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 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 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.

Global strategy gone astray: Maersk's big box boats and the world shipping industry

“…Maersk operates in an industry which is impacted by strict regulatory standards (Tang & Sun, ), complex value chains (Gereffi, ; Jensen et al, ), emission problems, and greenhouse gases (Chen, Yip, & Mou, ; Fenton, ; Horvath, Fasihi, & Breyer, ; Kim & Seo, ; Pierre, Francesco, & Theo, ; Rahim, Islam, & Kuruppu, ; The Economist, , ; Traut et al, ; Wan, Makhloufi, Chen, & Tang, ). Carbon emission standards and greenhouse gases are particularly important when formulating long‐term global strategies (Chang & Huang, ; Chen, Fei, & Wan, ; Shrivastava & Busch, ).…”

“…Operational disruptions and labor unions can equally impact the shipping industry and its billions of dollars of operations (Chen et al, ; Corbett & Winebrake, ; Fenton, ; Horvath et al, ; Kopela, ; Milne, , ; Parviainen, Lehikoinen, Kuikka, & Haapasaari, ; Pettit, Wells, Haider, & Abouarghoub, ; The Economist, ; Traut et al, ; Wan et al, ). Networks and sourcing remain critical to the global shipping and container industry because of corporate efficiencies and timely operations (Li, Xu, & Shi, ; Lorange & Fjeldstad, ; Puranam, Gulati, & Bhattacharya, ).…”

Thermal desalination of ballast water using onboard waste heat in marine industry

“…Waste heat utilization has become an important concept in shipping industry similar to other industrial applications in recent years . The shipping industry contributes significant environmental emissions by consuming large quantities of fossil fuels for marine transportation . Waste heat generated from shipping operations (marine engine and exhaust gas) and service cooling can be used for treating ballast water because waste heat from ship propulsion and onboard equipment may be used to raise the temperature of the water without the formation of chemical byproducts or residuals .…”

“…[8][9][10][11][12] The shipping industry contributes significant environmental emissions by consuming large quantities of fossil fuels for marine transportation. 13 Waste heat generated from shipping operations (marine engine and exhaust gas) and service cooling can be used for treating ballast water because waste heat from ship propulsion and onboard equipment may be used to raise the temperature of the water without the formation of chemical byproducts or residuals. 14 To destroy biological components, ballast water should be heated to 35°C to 45°C and held there for a set period of time.…”

Practical solutions for LNG Fuelled Ships

“…The solution of LNG as a fuel, besides being economically viable, the claims of effectiveness of different solutions adopted to tackle emissions has to be evidence-based, and this requires a systematic approach of continuous assessment and refinement (Wan, 2018). A feasible way to address this is through real-time data monitoring of vessels, since accurate data contributes to evidence-based policymaking (Sanderson, 2002).…”