This paper aims to conduct an updated literature survey on the Market-Based Measures (MBMs) currently being proposed by various member states and organizations at the International Maritime Organization (IMO) or by the scientific and grey literature as a cost-effective solution to reduce greenhouse gas (GHG) emissions from ships. Τhe paper collects, summarizes, and categorizes the different proposals to provide a clear understanding of the existing discussions on the field and also identifies the areas of prior investigation in order to prevent duplication and to avoid the future discussion at the IMO to start from scratch. Relevant European Union (EU) action on MBMs is also described. Furthermore, the study identifies inconsistencies, gaps in research, conflicting studies, or unanswered questions that form challenges for the implementation of any environmental policy at a global level for shipping. Finally, by providing foundational knowledge on the topic of MBMs for shipping and by exploring inadequately investigated areas, the study addresses concrete research questions that can be investigated and resolved by the scientific and shipping community
This paper aims to conduct an updated literature survey on the Market-Based Measures (MBMs) currently being proposed by various member states and organizations at the International Maritime Organization (IMO) or by the scientific and grey literature as a cost-effective solution to reduce greenhouse gas (GHG) emissions from ships. The paper collects, summarizes, and categorizes the different proposals to provide a clear understanding of the existing discussions on the field and also identifies the areas of prior investigation in order to prevent duplication and to avoid the future discussion at the IMO to start from scratch. Relevant European Union (EU) action on MBMs is also described. Furthermore, the study identifies inconsistencies, gaps in research, conflicting studies, or unanswered questions that form challenges for the implementation of any environmental policy at a global level for shipping. Finally, by providing foundational knowledge on the topic of MBMs for shipping and by exploring inadequately investigated areas, the study addresses concrete research questions that can be investigated and resolved by the scientific and shipping community.
Global warming and, correspondingly, reducing CO2 emissions is one of the most challenging tasks the world faces today. The maritime industry contributed to 2.89% of the global anthropogenic CO2 emissions. To decrease this share, the International Maritime Organization (IMO) defined, among others, the goal to reduce the carbon intensity of international shipping by 40% until 2030. In this context, the short-term measures recently adopted, in the form of a technical standard (Energy Efficiency Existing Ship Index, EEXI) and a rating scheme based on an operational indicator (Carbon Intensity Indicator, CII), mark a crucial step to achieving the mentioned goal. In addition, the EU Commission has recently introduced the FuelEU Maritime Initiative limiting the annual greenhouse gas (GHG) intensity of a ship’s energy use incorporating a reduction occurring in a five-year rhythm between 2025 and 2050. The paper investigates the practical options availed to existing containerships of different sizes and technological vintages for meeting the specific EEXI, CII, and GHG intensity reduction requirements imposed by the regulations. The investigation will be based on the actual technical and operational profiles of six sample ships and will consider a set of possible compliance options including, but not limited to, engine power limitation, waste heat recovery system, variable frequency drives, and virtual arrival. The data used originates from noon reports of existing containerships provided by a European industry leader. The ship-specific CO2 emission reduction potentials required for the impact assessment result from either literature or actual data-based calculations. Financial data is used for investigating the economic impact of the reduction requirements. Conclusions drawn include an operational advantage that pre-EEDI ships enjoy when applying engine power limitation (EPL) for EEXI compliance, the occurrence of payback periods exceeding ship lifetimes, and an estimate of the effect that onshore power supply can have on complying with the FuelEU Maritime Initiative.
The report is organized as follows. The introduction will lay out the current state-of-play of eco-efficiency and the zeitgeist of the current situation on maritime that we find ourselves in, in 2020. The next section will provide some historical context looking back to 2010 and 2000 to trace the trajectory and developmental course on which we are. The core contribution of this report is the Maritime Operations Roadmap that can be found in Figure 1 on page 9. This illustration plots the expectations for technological capabilities and policy from 2020 to 2030.
Modern slavery and human trafficking present an inherent risk to workers engaged in operations surrounding shipping activities. One of the first statutes addressing the problem was the UK Modern Slavery Act [MSA], which presents several statutory sanctions for shipping companies in case of non-compliance. The article examines the sanctions available under different provisions of MSA as applied specifically to shipping activities.
As a further step, the article conducts an empirical analysis of the reporting practices of liner shipping operators, eligible for compliance under MSA. In addition to the rates of compliance, it engages in content analysis of the modern slavery statements, seeking to identify the uniform patterns of reporting and industry best practices.
The last part of the article discusses whether corporate undertakings as reported in modern slavery statements may serve as a ground for tort liability, similarly to the supply chain or ‘production liability’ emerging from group policies and codes of conduct.
Benchmarking the energy efficiency of ships is not a straightforward task, mainly due to the diversity of operations. Although driving cycles have been used for decades in evaluating the performance of road vehicles, these do not exist in formal policy-making for maritime transport. This work builds on a previously proposed methodology. It uses noon reports of 327 vessels for 2019 to construct operational cycles for seven size classes of container ships using the main engine power as the main parameter. Concerning the main engine emissions, the resulting cycles reduce variation in the carbon intensity indicator values by more than 30% while maintaining an average accuracy of 97.7% in absolute emissions. These figures show that the concept can improve operational carbon intensity indicators in terms of robustness and their technical counterparts in optimizing ship design. The paper also proposes further work required for benchmarking applications in policy-making.
The regulation of greenhouse gas emissions from international shipping is becoming a matter of increasing concern. Two issues arise in particular. The first issue concerns the elaboration of rules on this subject. In this regard, Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL), amended in 2011, constitutes a key instrument because it was the first legally binding climate change instrument since the Kyoto Protocol. The second issue relates to effective compliance with relevant rules. While the flag State has the primary responsibility to implement relevant rules concerning the regulation of greenhouse gas emissions from international shipping, the flag State responsibility alone is inadequate to secure effective compliance with relevant rules. Thus, there is a need to examine the question whether and to what extent coastal and port States can regulate greenhouse gas emissions from vessels in international law. This article seeks to address these two issues. The article concludes that while port States can perform a valuable role in effectuating global rules provided in MARPOL Annex VI, port State control encounters several challenges. Thus, securing compliance with relevant rules should be an important issue in the regulation of greenhouse gas emissions from international shipping.
The report is organized as follows. The introduction will lay out the current state-of-play of eco-efficiency and the zeitgeist of the current situation on maritime that we find ourselves in, in 2020. The next section will provide some historical context looking back to 2010 and 2000 to trace the trajectory and developmental course that we are on. The core contribution of this report is the Shipyard 4.0 Roadmap, that can be found in Figure 1 on page 9. This illustration plots the expectations for technological capabilities and policy from 2020 to 2030. The descriptions of the elements of the roadmap are provided in Appendix 1.
The regulation of private activities that take place overseas has received significant attention in the legal scholarship. The traditional discussion of the topic observes such regulation from the perspectives of public international law principles of jurisdiction or private international law conflict of laws rules. The present article contributes to the discussion from the perspective of private parties engaged in shipping activities, who face an increasing need of compliance with different regulatory acts of extraterritorial application. It argues that the proliferation of such acts incentivizes private parties to include regulatory interests in their business activities.
The article further suggests that extraterritorial regulation can serve as a trigger for transfer and intrinsic adoption of state’s regulatory interest by private parties. It observes the examples of such ‘privatization of extraterritoriality’ in corporate compliance policies and contractual CSR clauses used by shipping companies, noting their spillover effects over other parties. It further notes that the proliferation of extraterritorial regulation sometimes results in the universalization of responses from private parties, as acquisition of regulatory interest untied from its nation-state origins. The concluding section puts the observed phenomenon into a broader picture, discussing the contribution of extraterritorial regulation to the mechanisms of private governance.
Plastic litter is introduced into the oceans from land-based sources located in many countries around the world. Marine plastic pollution may therefore be attributable to multiple states, resulting in shared state responsibility. This article discusses the issue of shared state responsibility for land-based marine plastic pollution by examining (i) primary rules of international law concerning the prevention of land-based marine plastic pollution; (ii) secondary rules of international law on this subject; and (iii) possible ways of strengthening the primary rules. It concludes that the barrier for the invocation of state responsibility may become higher in cases of shared state responsibility. Three cumulative solutions to this problem are proposed: elaborating the obligation of due diligence, strengthening compliance procedures, and interlinking regimes governing the marine environment and international watercourses.