Decarbonization in the maritime industry: Factors to create an efficient transition strategy
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DOIhttp://dx.doi.org/10.21511/ee.15(2).2024.04
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Article InfoVolume 15 2024, Issue #2, pp. 42-63
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The maritime industry faces intense scrutiny to address climate change amidst strict environmental regulations and societal expectations. The paper mainly focuses on understanding and evaluating the key factors driving the transition toward decarbonization in shipping. The study utilized qualitative analysis, focusing on reviewing current environmental targets set by major regulatory bodies, notably the International Maritime Organization (IMO) and the European Union (EU).
The study concludes that a clear strategy for reducing emissions is essential, and a holistic approach must be adopted. Thus, the investigation identified several critical factors that can facilitate the creation of an effective strategy to achieve net zero emissions, comply with regulatory goals, and reduce current emissions. They are decarbonization levels (solutions), ecosystem (value chain), and drivers (enablers), collectively referred to as the decarbonization LED model.
The study emphasizes the importance of stakeholder engagement and policy advocacy to support zero-emission transition. For instance, the paper explores the sector’s decarbonization potential through a value chain perspective (Scope 3): employing the life-cycle approach to assess the complete environmental footprint of ship – “Cradle-to-Grave” frameworks (from raw material extraction, production, and product use, until the end of its life) and “Well-to-Wake” methodology to evaluate greenhouse gas emissions from fuel production to end-use by a ship. Additionally, the paper assesses the potential impacts of environmental regulations in the maritime sector, predicting significant transformations in the industry’s operational, technological, and collaborative practices.
Acknowledgment
This study was partially supported by the SEUS project – Horizon Europe Framework Programme (HORIZON), under grant agreement No 101096224. This article reflects only the authors’ views, and the European Commission is not responsible for any use that may be made of the information it contains.
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JEL Classification (Paper profile tab)F42, H87, L38, L52, L91, L98
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References81
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Tables1
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Figures11
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- Figure 1. Action levels to reduce carbon footprint and reach net zero emissions
- Figure 2. Decarbonization pathway
- Figure 3. Key factors for developing companies’ efficient net zero transformation strategy
- Figure 4. IMO Roadmap and Strategy for the reduction of GHG emission from ships
- Figure 5. The context of regulations
- Figure 6. Decarbonization regulatory timeline for EU and IMO overlap
- Figure 7. Interdependent value chains in the maritime ecosystem
- Figure 8. Well-to-Wake accounting of GHG Emissions (LCA methodology)
- Figure 9. The EU “Green compass” towards transparency in sustainable reporting
- Figure 10. The Scopes to reduce carbon footprint and reach net zero emissions
- Figure 11. Cradle-to-Grave accounting of GHG Emissions (LCA methodology)
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- Table A1. Development of key maritime decarbonization initiatives
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