Keyword: Sustainability


Market-Based Measures for Sustainable Shipping

Sotiria Lagouvardou

This PhD thesis examines the role of market-based measures (MBMs) in incentivizing international shipping greenhouse gas (GHG) emissions reductions to leverage the decarbonization efforts of the International Maritime Organization (IMO). The research motivation sprang from the Initial IMO Strategy, which, among other climate ambitions, envisages at least a 50% curb of GHG emissions until 2050 vis-a-vis 2008 levels. The regulatory framework involves several candidate measures, including MBMs, i.e., environmental policies like carbon taxes and emissions trading systems (ETS) that enforce the "polluter-pays" principle, and thus provide fiscal incentives to stakeholders to eliminate their carbon footprint.

The assessment of MBMs as means of decarbonizing shipping is based on three main pillars: their economic efficiency, their environmental effectiveness, and their climate policy design. Compliance with carbon pricing regimes can entail the adoption of both operational measures, such as speed reduction, route reconfiguration, or voyage optimization techniques, and technological measures like the uptake of zero-carbon technologies and alternative marine fuels. Due to this wide range of conformity practices, this thesis assesses several short- and long-term responses to MBMs in order to encapsulate their cost effectiveness in relation to their carbon abatement potential.

From a climate policy design perspective, the two most prominent types of MBMs are the carbon taxes, a fixed-price approach that provides carbon price certainty, and the ETSs, a fixedquantity system that secures that GHG emissions levels are met. At first, the study evaluates the prospects of a carbon levy to achieve GHG emissions reductions by analyzing the macroeconomic effects of freight rates and fuel prices in inducing slow steaming as an operational response to the MBM. The results show that market conditions influence the overall effectiveness of a tax and that the attained reductions, although significant, are insufficient to reach the 50% decarbonization targets. Moreover, considering the imminent inclusion of the maritime sector into the EU ETS, the thesis examines the scenario of liner shipping operators opting for route reconfigurations as an operational response to a regional ETS. The outputs reveal that replacing EU ports with nearby non-EU competitor ports becomes cost-effective for minimal EU carbon prices. The action would result in carbon leakage, EU ETS evasion, loss of EU ETS revenue, and penalization of the EU ports.

To the extent that MBMs induce technological changes, this thesis evaluates the level of carbon pricing needed to close the price gap between alternative and conventional marine fuels. The analysis considers the capital and operational costs for implementing and utilizing alternative marine fuels onboard and develops their marginal abatement cost curves (MACCs) to evaluate their cost-competitiveness and carbon abatement spectrum. The analysis indicates that to reach full maritime decarbonization, fuels such as green liquid hydrogen and their supporting technology, as of today’s cost estimations, would require a carbon price of up to 700 USD/MT CO2e to become cost-competitive.

The thesis concludes that accounting for a well-to-wake scope of emissions will create the right
incentives for developing sustainable alternative marine fuel production pathways to facilitate
shipping’s future energy demand. Revenues from MBMs will be substantial and can accelerate
R&D, scale-up the availability of alternative fuels, subsidize "fist-movers" and green ships and
reverse possible detrimental effects of carbon pricing to developing countries such as the Least
Developed Countries (LDCs) and the Small Island Developing States (SIDS).

PhD thesis / 2023
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Framework for Sustainability Assessment of Maritime Terminals

Ana Borda Zabala*, Julia Pahl, Niels Rytter

The maritime sector contributes significantly to climate change, given thenumber of global emissions that this represents. Emissions inventorying isone of the measurement system approaches considered in terminals to mitigate harmful emissions. The concept of sustainability has gained attentionwhere economic, social, and environmental dimensions need to be balanced.Assessing all three sustainability dimensions is important. Both the environment and the society, e.g., human health and safety, are impacted by terminal operations. Reducing their negative impact can compromise the economicgrowth of the terminal. This is challenging the maritime sector, and althoughsome authors define methods to evaluate sustainability in terminals, nostandard guideline is available in the literature. The lack of a common reference guideline makes comparison of sustainability actions in terminals difficult.This paper presents a sustainability assessment framework based on theanalysis of the state of the art in literature contributing to sustainable development of terminals and supporting decision-makers.

IAME Conference 2022 (International Association of Maritime Economics) - Korea, Busan, Sydkorea / 2022
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Maritime in the 21st century: 2000-2030 The state of play, a brief history, a roadmap, and scenarios focusing on the Baltic Sea and Ro-Ro shipping

Spaniol, Matt; Steger-Jensen, Kenn; Lützen, Marie; Rytter, Niels Gorm Maly; Ziukas, Andrius; Lappalainen, Otto; Ehlers, Valdemar; Karvonen, Taipo

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.

Ecoprodigi Report / 2020
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A genetic algorithm-based grey-box model for ship fuel consumption prediction towards sustainable shipping

Yang, Liqian; Chen, Gang; Rytter, Niels Gorm Malý; Zhao, Jinlou; Yang, Dong

In order to enhance sustainability in maritime shipping, shipping companies spend good efforts in improving the operational energy efficiency of existing ships. Accurate fuel consumption prediction model is a prerequisite of such operational improvements. Existing grey-box models (GBMs) are found with significant performance potential for ship fuel consumption prediction, although having a limitation of separating weather directions. Aiming to overcome this limitation, we propose a novel genetic algorithm-based GBM (GA-based GBM), where ship fuel consumption is modelled in a procedure based on basic principles of ship propulsion and the unknown parameters in this model are estimated with a GA-based procedure. Real ship operation data from a crude oil tanker over a 7-year sailing period are used to demonstrate the accuracy and reliability of the proposed model. To highlight the contribution of this work, we compare the proposed model against the latest GBM. The results show that the fitting performance of the proposed model is remarkably better, especially for oblique weather directions. The proposed model can be employed as a basis of ship energy efficiency management programs to reduce fuel consumption and greenhouse gas (GHG) emissions of a ship. This is beneficial to achieve the goal of sustainable shipping.

S.I.: OR for Sustainability in Supply Chain Management / 2019
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