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Impacts of a bunker levy on decarbonizing shipping: A tanker case study

Sotiria Lagouvardou, Harilaos N. Psaraftis, Thalis Zis

The pressure on shipping to reduce its carbon footprint is increasing. Various measures are being proposed at the International Maritime Organization (IMO), including MarketBased Measures (MBMs). This paper investigates the potential of a bunker levy in achieving short-term CO2 emissions reductions. The analysis focuses on the tanker market and uses data from the latest IMO GHG studies and a variety of other sources. The connection between fuel prices and freight rates on the one hand and vessel speeds on the other is investigated for the period 2010-2018. A model to find a tanker’s optimal laden and ballast speeds is also developed and applied to a variety of scenarios. Results show that a bunker levy, depending on the scenario, can lead to short-term CO2 emissions reductions of up to 43%. Policy implications are also discussed, particularly vis-à-vis recent IMO and European Union (EU) action on MBMs.

Transportation Research. Part D: Transport & Environment / 2022
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Impacts of Large-scale Offshore Wind Power Plants Integration on Turkish Power System

Yunus Yalman, Ozgur Celik, Adnan Tan, Kamil Cagatay Bayindir, Umit Cetinkaya, Merden Yesil, Mevlut Akdeniz, Gibran David Agundis Tinajero, Sanjay K. Chaudhary, Josep M. Guerrero & Baseem Khan

In this paper, the impacts of large-scale OWPPs penetration on the Turkish power system are addressed. The grid compliance analyzes for the large-scale OWPP integration are carried out by using the grid connection criteria defined in the Turkish grid code. PV and QV curves are obtained to assess the effect of OWPP on the static voltage stability limit. Eight scenarios are conducted to analyze the effect of the OWPP on the static and dynamic characteristics of the power grid. To observe the large-scale OWPP impact on the voltage and frequency stability, transient events such as the outage of conventional power plants and three-phase to ground faults are applied. The results of the voltage and frequency stability analysis reveal that the Turkish grid remains stable after the integration of an 1800 MW OWPP. Furthermore, the Turkish system remains stable even in the event of an outage of the international transmission lines to Bulgaria and Greece.

IEEE Access / 2022
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Impacts of short-term measures to decarbonize maritime transport on perishable cargoes

Thalis P. Zis, Harilaos N. Psaraftis

The International Maritime Organization (IMO) has adopted a strategy to reduce emissions from international shipping that sets very ambitious targets. The first set of actions, so-called short-term measures, are expected to be implemented by 2023 and result in a reduction of emission intensity by at least 40% by 2030 compared with 2008 levels. Compliance may be achieved through a reduction in sailing speeds, but certain countries have raised concerns on the ramifications of longer transit times on their exports, particularly for perishable products. In this paper, we present a methodology to assess the impacts of various short-term measures on perishable products. We use an extension of a nested modal split model to examine shifts towards other modes of transport. We demonstrate our methodology with a transpacific case study carrying perishable products from South America to China. We compare the short-term measures currently under discussion, in one of the first academic studies to explore these issues. These include a speed limit approach, a power limit, and a goal-based measure. Our results show that a power limit or a goal-based measure would offer some advantages to liner shipping operators using more efficient vessels, unlike a speed limit. Using 2008 as the benchmark year has resulted in small speed reductions required by the liner shipping sector to reach its targets. For perishable cargoes, small speed reductions can be tolerated by the shippers without significant modal shift. Choosing the right short-term strategy is of utmost importance to promote clean shipping practices in the following years.

Maritime Economics & Logistics / 2021
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Implementation of IMO instruments from a port state perspective

Nelson F. Coelho

In seeking to fulfill its mission, the International Maritime Organization (IMO) is dependent on the capabilities of its Member States. While flag States remain primarily responsible for ensuring compliance of their registered vessels with instruments adopted under that United Nations specialized agency's aegis, coastal States also play a competing but complementary role in the balance of jurisdiction over ships. In particular, the right to regulate the vessel's intent on visiting the port, or its presence therein, is often relied upon to account for the limitations of flag State enforcement. The capacity to act as a port State under international law is the basis for certain implementation mechanisms stemming from treaty provisions on port state control, as well as for innovative practices of port States, either collectively or individually. This chapter provides the reader with an overview of the role of port State jurisdiction in IMO law and practice, and the challenges that can arise in the complex relationship between port States and the IMO.

Edward Elgar Publishing / 2024
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Implementation Politics: the Case of Denmark Under the Common Fisheries Policy

Troels Jacob Hegland & Jesper Raakjaer

ABSTRACT: Denmark is among the more loyal European Union (EU) member states when it comes to national implementation of the Common Fisheries Policy (CFP). However, even in Denmark several mechanisms contribute to sub-optimal implementation of the CFP. Looking at implementation problems for a relatively loyal member state, this chapter sheds critical light on national implementation of the CFP in the EU as a whole. The chapter initially provides a description of the institutional set-up for fisheries policy-making and implementation in Denmark, including a short historical account of the development of the Danish fisheries and their management since 1983. Subsequently, the chapter provides an understanding of the mechanisms and processes behind the Danish implementation of fisheries policy, arguing that these mechanisms and processes have led to a situation where the goals agreed at the EU level are supplemented or even replaced by national priorities. The chapter concludes that in order to capture the domestic politics associated with CFP implementation in Denmark, it is important to understand the policy process as a synergistic interaction between dominant interests, policy alliances/networks and prevailing discourses. The inability of the EU to ensure that the conservation goals agreed at the EU level are loyally pursued during national implementation is one of the reasons why the EU has been struggling to keep fishing mortality rates at a sustainable level.

Springer / 2008
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Implementing ecosystem-based marine management as a process of regionalisation: Some lessons from the Baltic Sea

Troels Jacob Hegland, Jesper Raakjaer & Jan van Tatenhove

This article deals with the implementation of ecosystem-based marine management in the Baltic Sea. It explores and documents in particular the preliminary lessons from environmental and fisheries management with reference to the Helsinki Commission Group for implementation of the ecosystem approach and the Baltic Sea Fisheries Forum, both examples of regionalization processes in order to implement ecosystem-based marine management. The Helsinki Commission Group for implementation of the ecosystem approach is a joint management body for the implementation of the Baltic Sea Action Plan and the European Union's Marine Strategy Framework Directive. The Baltic Sea Fisheries Forum is a new governing body to facilitate regional cooperation in fisheries management. The aim of the article is twofold: a) to describe and discuss two different pathways of regionalization in the Baltic Sea and b) to explore how these forms of regionalization could contribute to the implementation of governance structures needed to implement ecosystem-based marine management at the level of a regional sea – efficiently, legitimately and effectively. We conclude that a nested governance structure could be developed by building upon existing institutions while learning from new initiatives to organize stakeholder involvement.

Ocean & Coastal Management / 2015
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Implications of the Emission-Related Policy Environment on Existing Containerships

M. Schroer, G. Panagakos, M. Bruhn Barfod

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.

7th World Maritime Technology Conference 2022 - Tivoli Congress Center, Copenhagen, Denmark / 2022
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Implications of the EU Emissions Trading System (ETS) on European container routes: A carbon leakage case study

Sotiria Lagouvardou*, Harilaos N. Psaraftis

The paper focuses on the impacts of the inclusion of the maritime sector in the EU Emissions Trading System (ETS). The enforcement of a regional Market-Based Measure (MBM) such as the EU ETS may provide financial incentives to shipping operators to reconfigure their networks and avoid voyages inside the European Economic Area (EEA). This paper investigates the risk of container vessels engaging in evasive port calls by replacing EEA transshipment hubs with nearby non-EEA competitors. We perform a cost-benefit analysis that calculates the cost of EU Allowances (EUAs) for several international services and compares it with a relocation scenario. Our case studies focus on the Piraeus-Izmir and the Algeciras-Tanger Med scenarios and identify the EU carbon price turning point that will render the switch of the transshipment hubs a cost-effective choice for the operator. The results show that the preference of a non-EEA hub will become attractive for carbon prices well below 25 EUR per metric ton of CO2. Further, in all cases, the hub switch results in a rise in the overall carbon emissions attributed to the service which amplifies the risk of carbon leakage. Our results show that the relocation would lead to revenue loss for the EU ETS and penalization of the EEA transshipment hubs in close proximity with hubs outside the EEA, thus posing a threat to their economic activity and development.

Maritime Transport Research / 2022
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Implications of the EU’s Inclusion of Maritime Transport in the Emissions Trading System for Shipping Companies

Shuaian Wang, Lu Zhen, Harilaos N. Psaraftis, Ran Yan

Maritime transport is the backbone of international trade. The amount of total international maritime trade in million tonnes loaded was 8408 in 2012 and had increased to 11.076 by 2019, for an average annual increase of 3.12%. In early 2020, the world fleet contained 98.140 ships of 100 gross tonnes and above with 2.06 million dead weight tonnage of capacity. The greenhouse gas (GHG) emissions from shipping activities are not negligible. According to the fourth GHG study commissioned by the International Maritime Organization (IMO), in 2018, global shipping emitted a total of 1056 million tonnes of carbon dioxide (CO2), accounting for around 2.89% of global anthropogenic CO2 emissions. Due to the international nature of shipping, efforts to control CO2 emissions from ships are absent from the Kyoto Protocol and the Paris Agreement. In an attempt to phase out carbon emissions from shipping entirely, the IMO formulated a strategy to cut the total annual GHG emissions from shipping by at least 50% from their 2008 levels by 2050; however, no mandatory rules have been promulgated since the release of this strategy.

Given the insufficient progress made by the IMO, the European Union (EU) decided to take a leading role in promoting the reduction of CO2 emissions from maritime transport. In 2015, the EU issued regulations on the monitoring, reporting, and verification (MRV) of CO2 emissions from ships with a gross tonnage above 5000 arriving at, within, or departing from ports under the jurisdiction of an EU member state, to come into force at the beginning of 2018. It should be noted that, under the MRV regime, even if only one port on a voyage is within the European Economic Area (EEA) and the other is not (e.g., a voyage from Rotterdam directly to Singapore), the ship must still report the total CO2 emissions of the whole voyage, rather than just the emissions of the part of the voyage within EU waters.

The MRV regime has been in operation for over two years, and the CO2 emissions data for the 2018 and 2019 reporting periods have already been published. Based on the data collected, on 16 September 2020, the European Parliament took the bold step of voting for the inclusion of maritime transport in the EU Emissions Trading System (ETS). This is a market-based system that uses economic tools such as a levy on bunker fuels and an emission trading system to provide monetary incentives for polluters to reduce emissions. The European Commission is conducting an impact assessment of the ETS, the results of which are expected in 2021. At this time, it is unclear how the inclusion of shipping into the EU ETS will work. There are two possibilities. The first is that only intra-EU voyages will be included; that is, only voyages from one EEA port to another EEA port will have to pay CO2 emission costs. The second is that both intra-EU voyages and voyages between an EEA port and a non-EEA port will have to pay CO2 emission costs, with the cost of a voyage between an EEA port and a non-EEA port being based on the CO2 emissions over the whole voyage, rather than the part of the voyage within EU waters. As the second possibility also covers the first possibility, we examine the implications of both possibilities but focus more on the second.

Engineering / 2021
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Importance of Vanadium-Catalyzed Oxidation of SO2 to SO3 in Two-Stroke Marine Diesel Engines

Colom, Juan M.; Alzueta, María U.; Christensen, Jakob M.; Glarborg, Peter; Cordtz, Rasmus; Schramm, Jesper

Low-speed marine diesel engines are mostly operated on heavy fuel oils, which have a high content of sulfur and ash, including trace amounts of vanadium, nickel, and aluminum. In particular, vanadium oxides could catalyze in-cylinder oxidation of SO2 to SO3, promoting the formation of sulfuric acid and enhancing problems of corrosion. In the present work, the kinetics of the catalyzed oxidation was studied in a fixed-bed reactor at atmospheric pressure. Vanadium oxide nanoparticles were synthesized by spray flame pyrolysis, i.e., by a mechanism similar to the mechanism leading to the formation of the catalytic species within the engine. Experiments with different particle compositions (vanadium/sodium ratio) and temperatures (300–800 °C) show that both the temperature and sodium content have a major impact on the oxidation rate. Kinetic parameters for the catalyzed reaction are determined, and the proposed kinetic model fits well with the experimental data. The impact of the catalytic reaction is studied with a phenomenological zero-dimensional (0D) engine model, where fuel oxidation and SOx formation is modeled with a comprehensive gas-phase reaction mechanism. Results indicate that the oxidation of SO2 to SO3 in the cylinder is dominated by gas-phase reactions and that the vanadium-catalyzed reaction is at most a very minor pathway.

Energy Fuels / 2016
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