10.6 Conclusions
Maritime transport has a critical role in addressing the sustainability challenges of
our times. It plays a key role in international trade, providing market access and
linking communities. “Safe, secure, energy-efficient, affordable, reliable,
low-carbon, environmentally friendly, climate-resilient and rule-based maritime
transport systems contribute to achieving an economically efficient, socially equitable and environmentally sound development” (Benamara et al. 2019). The new
regulatory challenge posed by the sulfur cap in 2020 has generated substantial
uncertainty in the shipping industry. While the shipping industry is focusing on
the sulfur cap, the greatest challenge it has likely ever faced is the need to find the
effective means of decarbonizing in line with global commitments. The speed of the
required transition along with the relative difficulty of technological options vis-avis other sectors of the economy makes this a particularly demanding endeavor.
A number of government-led initiatives indicate a growing awareness of the
shipping challenge, while initiatives at the level of industry and companies suggest
a new reckoning of corporate responsibility. The International Maritime Organization will have a critical role to play in determining the right approach for
decarbonization policy. Market-based mechanisms could potentially play an important role though they are still far from the center of the debate. They can incentivize
the low carbon transition, spurring innovation across CO 2 emissions options and
providing needed funding both for innovation and supporting developing economies
address the heightened burdens of the transition. They are likely however to be one
of many measures, regulations, and initiatives needed for the task. Scaling up
financial resources and investments will also be an important enabler. This is a
role that can be undertaken by regional and national development banks, e.g., the
European Investment Bank (EIB) and ING signed an agreement to support the
European shipping market with 300 million worth of green investment. Green
bonds are another potential instrument for large infrastructural investments.
Enhancing the sustainability of the maritime transport will require a multisector
approach involving governments, transport industry, financial institutions, academia, and civil society. The inherently international nature of maritime transport
would seem to make it especially suited for global challenges, but it is also a
potential weakness in that most governance institutions and their means of enforcing
law and regulation are national in nature. Besides the ambitious goals of the
European Green Deal and the European Climate Law of achieving climate neutrality
by 2050 in alignment with the Agenda 2030 and IMO regulation, there is a lack of
depth in the individual targets that need to be met by all parties that can conrtribute to
the low carbon transition. Shipping industry, as well as other sectors, needs to be
specifically mentioned and targeted in the short-medium-long term in these agendas;
otherwise, the overarching goal of reducing GHG by 2050 will not be achieved.
Furthermore, financial mechanisms that will be essential for climate neutrality
achievement need to be explicitly stated, while maritime transport emissions should
be included in the EU ETS if the IMO doesn’t take effective action by 2021.
168
A. Papandreou et al.
Maritime transport has a critical role in addressing the sustainability challenges of
our times. It plays a key role in international trade, providing market access and
linking communities. “Safe, secure, energy-efficient, affordable, reliable,
low-carbon, environmentally friendly, climate-resilient and rule-based maritime
transport systems contribute to achieving an economically efficient, socially equitable and environmentally sound development” (Benamara et al. 2019). The new
regulatory challenge posed by the sulfur cap in 2020 has generated substantial
uncertainty in the shipping industry. While the shipping industry is focusing on
the sulfur cap, the greatest challenge it has likely ever faced is the need to find the
effective means of decarbonizing in line with global commitments. The speed of the
required transition along with the relative difficulty of technological options vis-avis other sectors of the economy makes this a particularly demanding endeavor.
A number of government-led initiatives indicate a growing awareness of the
shipping challenge, while initiatives at the level of industry and companies suggest
a new reckoning of corporate responsibility. The International Maritime Organization will have a critical role to play in determining the right approach for
decarbonization policy. Market-based mechanisms could potentially play an important role though they are still far from the center of the debate. They can incentivize
the low carbon transition, spurring innovation across CO 2 emissions options and
providing needed funding both for innovation and supporting developing economies
address the heightened burdens of the transition. They are likely however to be one
of many measures, regulations, and initiatives needed for the task. Scaling up
financial resources and investments will also be an important enabler. This is a
role that can be undertaken by regional and national development banks, e.g., the
European Investment Bank (EIB) and ING signed an agreement to support the
European shipping market with 300 million worth of green investment. Green
bonds are another potential instrument for large infrastructural investments.
Enhancing the sustainability of the maritime transport will require a multisector
approach involving governments, transport industry, financial institutions, academia, and civil society. The inherently international nature of maritime transport
would seem to make it especially suited for global challenges, but it is also a
potential weakness in that most governance institutions and their means of enforcing
law and regulation are national in nature. Besides the ambitious goals of the
European Green Deal and the European Climate Law of achieving climate neutrality
by 2050 in alignment with the Agenda 2030 and IMO regulation, there is a lack of
depth in the individual targets that need to be met by all parties that can conrtribute to
the low carbon transition. Shipping industry, as well as other sectors, needs to be
specifically mentioned and targeted in the short-medium-long term in these agendas;
otherwise, the overarching goal of reducing GHG by 2050 will not be achieved.
Furthermore, financial mechanisms that will be essential for climate neutrality
achievement need to be explicitly stated, while maritime transport emissions should
be included in the EU ETS if the IMO doesn’t take effective action by 2021.
168
A. Papandreou et al.