other modes of transport.
... Newly built ships have been obliged to acquire a distinct "Energy Efficiency Design Index" (EEDI) via a technical approach. However, it is difficult to degrade engine power by sacrificing navigational safety and economic feasibility in practice [2]. Moreover, the Ship Energy Efficiency Management Plan (SEEMP) has been implemented at a practical level for liner shipping operators. ...
... To curb sulfur emissions, the IMO has nominated four "Sulphur Emission Control Areas" (ECAs) to enforce limitations on sulfur oxides (SO x ) [4]. Ship operators have to switch to low-sulfur fuel to achieve compliance with these regulations, whereas the low-sulfur fuels (e.g., low-sulfur HFO (LSHFO), marine gas oil (MGO), marine diesel oil (MDO), and liquefied natural gas (LNG)) used inside the ECA have higher prices than the ordinary heavy fuel oil (HFO) utilized outside ECAs [2]. Sometimes, fuel costs from some types of ships have accounted for about 50-60% of the total operating costs [5,6] as the major component in the shipping costs. ...
Emissions of maritime transport have been a critical research topic with the substantial growth in the global shipping industry, encompassing both the expansion of the world fleet and the increased distances it has been covering recently. The International Maritime Organization (IMO) has enforced some regulations to mitigate ship Greenhouse Gas (GHG) emissions, which affect vessels’ operational practice, and further affect service reliability. In this paper, some compliance methods (two-speed strategy, fuel switching, and LNG) against Emission Control Areas (ECAs) at the operational level are examined regarding if and how they impact the liner shipping schedule and service reliability; meanwhile, uncertain weather conditions and port times, as the main uncertain factors, are also involved. Then, a bi-objective fuzzy programming model is formulated and solved by the augmented ε-constraint approach, which generates a set of Pareto solutions by balancing the economic and environmental sustainability. Some findings can be concluded through the experimental results, including that, firstly, to meet uncertain weather conditions at sea requires strong robustness; secondly, ECA regulations can negatively affect the liner shipping service level; moreover, slow steaming is an immediate and effective measure to reduce GHG emissions; and, furthermore, ship routing choice could have a significant influence on ship emissions and service reliability.
... According to the IEA, passenger and freight activity rebounded after the coronavirus (COVID-19) pandemic in 2022, leading to a 3% increase in CO 2 emissions from transportation over the previous year (IEA, 2023). Ocean shipping, heavily dependent on bunker fuels, is projected to see ship-source greenhouse gas emissions increase by up to 250% by 2050 from 2012 levels due to rising global freight volumes (Wan et al., 2018). The energy, industry, and manufacturing sectors did not exhibit any significant effects. ...
In the context of the “dual-carbon” goal and the building of a moderately prosperous society, it is of great significance to explore in depth the impact of livelihood development on urban carbon emissions. This paper uses the Human Development Index (HDI) as a proxy for assessing livelihood development. Based on the data of a panel of 41 cities in the Yangtze River Delta urban agglomeration from 2000 to 2021, this study constructs the fixed effect model, mediating effect and moderating effect models to empirically test the impact of livelihood development on CO2 emissions from energy consumption and its mechanism. The HDI of the Yangtze River Delta urban agglomeration exhibited a steady increase from 0.64 in 2000 to 0.81 in 2021, marking a significant leap from a moderate to a very high level of human development, with an overall increase of 27.41%. The results show that there is a significant inverted U-shaped relationship between livelihood development and urban CO2 emissions. Innovation inputs play an intermediary role and investment intensity positively moderates the inverted U-shaped relationship between livelihood development and CO2 emissions. Moreover, the analysis finds that the impact of livelihood development on CO2 emissions varies significantly among regions with different geographic locations and resource endowments. The inverted U-shaped relationship between livelihood development and CO2 emissions is more pronounced in central cities and non-resource-based cities. The above research results show that urban carbon emissions can be effectively reduced by optimizing livelihood development, and provide a scientific basis for achieving the target of carbon peak. This study reveals the relationship between livelihood development and CO2 emissions, provides a new perspective for sustainable urban development, and provides a basis for promoting the simultaneous realization of livelihood development and carbon emission reduction targets in the Yangtze River Delta urban agglomeration.
... Consequently, there has been a reevaluation of the progress made in technology, operations, and market-based Sustainability 2023, 15, 13907 3 of 25 emission reduction pathways, along with the associated controversies. Various emission reduction measures have been analyzed, leading to the proposal of carbon taxation, known as carbon pricing, to tackle carbon dioxide emissions [24]. Ding et al. [25] assert that a carbon tax represents an effective approach to curbing CO 2 emissions and has emerged as a critical research focus for emission reduction efforts in China. ...
Amid growing global concerns about climate change and its environmental impact, the maritime sector is under increasing pressure to reduce carbon emissions. This study presents a system dynamics model that predicts and simulates vessel carbon emissions, considering different scenarios such as the implementation of carbon levies and the use of alternative marine fuels. The research focuses on the Pacific route, a key international container route, as a practical case study to simulate ship emissions along the Shanghai-Los Angeles container route under various emission reduction measures. Through a comparative analysis of different policy combinations, the findings demonstrate the effectiveness of carbon taxation and the adoption of diverse fuels in reducing carbon dioxide (CO2) emissions from ships. Furthermore, the combination of these policies proves to be more effective in reducing emissions than implementing them individually. These results provide valuable insights for policymakers, industry professionals, and researchers working towards achieving low-carbon transitions in the shipping sector.
... Нормативні документи, розроблені названими організаціями, призвели до активного пошуку можливостей їх імплементації у науководослідній сфері. Серед публікацій останніх років, присвячених поставленим ІМО задачам щодо декарбонізації судноплавства, шляхам їх досягнення та викликам, які постають перед галуззю, можна виділити [12][13][14][15][16]. Серед вітчизняних авторів проблеми декарбонізації морської галузі досліджено та викладено у публікаціях останніх років [17][18][19][20], при цьому окремі автори [наприклад, 19, 20] акцентують увагу на вирішенні проблеми декарбонізації портової діяльності, оскільки на сьогодні саме порти є найбільш розвинутим елементом морської галузі України. ...
... People have proposed many measures to achieve energy conservation and emission reduction [8][9] . Among them, the most representative is the All Electric Ship (AES) [10] . ...
Zero-emission battery-powered ships are considered to be an ideal technical solution for reducing emissions and saving energy in inland shipping. However, due to the range, the limitations of the onboard space, the initial investment and other factors, pure electric boats are not suitable for long-distance inland navigation. Therefore, as a new business mode, the power exchange mode has become one of the hot spots and trends in the development of electric ships, which can improve the charging efficiency of pure battery-powered ships and improve the range of pure battery-powered ships. This paper introduces the typical electric ship in China, and analyzes the advantages, disadvantages, opportunities and threats of the new business mode of electric ship by SWOT analysis. In response to these problems, suggestions are put forward to vigorously promote modular container batteries, modular container operation, establish and improve long-term service system and strengthen talent support, so as to promote the healthy development of new business forms of electric ship power replacement.
... A study by Wan et al., with maximum citations of 128, suggested solutions and policy recommendations for the decarbonization of the international shipping industry. The paper depicted technical, operational, and market-based solutions for reducing GHG emissions from ships [51]. The authors argue that there are loopholes in the performance-based index, necessitating revisiting IMO's GHG reduction target and its legal implications by adopting the advancement in technological solutions. ...
The International Maritime Organization (IMO) is the regulator for the safety and pollution prevention of ships. They have set an ambitious target of driving International Shipping to achieve net-zero greenhouse gas (GHG) emissions in 2050 by the process of decarbonization of shipping. Decarbonization of shipping is integral to sustainability, as it can reduce GHG emissions and provide a clean environment in a world that is conducive to the good health and well-being of our future kith and kin. Decarbonization of shipping may be achieved using alternate low-carbon fuels, a more efficient ship operation to save energy, or redesigning the ship’s hull. The purpose of this article is to conduct a bibliometric analysis of the research papers conducted in the past decade on the initiatives adopted by the shipping industry to work towards the net-zero goal. This study utilizes the Scopus database, renowned for its extensive collection of scientific papers. Moreover, to analyze and visualize the data, the bibliometric software tools VOSviewer 1.6.20, Bibliometrix 4.4.0, and Harzings’ 8.17.4863 have been used. These tools facilitated the assessment of the research output in this bibliometric study. Our findings reveal a steady increase in publications over the years, with a notable rise in research interest from 2015 onward. The most frequently discussed topics include greenhouse gases, emission control, and energy efficiency, with notable contributions from the United Kingdom, China, and Scandinavian countries. The study also highlights the leading journals publishing about this research area. Future research directions include exploring alternative fuels and more inclusive policy frameworks for maritime decarbonization.
... Implementing appropriate technical and operational measures holds promise for significantly reducing air emissions from the shipping industry (Shi, 2016;Wan et al., 2018 In the quest for achieving zero-emission shipping by 2050, predictions indicate that alternative fuels could constitute approximately 64% of the solution, with speed reduction potentially contributing around 8% (IMO, 2018). Nonetheless, the realization of this ambitious goal is beset by numerous challenges, encompassing cost, availability, infrastructure limitations, logistical constraints and technological readiness. ...
... The IMO's ambitious roadmap of emissions reduction, which adopted the initial strategy for reducing GHGs from ships in April 2018, and further amendments in 2023 (IMO 2023a); aims to decrease carbon footprint and GHGs via the Carbon Intensity Index (CII) by 70% and total annual GHG emissions by 50% by 2050, compared to 2008 (Hu, Zhou, and Diao 2019). The Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan (SEEMP) are more effective for new ships while having less effectiveness for existing ships (Wan et al. 2018). Implementing low-carbon fuels such as Liquefied Natural Gas (LNG, predominantly methane), Liquefied Petroleum Gas (LPG, mainly propane and butane), methanol, biodiesel and biogenic alcohols have emerged as the primary options for reducing CO 2 and NO x emissions (Balcombe et al. 2019;Xing et al. 2021). ...
The Blue-Green era paces the ship owners to comply with IMO regulations and aims by 2050 to reduce the ships' emissions by 50%. The internal or post-treatment methods offer a costly CAPEX for existing CI engines. Otherwise, the additives for diesel and biodiesel could provide an affordable pre-treatment solution. The research characterises the optimum water and low-octane naphtha volumetric portions acquired recently. The examined blends are W1N15 consisting of (84%Diesel + 1%Water + 15%Naphtha) and B30W3N15 contains (57.4%Diesel + 24.6%Biodiesel + 3%Water + 15%Naphtha). The homogenous three-phase microemulsions were acquired by ultrasonic blender at 60% amplitude for 15 min. The experiments were applied to a 4-stroke engine (single cylinder) at 2000 rpm, and various loads. The findings reveal that the W1N15 has better combustion properties, a higher pressure of 4% reinforced by water's micro explosion, and higher HR assisted by the igniting tendency of naphtha related to D100. In addition, an average NO x reduction of 46.5% and a CO emission decrease of 18.8%. It provides the same BSFC at 6-9 Nm load related to D100; providing an economic ternary blend that applies the LCT principle for the clean operation of the CI engine. The W1N15 drawback is an increment of the BSFC within 20% for a higher load related to D100. ARTICLE HISTORY KEYWORDS Combustion characteristics; compression ignition engine; exhaust emissions; free surfactants emulsion blends; ternary and binary blend Nomenclature B100 pure biodiesel B30 (70% diesel + 30% biodiesel) B30N15 (59.5% diesel + 25.5% biodiesel + 15% naphtha) B30W3 (67.9% diesel + 29.1% biodiesel + 3% water) B30W3N15 (57.4% diesel + 24.6% biodiesel + 3% water + 15% naphtha)
... Moreover, the industry continues to depend on fossil fuels, although shipping is regarded as the least energy-intensive method of moving goods (Wan et al. 2018). This efficiency is evident, as transporting 1 t of cargo over 1 km using maritime transport emits only 3 g of emissions, whereas road transport and aviation emit 60 and 560 g, respectively (Brouer, Karsten, and Pisinger 2017). ...
Climate change (CC) and seaports share a cyclical relationship,
where climate impacts disrupt seaport operations, while seaport
activities contribute to CC. This research explores the contributing
factors from seaport activities, the impacts of CC on seaports and
strategies for mitigating these factors. A bibliometric analysis was
employed to present the findings statistically and numerically.
The results were summarised into themes, identifying the main
contributing factors, impacts and mitigation strategies. The
analysis reveals that the primary contributor to seaports is the
emission of Greenhouse Gases (GHG) from ships. The most
significant impacts of CC on seaports include increased exposure
to extreme weather events, changes in coastal dynamics, delays
and disruptions in seaport activities and damages to the
infrastructure. Mitigation strategies include adaptation measures,
investment choices and fostering collaboration and partnerships.
Seaport dependency on fossil fuels, coupled with increasing
global trade, exacerbates their contribution to CC. In alignment
with the Sustainable Development Goal of achieving net-zero
carbon emissions by 2050, the findings offer valuable managerial
insights for seaport operators seeking to adopt sustainable
practices.
... The ship scheduling optimization offered the possibility to save fuel, and the relevant authorities have increased their investment in this area. Operational solutions were usually implemented under the SEEMP for ships larger than 400 GT on international voyages [29]. Operational solutions were usually associated with the shipping company's energy management strategy, including slow steaming. ...
The International Maritime Organization (IMO)’s annual operational carbon intensity index (CII) rating requires that from 1 January 2023, all applicable ships meet both technical and operational energy efficiency requirements. In this paper, we conduct a comparative study of different alternative fuel options based on a CII model from the perspective of shipowners. The advantages and disadvantages of alternative fuel options, such as liquefied natural gas (LNG), methanol, ammonia, and hydrogen, are presented. A numerical example using data from three China Ocean Shipping (Group) shipping lines is analyzed. It was found that the overall attained CII of different ship types showed a decreasing trend with the increase of the ship’s deadweight tonnage. A larger ship size choice can obtain better carbon emission reduction for the carbon emission reduction investment program using alternative fuels. The recommended options of using LNG fuel and zero-carbon fuel (ammonia and hydrogen) on Route 1 and Route 3 during the study period were analyzed for the shipowners. Carbon reduction scenarios using low-carbon fuels (LNG and methanol) and zero-carbon fuels (ammonia and hydrogen) on Route 2 are in line with IMO requirements for CII.
... As patchwork approaches, regional actions can sometimes even be superior to long-pending global policies. Many Arctic issues generally have local and regional characteristics; therefore, regional actions should be more heavily emphasized (Wan et al., 2018). By fostering extensive collaborative networks and establishing specialized task forces focused on shipping emission reduction, the Arctic Council can more effectively monitor and orchestrate various initiatives aimed at mitigating Arctic shipping emissions. ...
The effects of global climate change have accelerated the melting of glaciers and the decline of sea ice coverage in the Arctic. In tandem with advancements in icebreaker and other shipping technologies, the navigability of Arctic shipping routes has dramatically improved. Given the geographical advantages of the Arctic region in terms of shipping routes and resource potential, various countries have implemented initiatives to secure a foothold in the Arctic shipping industry. However, the current shipping industry has not yet achieved the ideal state of net-zero emissions, and the rapid increase in Arctic shipping has brought serious and even irreversible negative impacts on the Arctic environment. The study employs document and policy analyses to conduct an in-depth examination of legal and policy documents related to Arctic shipping, especially those from the past 5 years, systematically outlining the relevant legal and policy frameworks, as well as their historical context. At the same time, interdisciplinary research methods are utilized to comprehensively assess the new challenges. It is concluded that against the backdrop of the Arctic region’s unique and fragile environment, the International Maritime Organization (IMO) and the Arctic Council are introducing increasingly stringent regulations for Arctic shipping, posing a complex array of challenges for the industry. Not only must it navigate the mounting pressure of emission reduction policies and intensifying public scrutiny but it must also overcome a multitude of complex technical and operational hurdles. Consequently, the joint efforts of the international community are essential to promote the sustainable development and emission reduction goals of the Arctic shipping industry.
... It is evident that if global trade continues to grow without adequate measures, the situation and some environmental problems are expected to deteriorate further in the coming decades 7,8 . To address the environmental challenges posed by carbon emissions, countries are employing the method of entering into international agreements to restrict the total amount of carbon emissions, known as carbon allocation, in order to achieve global reductions in carbon emissions [9][10][11] . The "carbon allocation" can be interpreted as specific emission targets agreed upon between industrialized nations and transitioning economies. ...
In order to achieve sustainable development of the socio-ecological system, allocating carbon quotas has become one of the key approaches to achieving carbon emission reduction goals. As one of the primary modes of transportation, waterborne shipping is increasingly drawing attention from the international community due to its carbon emissions. Many countries have gradually established comprehensive frameworks for carbon emission management and carbon markets. However, their carbon quota allocation systems remain imperfect. Quantitative research findings indicate the necessity of evaluating carbon quota allocation from both regional and sectoral perspectives to ensure sustainability and profitability in waterborne transportation while significantly reducing carbon emissions. Clear legal regulations are needed to define the quantity of carbon quotas. This study suggests that a hybrid allocation method should be adopted to impose quota restrictions on carbon emissions in waterborne transportation processes. Furthermore, it is imperative to emphasize the hybrid approach as the primary means of balancing between free allocation and auctioning, thereby establishing a fair quota allocation system.
... Operational measures involve changing the operational strategy of the ships (Fan et al., 2022a), and mostly contain speed reduction, route planning, fleet deployment, and energy efficiency management (Farkas et al., 2021). The most significant and promising measure is speed reduction, also known as slow steaming (Wan et al., 2018;Wu et al., 2022a;Dettner and Hilpert, 2023). They do not require any modification of the ships , and can substantially reduce fuel consumption and CO 2 emissions (Fan et al., 2022a). ...
Excessive CO2 emissions and increased total costs of liner shipping are the two main problems affecting the environmental and economic benefits of liner companies under the European Union Emission Trading System (EU ETS). To address the upcoming EU ETS, we propose a carbon and cost accounting model for liner shipping that accurately calculates CO2 emissions and total cost of liner shipping. We conduct a case study that a containership operates on the liner route from the Far East to Northwest Europe. The results show that the sailing stage plays a pivotal role in CO2 emissions from liner shipping, accounting for 94.70% of CO2 emissions. Among four types of fuel, CO2 emissions from liner shipping using MGO is the largest, while CO2 emissions from liner shipping using methanol is the smallest. Methanol, as an alternative fuel, proves to be a better choice than LNG for CO2 control of liner shipping. The relationship between sailing speed and CO2 emissions follows a U-shaped curve for the selected containership. Notably, speed reduction is effective in carbon control of liner shipping only when the sailing speed exceeds 8.29 knots. Under the EU ETS, sailing speed is a key variable affecting the total cost of liner shipping. Speed reduction may not always be cost-effective. When keeping the total cost of liner shipping unchanged, sailing speed should be reduced as the EU allowance (EUA) price rises within a certain range. For the selected containership using MGO and HFO, the most economical sailing speed is 8.29 knots, corresponding to the increase in EUA price of 304.95% and 261.21%, respectively. If EUA price continues to rise, speed reduction will become ineffective in controlling the total cost of liner shipping. This model can enhance the environmental and economic benefits of liner companies, meet compliance requirements of the EU ETS, and provide a new perspective for carbon and cost control of liner shipping.
... Although earlier research focused on measuring and quantifying shipping emissions to draw attention to the industry's carbon pollution problem (Cadarso et al., 2010;Eyring et al., 2010;Heitmann & Peterson, 2014), more recent studies have investigated a broad range of issues including specific emission reduction policies, strategies, and technologies, as well as climate adaptation challenges (Alzahrani et al., 2021;Halim et al., 2018;Izaguirre et al., 2021;Lagouvardou et al., 2020;Wan et al., 2018) and governance efforts, institutions, and arrangements aimed reducing shipping emissions (Dong et al., 2022;Gritsenko, 2017;Prehn, 2021). ...
The literature on climate change in the maritime transport industry has grown rapidly in the last few years. Yet as the research agenda has progressed, scientific debates have become more isolated and fragmented, making it difficult to translate new findings into broader policy debates. This article draws on problematization methodology to help organize the scientific debate on maritime emissions and to identify analytical gaps and challenges. We argue that scholars investigate shipping's emission problem from four distinct analytical perspectives— (1) international laws and regulations, (2) markets and economics, (3) engineering and technology, and (4) authority and legitimacy. Each of these perspectives problematizes maritime emissions in specific ways, leading to different policies and strategies to address the problem. We call for better integrating these four literatures and highlight three crosscutting areas and problems for future research. First, developing institutions that facilitate market and engineering solutions; second, integrating climate mitigation and adaptation research; and third, focusing on justice concerns to ensure an equitable green transition in the maritime industry.
This article is categorized under: Climate, History, Society, Culture > Thought Leaders
Policy and Governance > International Policy Framework
Policy and Governance > Private Governance of Climate Change
... Shipping industry significantly contributes to the greenhouse effect by emitting large quantities of carbon dioxide, nitrogen oxides and sulfur oxides (Aakko-Saksa et al., 2023). Ships, which heavily rely on fossil fuels such as heavy oil and diesel, emit these harmful gases into the air, contributing to global warming and negatively affecting air quality (Wan et al., 2018). To address these environmental issues, immediate actions are necessary and one of them is the optimal frequency for dry docking. ...
This study aims to develop a methodology to assess hull fouling based on ship propulsion data such as speed, draft and weather related data. Hull fouling is an unavoidable phenomenon in ships and results in higher fuel consumption and the maintenance frequency has be the optimal one. Despite the fact that until now this task has primarily relied on empirical rules, it turns out that it can be improved by employing machine learning techniques. Using data from clean-hull ships, we aim to isolate and consider only the weather in this study. Our goal is to replace empirical rules with machine learning, as the vast amount of data we possess can significantly aid us in this endeavor. It ends up to be a regression problem, and therefore, we experiment with several supervised algorithms using k-fold cross validation to finally select models based on ensemble methods or artificial neural networks. We propose the potential use of MLP Regressor, Random Forest Regressor and XGB Regressor since all of them yielded very good results in terms of some performance metrics. The timely detection of hull fouling can provide substantial benefits in terms of resource management and environmental sustainability.
... In response to the increasingly stringent greenhouse gas emission reduction targets, the industry is actively developing and applying emission reduction measures, including technical energy efficiency measures, operational energy efficiency measures, and lowcarbon/zero-carbon alternative fuels [2]. In policy formulation and investment decisions concerning greenhouse gas reduction measures, the emissions reduction potential and the implementation cost are two crucial considerations [3]. The industry seeks to prioritize measures with high emissions reduction potential and low cost implications, but in practice, these two factors are often challenging to balance. ...
Within the context of global initiatives to address climate change, the shipping industry is facing increasingly intensified pressure to decarbonize. The industry is engaging in the exploration and implementation of greenhouse gas (GHG) emission reduction measures, including energy efficiency technologies and alternative fuels, with the objective of accelerating the progression towards greenhouse gas mitigation. The application of various GHG emission reduction measures usually requires different levels of investment costs, and economic feasibility is a key factor influencing policy formulation and investment decisions. In this regard, this paper developed a cost-effective model for energy efficiency measures and alternative fuels based on the marginal abatement cost (MAC) methodology. This model can distinguish the differences between energy efficiency measures and alternative fuels in terms of Tank-to-Wake emissions and Well-to-Wake emissions in the GHG emission evaluation system. By taking typical ship types with significant emission contributions as study cases, i.e., bulk carriers (61–63K DWT), container ships (8000 TEU), product tankers (115K DWT), crude oil tankers (315–320K DWT), and Ro-Ro passenger ferries (3500 DWT), the GHG abatement cost-effective performance of major categories of measures such as operational measures, technical measures, renewable energy sources, and alternative fuels were calculated. According to the MAC results, the marginal abatement cost curves were plotted based on the ranking of energy efficiency measures and alternative fuels, respectively. The impacts of bunker fuel prices and carbon market prices on the cost-effectiveness were analyzed. The research results provided the GHG abatement potential of the integrated application of cost-effective energy efficiency measures, the cost-effectiveness ranking of alternative fuels, and the carbon emission price expected to bridge the price gap between alternative fuels and conventional bunker fuel. The presented methodology and conclusions can be used to assist shipping companies in selecting emission reduction measures, and to support maritime authorities in developing market-based measures.
... IMO adopted the Initial Strategy for Reducing Greenhouse Gas Emissions from Ships In 2018, followed by a set of guidelines in 2022 to facilitate the implementation of the short-term measure of GHG reduction for ships. Over the past decade, the IMO has taken further action, including further regulatory measures and the revised IMO Greenhouse Gas Strategy to be adopted in 2023 [6]. To support the implementation of these programs, IMO has been implementing a comprehensive program of capacity building and technical assistance, including a series of global projects [7]. ...
In the context of ecological protection and strict emissions control, the replacement of traditional energy sources with clean energy has become a new direction for the development of the shipping industry. Bio-oil is beneficial to reduce greenhouse gas (GHG) emissions and air pollutants. In this study, life cycle assessment (LCA) and life cycle cost assessment (LCCA) are conducted to evaluate the environmental and economic impacts of diesel and bio-oil as fuel for container ships in the Yangtze River mainline. The results show that compared with diesel, the total greenhouse gas emission is 34.58% lower than diesel, and the total cost is 8.22% higher than that of diesel throughout the whole life cycle of these two fuels. Both LCA results and LCCA results show that bio-oil is an ideal clean energy source. In addition, the abundant raw material resources of bio-oil make it a reliable alternative, which is also of great significance.
... According to the studies about decarbonisation in shipping, Wan et al. (2018) discussed the technical and operational precautions in order to decrease emissions sourced by maritime transportation and they stated that in spite of transporting the goods the most efficiently in terms of energy, the shipping industry is not adaptive to decarbonize economic growth. Therefore, a target should be defined to achieve the desired emission reduction levels. ...
Climate change and global warming are among the most severe threats to the global ecosystem, caused by greenhouse gas emissions. Therefore, all industries that cause environmental emissions should collaborate in the struggle against climate change. In this context, the International Maritime Organization (IMO) approved the initial greenhouse gas strategy at the MEPC 72 session in April 2018 to achieve targets for 2050. With this strategy, the IMO aims to create and improve new regulations that can enhance energy efficiency to achieve their short-term, midterm, and long-term goals. In this study, one of the novel terms, energy efficiency existing ship index (EEXI) values, has been calculated for the Turkish fleet to guide the maritime sector. The Turkish fleet in the study refers to the Turkish-owned vessels both sailing with a national or international flag. In accordance with this regulation, the number of Turkish fleets that were identified as either above or below the IMO reference lines has been determined. Additionally, EEXI values have been recalculated using the engine power limitation (EPL) method for ships that exceed the required limits, and the success rate of this method has been estimated. As a result, the application of EPL increased the number of ships below the Phase 2 reference line from 15.6 % to 53.1 %. To the best of our knowledge, this research, which has been carried out on all Turkish-owned ships, is the first study intended to serve as a guide for other ship owners in the global maritime industry regarding energy efficiency management.
... Studies have shown that slowing down vessel speeds can effectively reduce immediate CO 2 emissions (Cariou, 2011). Various alternative energy solutions-encompassing fuel cells, waste heat recovery, solar and wind energy utilization, shore electrification, and cleaner fuels-demonstrate theoretical promise (Wan et al., 2018). ...
The escalating greenhouse gas (GHG) emissions from maritime trade present a serious environmental and biological threat. With increasing emission reduction initiatives, such as the European Union’s incorporation of the maritime sector into the emissions trading system, both challenges and opportunities emerge for maritime transport and associated industries. To address these concerns, this study presents a model specifically designed for estimating and projecting the spatiotemporal GHG emission inventory of ships, particularly when dealing with incomplete automatic identification system datasets. In the computational aspect of the model, various data processing techniques are employed to rectify inaccuracies arising from incomplete or erroneous AIS data, including big data cleaning, ship trajectory aggregation, multi-source spatiotemporal data fusion and missing data complementation. Utilizing a bottom-up ship dynamic approach, the model generates a high-resolution GHG emission inventory. This inventory contains key attributes such as the types of ships emitting GHGs, the locations of these emissions, the time periods during which emissions occur, and emissions. For predictive analytics, the model utilizes temporal fusion transformers equipped with the attention mechanism to accurately forecast the critical emission parameters, including emission locations, time frames, and quantities. Focusing on the sea area around Tianjin port—a region characterized by high shipping activity—this study achieves fine-grained emission source tracking via detailed emission inventory calculations. Moreover, the prediction model achieves a promising loss function of approximately 0.15 under the optimal parameter configuration, obtaining a better result than recurrent neural network (RNN) and long short-term memory network (LSTM) in the comparative experiments. The proposed method allows for a comprehensive understanding of emission patterns across diverse vessel types under various operational conditions. Coupled with the prediction results, the study offers valuable theoretical and data-driven support for formulating emission reduction strategies and optimizing resource allocation, thereby contributing to sustainable maritime transformation.
The Paris Agreement’s pressing global mandate to limit global warming to 1.5 degrees Celsius above pre-industrial levels by 2030 has placed immense pressure on energy-consuming industries and businesses to deploy robust, advanced, and accurate monitoring and tracking of carbon footprints. This critical issue is examined through a systematic review of English-language studies (2015–2024) retrieved from three leading databases: Scopus (n = 1528), Web of Science (n = 1152), and GreenFILE (n = 271). The selected literature collectively highlights key carbon footprint tracking methods. The resulting dataset is subjected to bibliometric and scientometric analysis after refinement through deduplication and screening, based on the PRISMA framework. Methodologically, the analysis integrated the following: (1) evaluating long-term trends via the Mann–Kendall and Hurst exponent tests; (2) exploring keywords and country-based contributions using VOSviewer (v1.6.20); (3) applying Bradford’s law of scattering and Leimkuhler’s model; and (4) investigating authorship patterns and networks through Biblioshiny (v4.3.0). Further, based on eligibility criteria, 35 papers were comprehensively reviewed to investigate the emerging carbon footprint tracking technologies such as life cycle assessment (LCA), machine learning (ML), artificial intelligence (AI), blockchain, and data analytics. This study identified three main challenges: (a) lack of industry-wide standards and approaches; (b) real-time tracking of dynamic emissions using LCA; and (c) need for robust frameworks for interoperability of these technologies. Overall, our systematic review identifies the current state and trends of technologies and tools used in carbon emissions tracking in cross-sectors such as industries, buildings, construction, and transportation and provides valuable insights for industry practitioners, researchers, and policymakers to develop uniform, integrated, scalable, and compliant carbon tracking systems and support the global shift to a low-carbon and sustainable economy.
Background: The transition to low-carbon economies has become a global priority, particularly in sectors with high greenhouse gas emissions, such as maritime transport. Renewable fuels, especially methanol, have emerged as promising alternatives to conventional fossil fuels due to their potential to reduce carbon footprints and contribute to sustainable logistics systems. Methods: This study employs a combined qualitative and quantitative approach to assess the impact of renewable fuel production on maritime transport decarbonization. The analysis integrates economic feasibility, energy efficiency, and environmental benefits, providing a comprehensive evaluation of methanol’s role in reducing emissions. Results: Findings indicate that methanol offers significant potential for the decarbonization of maritime transport. Its relatively low production costs and high energy density position it as a viable alternative to traditional fuels. Additionally, the study highlights the substantial reduction in greenhouse gas emissions that methanol adoption could achieve, reinforcing its role in mitigating climate change effects. Conclusions: The study concludes that integrating methanol as a primary fuel in maritime transport can accelerate the sector’s decarbonization. However, successful implementation depends on supportive policy regulations and further research to optimize production and supply chain integration. The findings emphasize the strategic importance of renewable fuels in developing sustainable and resilient logistics systems.
Purpose – Global maritime trade has grown significantly, accompanied by a notable rise in greenhouse gas emissions—from 9.77 billion tonnes in 2012 to 10.76 billion tonnes in 2018, marking a 9.6% increase, as highlighted by the International Maritime Organization’s Fourth IMO GHG Study (2020). To counteract this trend, the IMO introduced the 2023 IMO GHG Strategy, which sets ambitious targets: reducing shipping carbon emissions by 20–30% by 2030 (with 5–10% reliance on near-zero-emission technologies), achieving a 70–80% reduction by 2040, and reaching net-zero emissions by 2050. Design/Methodology/Approach – This study examines empirical decarbonization strategies developed by liner shipping companies and policymakers. Drawing on comprehensive literature and incorporating expert insights from both academia and industry, the research utilizes a combination of Multi-Criteria Decision Making (MCDM) and multi-layer Quality Function Deployment (QFD). This integrated approach transforms decarbonization demands into targeted improvements in existing technological requirements. Findings – The results reveal that the most critical technological requirements for effective decarbonization are: 1. Developing more efficient, low‑carbon engines and propulsion systems; 2. Implementing alternative fuel propulsion technologies; and 3. Adopting renewable energy power solutions. These prioritized strategies provide actionable guidance to enhance the overall effectiveness of decarbonization initiatives in the maritime industry. Originality/Value – By merging quantitative analytical methods with expert opinions, this study presents a novel framework for improving decarbonization strategies in the maritime sector. The strategic recommendations are designed to refine current practices and support the transition to a more sustainable shipping industry.
This research investigates the Saudi marine sector’s response to climate change. In particular, it assesses industry stakeholder awareness, attitudes, and actions concerning climate-related challenges. A complete survey was distributed to a varied range of industry participants, including executives, managers, seafarers, and academics, to assess their understanding and involvement. The research indicates moderate levels of awareness and engagement, and significant challenges, including financial limitations, a lack of experience and knowledge, and insufficient regulatory support, to implementing more sustainable practices. The study also mentions ongoing attempts to satisfy International Maritime Organization (IMO) requirements, while present mitigating techniques have limited efficacy. Compared to other regions, Saudi Arabia mostly depends on fossil fuels, which poses specific difficulties in the transformation of sustainable maritime practices. The study identifies current strategies and proposes prospects such as raising financial assistance, and the adoption of innovative technologies. These findings are critical to providing the link between the Saudi marine sector and the climate targets, as well as the Saudi Vision 2030.
El transporte marítimo es la vía principal para el comercio global, pero genera un 3% de las emisiones mundiales de dióxido de carbono, estableciendo la necesidad de disminuir esta cifra para cumplir con los objetivos de sostenibilidad ambiental y combatir el cambio climático. El estudio busca analizar las estrategias para la descarbonización del transporte marítimo y su impacto en la sostenibilidad ambiental, los costos operativos y el cumplimiento de las regulaciones internacionales. Se utilizó un enfoque cualitativo, descriptivo y transversal, aplicando la técnica de saturación de información para extraer 32 referencias. Las estrategias se centraron en mejorar la eficiencia energética, el uso de combustibles alternativos y la implementación de tecnologías de reducción de emisiones, destacando el diseño de buques, los sistemas de propulsión, y la mejora de rutas y planificación de la navegación. Del estudio se desprende que se necesitan altos niveles de inversión para el desarrollo y adopción de tecnologías libres de carbono. Las regulaciones internacionales, aunque necesarias, deben ser equilibradas para no afectar negativamente la competitividad del sector, ya que la descarbonización total requiere de un esfuerzo global, innovación continua y políticas públicas que mejoren la transición hacia la navegación marítima sostenible.
Over the past few decades, the maritime sector has faced a notable hurdle in fulfilling the imperative to decrease greenhouse gas (GHG) emissions resulting from its operations. The "2023 IMO Strategy for the Reduction of GHG Emissions from Ships" underscores the urgent necessity to proactively address this issue to reach net-zero GHG emissions by or around/close to 2050. To achieve these targets, it is crucial to replace fossil fuels with alternative fuels and energy sources. Hydrogen and ammonia are regarded as some of the alternative fuels having the greatest long-term potential for achieving decarbonization in maritime transport. Nevertheless, their employment presents challenges due to the substantial capital investments needed for new engines, fuel systems, port infrastructure, and the elevated operational costs stemming from their higher prices compared to conventional fuels. This research delves into the expenses and advantages associated with the adoption of hydrogen and
ammonia as marine fuels, considering various production methods. Initiating the evaluation of the cost dynamics
of these fuels, our analysis aligns with established research, confirming that green hydrogen emerges as notably the most expensive marine fuel option, followed by green ammonia, blue hydrogen, and blue ammonia. It is crucial to acknowledge, however, that the emissions costs linked with green hydrogen, closely followed by green ammonia, are minimal when compared to conventional fuels, including their blue counterparts. The considerable overall costs associated with the adoption of green fuels underline the imperative need for implementing Market-
Based Measures (MBMs).
While the global public is struggling with Covid-19 and the subsequent inflation, war and energy crisis, climate change has turned into a forgotten crisis. However, with the increasing number of disasters caused by extreme weather events in different continents of the world, climate change has started to attract attention all over the world. Extreme weather events such as global warming, floods and hurricanes, which are the result of global climate change, not only affect the lives of societies, but also affect supply chains. The first spots to see the effects of extreme weather conditions as a result of climate change are the production centers in different parts of the world and the international transportation sector, which ensures that the goods produced in these facilities reach the markets. By this study, the qualitative effects of climate change on supply chains were investigated and this research is expected to shed light on the effects of climate in international logistics activities.
This paper presents innovative maritime shipping initiatives to reduce carbon footprint and gases emission.
The objectives of this study are to explore the fluctuation of oil prices impact on manufacturing sector of Pakistan. To check the asymmetric effects of real effective exchange rate on manufacturing sector of Pakistan. We Examined the role of gross capital formation as well as labor force in manufacturing sector of Pakistan and also discussed the globalization relationship with manufacturing sector of Pakistan. This enabled us to recommend the helpful policy to enhance capacity of manufacturing sector of Pakistan. Data is taken from World Development Indicator (WDI) time gap takes from 1995 to 2017 and analyzed through ARDL approach. The results indicated that Impact of manufacturing is negative effect on gross capital formation and positive impact with other variables.
This article shows the effect of the addition of effective microorganisms and silver on the exhaust gas composition and fuel consumption. Exhaust emission standards are becoming increasingly stringent, which makes it difficult for engine manufacturers to meet them. For this reason, intensive work is underway to use alternative propulsion systems on ships, and for diesel engines, alternative fuels. Among other things, this applies to mixtures of petroleum-based fuels with vegetable oils and their esters. Unfortunately, their use, due to their physicochemical properties, can negatively affect the performance of the engine and the wear of its components. Therefore, the aim of this study was to see how additives of effective microorganisms in the form of ceramic liquid and tubes, and a silver solution and colloidal silver would affect some engine parameters, including the exhaust gas composition and fuel consumption. The authors are not aware of the results of previous research on this issue. The tests were carried out on a diesel engine for four types of green additives at concentrations of 2% and 5%, at different ranges of its load. The additives added to the diesel fuel were characterised, and the test stand was presented, along with the parameters of the tested fuel. The effect of additives on selected engine parameters, including fuel consumption, was presented. The characteristics of hourly fuel consumption and selected components of the exhaust gas, including nitrogen oxides, carbon monoxide and carbon dioxide as a function of the concentration of ecological additives are shown and analysed. It was found that the most beneficial additive that had a positive effect on the exhaust gas composition and fuel consumption was a silver solution in a 2% concentration. There was a decrease of up to 4% in the NOx content of the exhaust gas, a decrease in carbon monoxide of more than 28%, a decrease in carbon dioxide of 4.6% and a decrease in fuel consumption of around 3% was achieved under the tested conditions. The use of these additives is an innovative solution that has a positive impact on reducing the emissions of harmful compounds into the atmosphere. In further research, it will be necessary to study the effect of this additive on the combustion process in the engine and the wear of its components, as well as to confirm the results obtained in real operating conditions.
Greenhouse gas emissions lead to climate change, subjecting the maritime environment to severe threats. In response, globally, states and organizations are taking actions to decarbonize. In this context, this paper builds an evolutionary game analysis involving the government and shipping company under a governance framework with IMO, from a perspective of economic regulations, and explores how to establish a proper shipping decarbonization mechanism and implementation plans in the process of dynamic evolution. Based on a system dynamics simulation model, we analyzed how the cap-and-trade policy system, tax-and-subsidy policy system, and cooperative policy system perform in terms of shipping decarbonization and the role of IMO in shipping decarbonization. Our research proves that the cooperative system is more efficient and stable in decarbonization than singular economic regulations; static and dynamic implementation plans should be coordinated in different stages; and finally, IMO plays an active role in multi-agent coordinated controls.
CO2 emissions from maritime transport represent around 3% of total annual anthropogenic greenhouse gas (GHG) emissions. These emissions are assumed to increase by 150–250% in 2050 in business-as-usual scenarios with a tripling of world trade, while achieving a 1.5–2°C climate target requires net zero GHG emissions across all economic sectors. Consequentially, the maritime sector is facing the challenge to significantly reduce its GHG emissions as contribution to the international ambition to limit the effects of climate change.
The Copenhagen Accord (and Cancun Agreement) commits the international community to “hold the increase in global temperature below 2°C, and take action to meet this objective consistent with science and on the basis of equity.” This article explores the implications of these commitments for the shipping sector. It outlines how the science of climate change places stringent constraints on the sector’s emissions at the global level while the equity dimension tightens still further the industry’s emissions space for the Annex 1 nations. The mitigation potential of proposed global-scale measures are detailed and the apportionment of emissions between non-Annex 1 and Annex 1 discussed. Building on the scientific framing of cumulative emissions, the article concludes that nothing short of an immediate ‘Scharnow turn’ is necessary if the industry is not to capsize wider efforts to “hold the increase in global temperature below 2°C”.
The environment issue is one of the significant challenges that the liner shipping industry has to face. The International Maritime Organization (IMO) has set a goal to reduce greenhouse gas (GHG) emissions from existing vessels by 20–50% by 2050 and develop the Energy Efficiency Operational Indicator (EEOI) as a measure for energy efficiency. To achieve this goal, IMO has suggested three basic approaches: the enlargement of vessel size, the reduction of voyage speed, and the application of new technologies. In recent times, liners have adopted slow steaming and decelerated the voyage speed to 15–18 knots on major routes. This is because slow steaming is helpful in reducing operating costs and GHG emissions. However, it also creates negative effects that influence the operating costs and the amount of GHG emissions at the same time.This study started with the basic question: Is it true that as voyage speed reduces, the operating costs and CO2 emissions can be reduced at the same time? If this is true, liners will definitely decelerate their voyage speed themselves as much as possible so that they can increase their profits and improve the level of environmental performance. However, if this is not true, then liners will concentrate just on increasing their profits by not considering environmental factors. This led the authors to set out three objectives: (1) to analyze the relationship between voyage speed and the amount of CO2 emissions and to estimate the changes by slow steaming in liner shipping; (2) to analyze the relationship between voyage speed and the operating costs on a loop; and (3) to find the optimal voyage speed as a solution to maximize the reduction of CO2 emissions at the lowest operating cost, thus satisfying the reduction target of IMO.
Slow steaming strategies have been implemented by most shipping lines and significantly reduce CO2 emissions from international shipping. This article measures the rate at which CO2 emissions have been reduced for various container trades and estimates the bunker break-even price at which this strategy is sustainable in the long run. It is found that shows such reductions can only be sustained given a bunker price of at least 350–400 for the main container trades.
International shipping is a significant contributor to Global Greenhouse Gas (GHG) emissions, responsible for approximately 3% of global CO2 emissions. The International Maritime Organization is currently working to establish GHG regulations for international shipping and a cost effectiveness approach has been suggested to determine the required emission reductions from shipping. To achieve emission reductions in a cost effective manner, this study has assessed the cost and reduction potential for present and future abatement measures based on new and unpublished data. The model used captures the world fleet up to 2030, and the analysis includes 25 separate measures. A new integrated modelling approach has been used combining fleet projections with activity-based CO2 emission modelling and projected development of measures for CO2 emission reduction. The world fleet projections up to 2030 are constructed using a fleet growth model that takes into account assumed ship type specific scrapping and new building rates. A baseline trajectory for CO2 emission is then established. The reduction potential from the baseline trajectory and the associated marginal cost levels are calculated for 25 different emission reduction measures. The results are given as marginal abatement cost curves, and as future cost scenarios for reduction of world fleet CO2 emissions. The results show that a scenario in which CO2 emissions are reduced by 33% from baseline in 2030 is achievable at a marginal cost of USD 0 per tonne reduced. At this cost level, emission in 2010 can be reduced by 19% and by 24% in 2020. A scenario with 49% reduction from baseline in 2030 can be achieved at a marginal cost of USD 100 per tonne (27% in 2010 and 35% in 2020). Furthermore, it is evident that further increasing the cost level beyond USD 100 per tonne yield very little in terms of further emission reduction. The results also indicate that stabilising fleet emissions at current levels is obtainable at moderate costs, compensating for fleet growth up to 2030. However, significant reductions beyond current levels seem difficult to achieve. Marginal abatement costs for the major ship types are also calculated, and the results are shown to be relatively homogenous for all major ship types. The presented data and methodology could be very useful for assisting the industry and policymakers in selecting cost effective solutions for reducing GHG emissions from the world fleet.
Uncertainty is an obstacle for commitments under cap and trade schemes for emission permits. We assess how well intensity targets, where each country's permit allocation is indexed to its future realised GDP, can cope with uncertainties in international greenhouse emissions trading. We present some empirical foundations for intensity targets and derive a simple rule for the optimal degree of indexation to GDP. Using an 18-region simulation model of a cooperative, global cap-and-trade treaty in 2020 under multiple uncertainties and endogenous commitments, we show that optimal intensity targets could reduce the cost of uncertainty and achieve significant increases in global abatement. The optimal degree of indexation to GDP would vary greatly between countries, including superindexation in some advanced countries, and partial indexation for most developing countries. Standard intensity targets (with one-to-one indexation) would also improve the overall outcome, but to a lesser degree and not in all individual cases. Although target indexation is no magic wand for a future global climate treaty, gains from reduced cost uncertainty and the potential for more stringent environmental commitments could justify the increased complexity and other potential downsides of intensity targets.
This paper examines the response of vehicle purchase behavior to China’s largest national subsidy program for fuel-efficient vehicles during 2010 and 2011. Using variation from the program’s eligibility cutoffs and the rollout of the subsidy program, the program is found to boost sales for subsidized vehicle models, but also to create a substitution effect within highly fuel-efficient vehicles. Estimates imply that ignoring the substitution effect would lead one to conclude that the program is welfare enhancing, whereas in fact the marginal cost of the program exceeds the marginal benefit by as much as 300 percent. (JEL D12, H25, L25, L62, O14, P23, P36)
Manufacturing has evolved and become more automated, computerised and complex. In this paper, the origin, current status and the future developments in manufacturing are disused. Smart manufacturing is an emerging form of production integrating manufacturing assets of today and tomorrow with sensors, computing platforms, communication technology, control, simulation, data intensive modelling and predictive engineering. It utilises the concepts of cyber-physical systems spearheaded by the internet of things, cloud computing, service-oriented computing, artificial intelligence and data science. Once implemented, these concepts and technologies would make smart manufacturing the hallmark of the next industrial revolution. The essence of smart manufacturing is captured in six pillars, manufacturing technology and processes, materials, data, predictive engineering, sustainability and resource sharing and networking. Material handling and supply chains have been an integral part of manufacturing. The anticipated developments in material handling and transportation and their integration with manufacturing driven by sustainability, shared services and service quality and are outlined. The future trends in smart manufacturing are captured in ten conjectures ranging from manufacturing digitisation and material-product-process phenomenon to enterprise dichotomy and standardisation.
The ballast water that stabilizes marine vessels is the greatest source of harmful bacteria and invasive species in aquatic ecosystems. But global action has been slow. We argue that it must take a close look at the ballast-water convention, whose inadequacies highlight fundamental problems with international maritime governance. The lessons learned might steer other global environmental policies, from reductions in greenhouse-gas emissions to mitigating acoustic and light pollution. Going forward, the IMO should develop strategies to ensure that nations enter into its conventions promptly and to coordinate regional actions. It should establish market instruments to provide incentives and reform how maritime data are collected and used.
The shipping industry is today increasingly concerned with challenges related with sustainability. CO emissions from shipping, although they today contribute to less than 3% of the total anthropogenic emissions, are expected to rise in the future as a consequence of increased cargo volumes. On the other hand, for the 2 C climate goal to be achieved, emissions from shipping will be required to be reduced by as much as 80% by 2050. The power required to propel the ship through the water depends, among other parameters, on the trim of the vessel, i.e. on the difference between the ship’s draft in the fore and the aft of the ship. The optimisation of the trim can, therefore, lead to a reduction of the ship’s fuel consumption. Today, however, the trim is generally set to a fixed value depending on whether the ship is sailed in loaded or ballast conditions, based on results performed on model tests in basins. Nevertheless, the on-board monitoring systems, which produce a huge amount of historical data about the life of the vessels, lead to the application of state of the art data analytics techniques. The latter can be used to reduce the vessel consumption by means of optimising the vessel operational conditions. In this book chapter, we present the potential of data-driven based techniques for accurately predicting the influence of independent variables measured from the on board monitoring system and the fuel consumption of a specific case study vessel. In particular, we show that gray-box models (GBM) are able to combine the high prediction accuracy of black-box models (BBM) while reducing the amount of data required for training the model by adding a white-box model (WBM) component. The resulting GBM model is then used for optimising the trim of the vessel, suggesting that between 0.5 and 2.3% fuel savings can be obtained by appropriately trimming the ship, depending on the extent of the range for varying the trim.
Whether greenhouse gas emissions from international shipping are a type of marine pollution is a controversial issue and is currently open to debate. This article examines the current treaty definitions of marine pollution, and applies them to greenhouse gas emissions from ships. Based on the legal analysis of treaty definitions and relevant international and national regulation on this issue, this article asserts that greenhouse gas emissions from international shipping are a type of 'conditional' marine pollution.
Shipping is the most energy-efficient way to move large volumes of cargo. Yet ships emit nitrogen oxides (NOx), sulfur oxides (SOx), carbon dioxide and particulate matter (PM) into the atmosphere. The human and environmental costs of shipping are vast.It is time to crack down on the emissions and destructive development caused by vast container vessels that pollute the air and seas.Cleaner practices — especially on ship scrapping, emission control and port management — are needed. Achieving this will require heroic efforts by the industry and its engineers in collaboration with regulators, port authorities and communities. Environmental impacts should be considered in determining optimal routes and modes for delivery of goods.
The viability and environmental risks of removing carbon dioxide from the air must be assessed if we are to achieve the Paris goals, writes Phil Williamson.
The European Commission is having a difficulty in preparing for the start of the EU's emissions trading scheme (ETS) in January 2005. A total of 16 of the 25 EU member states have now had their national allocation plans (NAP) assessed and conditionally approved. These NAP show the total number of CO2 emissions allowances each state has allocated for the initial trading period until 2007 and the numbers of allowances assigned to their various industrial sectors and sites/installations involved. There are significant differences in the way the various member states have interpreted the directive. There is significant potential for competitive distortion as a result of the scheme, especially from the difference in scope of the scheme in member states. The UK position is unique. As well as setting itself as one of the most stringent of all the EU reduction targets, to contribute to a beyond-Kyoto domestic goal of a 20% cut in CO2 emissions on 1990 levels by 2010, the country already has in place its own emissions trading scheme based on Climate Change Agreements, which has been running since 2002. It could therefore potentially be eligible to opt out of the ETS scheme if deemed to possess what the Commission regards as an equivalent national instrument.
The economic feasibility and environmental impacts of three examples of end-of-life management options were analyzed with a cost–benefit analysis and an environmental life cycle assessment. The economics of ship recycling methods depend on various parameters such as the market price of reclaimed materials, ship purchase price, environmental and work safety regulation fees, labor costs, and overhead costs. Standard recycling methods are typically used in the U.S., EU, China, and Turkey. The example of recycling the USS Forrestal, showed that standard ship recycling methods can be profitable. Standard ship recycling methods must follow strict regulations, and therefore, can only release negligible amounts of hazardous substances into the environment. In addition, the reclaimed materials from standard ship recycling methods provide various life cycle environmental benefits. Substandard recycling methods, such as beaching, used in southern Asia countries, allow shipyard owners to outbid standard method recycling companies and remain profitable due to a lack of enforced environmental regulations. The non-compliance with environmental regulations, allows these substandard methods to release a large amount of harmful substances into the environment. The reefing option is neither economically viable nor completely safe for the environment, but it could improve the local economy and underwater habitats for local sea life.
Analyzing the regulation of vessel-source pollution from the perspective of the political interests of key players in the ship transportation industry, Khee-Jin Tan offers a comprehensive and convincing account of how pollution of the marine environment by ships may be better regulated and reduced. In this timely study, he traces the history of regulation at the International Maritime Organisation (I.M.O.) and investigates the political, economic and social forces influencing the IMO treaties. Also examined are the efforts of maritime states, ship-owners, cargo owners, oil companies and environmental groups to influence IMO laws and treaties.
International shipping carries around 80 per cent of global trade by volume and over 70 per cent by value. However, there is concern that the greenhouse gas (GHG) emissions from international shipping lead to adverse effects on climate, human health and marine ecosystems. Currently the international climate change regime under the United Nations Framework Convention on Climate Change (UNFCCC) process and the IMO through its Marine Environment Protection Committee are grappling with this issue, and GHG emissions from international shipping have been partially regulated by amendments to Annex VI to the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78) in 2011 and 2014. These amendments aim to reduce GHG emissions from international shipping by means of technical and operational measures. However, research indicates that the adopted technical and operational measures alone would not achieve absolute emissions reduction due to projected growth of international seaborne trade. Currently it is still controversial whether it is time to consider market-based measures (MBMs) in furthering the reduction of shipping GHG emissions. This article examines whether it is necessary to adopt MBMs, proposes a preferred MBM, and suggests that a MBM be considered in or after 2016.
A major part of the world fleet of more than 47,000 merchant ships operates under conditions that hamper energy efficiency and efforts to cut CO2 emissions. Valid and reliable data sets on ships’ energy consumption are often missing in shipping markets and within shipping organizations, leading to the non-implementation of cost-effective energy efficiency measures. Policy makers are aiming to remedy this, e.g., through the EU Monitoring, Verification and Reporting scheme. In this paper, current practices for energy performance monitoring in ship operations are explored based on interviews with 55 professionals in 34 shipping organizations in Denmark. Best practices, which require several years to implement, are identified, as are common challenges in implementing such practices—related to data collection, incentives for data misreporting, data analysis problems, as well as feedback and communication problems between ship and shore. This study shows how the logic of good energy performance monitoring practices conflict with common business practices in shipping companies - e.g., through short-term vessel charters and temporary ship organizations – which in turn can explain the slow adoption of energy efficiency measures in the industry. This study demonstrates a role for policy makers or other third parties in mandating or standardizing good energy consumption monitoring practices beyond the present requirements.
This article summarises related work undertaken by the EC-funded Research Project TARGETS, which focuses on assessing energy efficiency by a direct approach. Energy flows onboard ships are considered in the time domain for complete ship energy systems simulation, allowing for interactions at system and component levels and accounting for different configurations, operating profiles, itineraries and environmental conditions. The approach and tools form the basis for life-cycle energy management considerations, addressing design, operation and retrofitting. To demonstrate the methodology leading to the evaluation of performance-based energy efficiency and its anticipated impact on ship design and operation, a case study for containership was carried out. Results are presented and discussed, demonstrating considerable advantage in adopting a more systematic and scientific approach to address Energy Efficiency of ships.
The shipping industry expects ongoing growth in CO2 emissions to 2050, despite an apparent recent decline. Opportunities for decarbonizing the sector in line with international commitments on climate change need to be re-evaluated. This article reflects on the 3rd International Maritime Organisation's Greenhouse Gas Study 2014, to explore how the shipping sectors emissions are at odds with overarching climate objectives.
California is beginning the process of considering possible next steps for the State’s climate policy beyond the 2020 emission target mandated in the Global Warming Solutions Act of 2006 (“AB 32”). As it proceeds along this path, it is very important for the State to consider the international, national, and in-state realities and consequences of its actions.Internationally, California’s intent to address global climate change should be considered in the context of three key factors. First, California, currently representing less than one percent of global GHG emissions, an amount that will surely decline with time, itself can do very little directly to address the problem. Meaningful action will require the participation of all major emitting countries, including more meaningful action nationally by the United States. Second, current negotiations are seriously fragmented due to severe challenges reaching consensus. Nations are pursuing domestic policies of greatly varied stringency and credibility. These efforts are less than needed to address the climate problem, in part, due to a basic challenge of the “global commons”: although the costs of actions are incurred by the jurisdiction taking action, the benefits of those actions – the reduced risk of climate change – are spread globally. Third, the Air Resources Board (ARB) has indicated that the State should aim to reduce GHG emissions to 80 percent below 1990 levels, a level of reductions that is consistent with scientific guidance on the actions needed to stabilize atmospheric GHG concentrations if achieved throughout the world. Within the State, the changes in infrastructure, equipment, and behavior that would be needed to meet this 2050 goal would be both broad and deep. The costs to achieve such targets are unknown, given the many technology uncertainties, but would likely be very significant. Thus, pursuing these targets, without reciprocal commitments from other nations, would likely impose large costs without achieving comparable benefits.
International shipping accounts for 2.7% of worldwide CO2 emissions, and measures to curb future emissions growth are sought with a high sense of urgency. With the increased quest for greener shipping, reducing the speed of ships has obtained an increased role as one of the measures to be applied toward that end. Already speed has been important for economic reasons, as it is a key determinant of fuel cost, a significant component of the operating cost of ships. Moreover, speed is an important parameter of the overall logistical operation of a shipping company and of the overall supply chain and may directly or indirectly impact fleet size, ship size, cargo inventory costs and shippers’ balance sheets. Changes in ship speed may also induce modal shifts, if cargo can choose other modes because they are faster. However, as emissions are directly proportional to fuel consumed, speed is also very much connected with the environmental dimension of shipping. So when shipping markets are in a depressed state and “slow-steaming” is the prevalent practice for economic reasons, an important side benefit is reduced emissions. In fact there are many indications that this practice, very much applied these days, will be the norm in the future. This paper presents a survey of speed models in maritime transportation, that is, models in which speed is one of the decision variables. A taxonomy of such models is also presented, according to a set of parameters.
California has been a leader in advancing policy solutions to environmental and energy challenges since the 1960s. Many of those policy innovations have spread worldwide. Beginning with statutes passed by the California legislature starting in 2002 and continuing through today, California is adopting a comprehensive set of policies, regulations, and incentives to reduce greenhouse gas emissions, with particular emphasis on those associated with transportation—vehicles, fuels, and mobility. This paper reviews California's policy and regulatory approach related to transportation and highlights energy and climate policy lessons. The portfolio policy approach requires wise oversight, which will become more critical as California begins to adopt policies and rules to achieve more aggressive targets for 2030 and beyond. The shortcomings of a California-only policy approach will be overcome by expanding policy collaboration with other jurisdictions.
Squeezed between pressures of the economic downturn, the abundance of ships in certain sectors, and an avalanche of regional and international regulations aimed at reducing shipping's impact on climate change, some ship owners and managers have looked to innovate and seek opportunities to grow their influence in shipping markets.
Under economic pressure, a number of ship owners turned to hot or cold lay-ups, scrapping unproductive tonnage, or simply getting out of the business. Others looked at the ever increasing cost of bunkers and decided to position themselves as more efficient operators with high quality services to offer.
In this respect, some concerted optimisation efforts at Teekay directed in the areas of technical, commercial and operations have helped increase fleet utilization and profitability while ensuring safety and reliability of service. Some of the technical optimisation efforts include PBCF installation, CPP reprogramming, Fuel Slide valve upgrade, Alpha lubricator retrofit, Sonic cleaning of economizer, and cylinder oil consumption optimisation. Operational optimisation initiatives include Cargo heating management, Weather routing, Hull & propeller performance monitoring, and Engine performance monitoring.
Commercial optimisation includes development of tools that provide a better understanding of technical and operational limitations from a commercial standpoint. Initiatives like developing procedures for slow steaming operations and the creation of Speed vs. Fuel consumption matrix provide value-added input and technical insight. These tools support channelling efforts on allocation of the best positioned asset to a fixture and being able to select the speed and fuel consumption for both ballast and laden voyages in order to positively affect net voyage revenue.
One salutary outcome of the economic downturn has been a sharp reduction in contribution of GHG emissions by shipping. With a revival in fortune of the shipping industry one can expect a corresponding increase in GHG contributions. But does that really need to be the case? Some of the lessons learned since 2009 have contributed significantly to low carbon shipping—like slow steaming. With a strategic alignment of stakeholders’ interest to lessen shipping's impact on GHG emissions, these practices can continue to be used.
The European Union Emissions Trading Scheme (EU ETS) is the world's first large experiment with an emissions trading system for carbon dioxide (CO2) and it is likely to be copied by others if there is to be a global regime for limiting greenhouse gas emissions. After providing a brief discussion of the origins of the EU ETS, its relation to the Kyoto Protocol, and its precedents in Europe and the U.S., this paper focuses on allowance allocation—the process of deciding who will receive the newly limited rights to emit CO2. We describe how allowances were allocated in the EU ETS, with particular emphasis on the issues and problems encountered, including the lack of readily available installation-level data, the participants in the process, the use of projections, the choices of Member States with respect to auctioning, benchmarking, and new entrant provisions, and the difficult issue of deciding to whom the expected shortage was to be allocated. Finally, we discuss the recently available data on 2005 emissions and what they indicate concerning over-allocation, trading patterns, and abatement. We conclude with some observations about the broader implications of the EU ETS, what seems to be unique about CO2, and the fact that non-economic considerations inform the allocation of allowances.
Although certain guidelines have been put forward by the European Commission, Member States (MS) have had a considerable degree of freedom to elaborate their national allocation plans (NAPs) and decide on key elements for the first commitment period of the EU emissions trading scheme (EU ETS)(2005-2007). While some favour this decentralized approach, arguing that it provides flexibility and allows the consideration of `national circumstances', it may also bring many problems, in particular a possible distortion of sectoral competition. This article reviews and analyses the arguments for and against delegating the decision on key allocation elements to the MS, it discusses different degrees and alternatives for harmonization of those key elements, and analyses their pros and cons according to several criteria. The article concludes that harmonization is generally preferable to a decentralized approach, although this preference depends on the specific elements and on the assessment criteria considered.
This paper studies the impact of the energy efficiency design index (EEDI) on very large crude carriers’ (VLCCs) CO2 emissions. In competitive sectors such as the VLCC market, this analysis must be performed over a market cycle adjusting a ship's steaming speed to the market rate and bunker cost. Our numbers indicated that, over a market cycle, imposition of EEDI will result in a slight increase in VLCC CO2 emissions, relative to no regulation at all. The problem is two-fold: (1) For VLCCs, EEDI effectively limits installed power. But at current and expected Bunker Fuel Oil prices, a non-EEDI VLCC owner uses all his installed power only in a full boom. For the great bulk of her life, a non-EEDI VLCC uses little or no more power than an EEDI-compliant ship. (2) In limiting installed power, EEDI induces owners to use smaller bore, higher revolutions-per-minute engines. These engines have a higher specific fuel consumption and, more importantly, require a smaller and less efficient propeller. This means the EEDI-compliant VLCC consumes more fuel when the market is not in boom, which is 90% of the time. In contrast, we find that a $50 per ton CO2 bunker tax will reduce VLCC CO2 emissions by more than 6% over a market cycle. Moreover, it will do so without forcing the world to devote 30% more resources to a greatly expanded, under-powered, overdriven VLCC fleet.
This paper for the launching of the journal Transnational Environmental Law first sets forth a concept of transnational environmental law that encompasses but is broader than international environmental law. When we speak of transnational law and legal process, we are concerned with the migration and impact of legal norms, rules and models across borders. Such migration can occur through the mediation of international law and institutions, or through the impact of unilateral legal developments in one jurisdiction that affect behavior in others. The paper then discusses the importance of assessing transnational environmental law in light of the constraints facing consent-based international environmental law, examines the tradeoffs between transnational and international environmental law from the perspective of legitimacy, and concludes by discussing the important but delicate relation of international law to transnational environmental law as both a check and a consolidator. International law should guard against the self-serving unilateral use of transnational environmental law, but it should do so in a way that preserves (and does not shut off) the dynamic, responsive character of the transnational environmental law process. Otherwise international law itself will be delegitimized.
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