Abstract
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.
Highlights
The results indicate that the main focus in green shipping is on air pollution and, on the classification of measures to reach those goals such as the technical, operational, and market-based measures along with recycling and reusing
The results showed that a Maritime Emission Trading Scheme (METS) can incentivize operators to implement new technologies on their vessels and invest in renewing instead of retrofitting the existing fleet
This study provides insightful results that can be further analyzed, and incorporates technical information as well as details on actual econometric values that apply in Shipping
Summary
Climate policies aim to reduce greenhouse gas (GHG) emissions in a cost-effective way. In a command and control scenario, a designated authority formulates a direct regulation by setting benchmarks for restricting the factors that lead to GHG emissions (for instance, speed, power, or fuel consumption limits). In a global environment like shipping, where there is a high degree of variability in vessel building specifications and operating practices, the identification of benchmarks is very challenging [2]. A command and control approach restricts investments in technology as it gives little or no incentive for firms to innovate [3] and can penalize green operators; for instance, by forcing two vessels to sail at the same speed when one uses more energy-efficient propulsion technology
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