13.2.5 Sustainable Shipping and Ports
Natural challenges related to maritime transport are twofold, to be specific the
impacts of maritime transport on the environment (e.g. contamination, CO 2 emanations) and on the other hand the natural effect on maritime transport (e.g. climate
change, extreme weather events). Thus, maritime transport and ports play a critical
role in addressing the sustainability challenges in international trade, providing
market access and linking communities. The European Union has put into force a
number of directives and regulations aiming to incentivize port and shipping companies to comply with environmental standards. The new regulatory challenge posed
by the sulphur cap in 2020 has generated substantial uncertainty in the shipping
industry (IMO 2020). While the shipping industry is focusing on the sulphur 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-a-vis other sectors of
the economy makes this a particularly demanding endeavour.
Market-based mechanisms (e.g. emissions cap, emissions trading system) could
potentially enact the decarbonizing commitments though they are still far from the
centre of the debate. They can motivate the low carbon transition, triggering
innovation across CO 2 emission options and providing needed funding both for
innovation and supporting developing economies address the burdens of the transition. They are likely however to be one of the many measures, regulations and
initiatives needed for the task. Accelerating 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). Another potential
instrument for infrastructural investments is the green bonds.
Chapter 10 provides a brief overview of the marine transport industry, its role and
relevance in sustainable development and the kinds of changes that are needed for
shipping to be sustainable. It focuses primarily on some of the environmental
dimensions of sustainable shipping, although it acknowledges that the effort of
sustainable shipping needs to consider several additional aspects to achieve the
Sustainable Development Goals. Sustainability is a very broad and sometimes
ambiguous concept, but it captures societal values and shapes our vision. Enhancing
the sustainability of the maritime transport will require a multi-sector approach
involving governments, transport industry, financial institutions, academia and
civil society. The inherently international nature of maritime transport seems to
make it ideal for global challenges, but it is also a potential weakness given that
most governance institutions and their means of enforcing law and regulation are
national in nature. 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.
Chapter 11 focuses on the role of ports in implementing CO 2 regulations in
international and European waters. The IMO (2020) regulation, bringing the sulphur
cap in fuel oil for ships down from 3.50% to 0.50%, is anticipated to bring critical
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P. Koundouri and L. Papadaki
Natural challenges related to maritime transport are twofold, to be specific the
impacts of maritime transport on the environment (e.g. contamination, CO 2 emanations) and on the other hand the natural effect on maritime transport (e.g. climate
change, extreme weather events). Thus, maritime transport and ports play a critical
role in addressing the sustainability challenges in international trade, providing
market access and linking communities. The European Union has put into force a
number of directives and regulations aiming to incentivize port and shipping companies to comply with environmental standards. The new regulatory challenge posed
by the sulphur cap in 2020 has generated substantial uncertainty in the shipping
industry (IMO 2020). While the shipping industry is focusing on the sulphur 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-a-vis other sectors of
the economy makes this a particularly demanding endeavour.
Market-based mechanisms (e.g. emissions cap, emissions trading system) could
potentially enact the decarbonizing commitments though they are still far from the
centre of the debate. They can motivate the low carbon transition, triggering
innovation across CO 2 emission options and providing needed funding both for
innovation and supporting developing economies address the burdens of the transition. They are likely however to be one of the many measures, regulations and
initiatives needed for the task. Accelerating 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). Another potential
instrument for infrastructural investments is the green bonds.
Chapter 10 provides a brief overview of the marine transport industry, its role and
relevance in sustainable development and the kinds of changes that are needed for
shipping to be sustainable. It focuses primarily on some of the environmental
dimensions of sustainable shipping, although it acknowledges that the effort of
sustainable shipping needs to consider several additional aspects to achieve the
Sustainable Development Goals. Sustainability is a very broad and sometimes
ambiguous concept, but it captures societal values and shapes our vision. Enhancing
the sustainability of the maritime transport will require a multi-sector approach
involving governments, transport industry, financial institutions, academia and
civil society. The inherently international nature of maritime transport seems to
make it ideal for global challenges, but it is also a potential weakness given that
most governance institutions and their means of enforcing law and regulation are
national in nature. 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.
Chapter 11 focuses on the role of ports in implementing CO 2 regulations in
international and European waters. The IMO (2020) regulation, bringing the sulphur
cap in fuel oil for ships down from 3.50% to 0.50%, is anticipated to bring critical
252
P. Koundouri and L. Papadaki