Table 2 Strategies in securing funding for shipping decarbonization ınitiatives
No | Strategy | Group | Description | Source |
|---|---|---|---|---|
1 | Using incentives to cover onshore power service fees | I | Onshore Power Supply (OPS) technology is a strategic initiative for mitigating ship emissions at ports. By enabling vessels to connect to shore-based electricity, OPS reduces onboard engine use, curbing pollutants and greenhouse gases. This eco-friendly approach aligns with environmental goals, enhancing air quality and lowering carbon footprints. Economically, OPS minimizes ship fuel consumption during port stays, yielding cost savings. However, challenges include initial high setup costs and the need for regulatory incentives to drive widespread adoption. Despite hurdles, OPS stands as a pivotal strategy, harmonizing ecological and economic imperatives for sustainable maritime operations | Camargo-Díaz et al. (2022) |
2 | Financing maritime decarbonization projects | F, I | Securing financing for maritime projects is crucial to meet global decarbonization goals. Shipowners, shipping firms, and port authorities face challenges in adopting green technologies. These hurdles encompass establishing sustainable fuel chains, incorporating operational changes, and investing in eco-friendly shipbuilding. To overcome financial barriers, a strategic approach involves collaborative efforts among stakeholders, leveraging public–private partnerships, and accessing international funding mechanisms (i.e. carbon revenues). Policymakers must incentivize investments in green initiatives, fostering a transition to cleaner practices in the maritime sector and aligning with the broader imperative of achieving environmental sustainability | Sari (2023), Camargo-Díaz et al. (2022), Czarnecka et al., (2022), Chen et al., (2021), Wan et al., (2021) |
3 | Differentiating port charges | I | Differentiated port charges represent a strategic approach to incentivize environmentally friendly practices in maritime transport. This initiative involves offering discounted port charges to ships employing eco-friendly technologies or adhering to sustainable operational practices during port calls. By providing financial benefits to such vessels, this strategy encourages shipowners to invest in greener technologies, ultimately reducing emissions and promoting environmental sustainability in the maritime sector. This approach aligns economic incentives with environmental objectives, fostering a transition toward cleaner and more sustainable shipping practices while enhancing the competitiveness of eco-conscious fleets in the industry | Camargo-Díaz et al. (2022) |
4 | Develop sustainability certifications and suitable schemes | P | Guarantees of Origin (GO) serve as a strategic tool to assure ship operators of the renewable and sustainable nature of a specific fuel. GOs provide a transparent certification, verifying the renewable energy source and origin of the fuel used in maritime operations. By offering a reliable mechanism to track and validate the environmental credentials of fuels, GOs instill confidence among ship operators, facilitating informed choices aligned with decarbonization goals. This strategy promotes accountability, transparency, and trust in the maritime industry's transition towards sustainable and renewable energy sources, contributing to a greener and more responsible shipping sector | Irena (2021), Morchio et al., (2024), Rizou, (2023), Ozili, (2022), Amundsen and Osmundsen (2020) |
5 | Promoting stricter local regulations to limit airborne emissions in port and navigation channels, and make OPS at ports compulsory whenever available | P | Enforcing onshore power usage during port operations is a strategic initiative to curb airborne pollutants and greenhouse gas emissions. By mandating vessels to plug into the port's electricity grid, auxiliary engine use is minimized during docking, leading to a substantial reduction in environmental impact. This approach aligns with sustainability goals, fostering cleaner air quality and contributing to global emission reduction targets. Successful implementation requires collaborative efforts among port authorities, shipping companies, and regulatory bodies, ensuring a more eco-friendly and responsible maritime industry | |
6 | Implementing a Cap-and-Trade system with strict pollution limits and tradable allowances | P | Implementing an emissions trading system (ETS) for shipping incentivizes companies to cut emissions, fostering innovation and sustainability in the shift to a decarbonized economy. By placing a cap on emissions and allowing trading of emission allowances, it encourages efficiency improvements and adoption of cleaner technologies. Companies exceeding the cap can buy allowances from those below, stimulating a market-driven push toward greener practices. This strategy aligns economic incentives with environmental goals, propelling the shipping industry towards a more sustainable and low-carbon future | EPA (2022a, 2022b), Sun et al. (2024), Flodén et al. (2024), Cullinane and Yang (2022), Cariou et al. (2021) Lagouvardou and Psaraftis (2022), Wan et al. (2018), Halim et al. (2018), Zhu et al. (2018) |
7 | Implementing enough incentives for attracting operators to nearby non-EU ports | I | The implementation of an emissions trading system (ETS) in the EU may prompt line operators to relocate transshipment activities to nearby non-EU ports. Concerns about increased operational costs due to emission allowances could drive companies to seek more cost-effective options outside the EU jurisdiction. To address this challenge, it's crucial for policymakers to establish global collaboration on emission reduction efforts and create a level playing field. This ensures that companies are incentivized to adopt sustainable practices without resorting to relocation, fostering a globally coordinated approach to maritime decarbonization | Lagouvardou and Psaraftis (2022), Tvedt and Wergeland (2023), Camargo-Díaz et al. (2022), Merk (2020), Nikolakaki (2013) |
8 | Hedging carbon future contracts to manage the carbon pricing risk | P | Carbon pricing risk in the shipping industry refers to the financial exposure shipping companies face due to potential future costs associated with carbon emissions. As companies navigate this risk, a strategic approach involves proactively investing in emission reduction technologies. By adopting cleaner technologies, companies not only mitigate potential carbon pricing liabilities but also position themselves to comply with evolving regulations. This strategy aligns financial prudence with environmental responsibility, fostering a resilient and sustainable business model amidst the global push for carbon pricing and emission reduction in the maritime sector | |
9 | Applying better fund models (i.e. International Maritime Research Fund, IMRF) for helping alternative fuels and technologies | F | Establishing a financing ecosystem is a strategic approach to secure funding for the maritime industry, aligning with the IMO and EU targets for 2030 and 2050. This strategy involves creating robust financial mechanisms, including public–private partnerships, green bonds, and investment incentives. By channeling funds towards research, development, and implementation of sustainable technologies, it facilitates the industry's transition to meet ambitious emission reduction goals. This financing strategy not only addresses the capital-intensive nature of eco-friendly initiatives but also ensures alignment with international regulations, driving the maritime sector towards a low-carbon and environmentally sustainable future |