Costs and benefits of LNG economic development in the Baltic and Arctic Regions

Global warming is becoming increasingly evident. However, rising temperatures also offer new economic opportunities, such as new maritime routes in previously ice-locked waters. Valuable minerals in the Arctic region are also becoming more accessible. Maritime stakeholders are therefore seeking to operate in this remote region safely and efficiently. Accommodating these developments from a regulatory standpoint, IMO has amended the International Convention for the Prevention of Pollution from Ships (MARPOL) to include Chapter 9 of Annex I, prohibiting the use of heavy-grade marine fuels as well as heavy-duty oils as cargo carriage in the seas beyond 60th parallel south. In addition, IMO recently adopted the International Code for Ships Operating in Polar Waters (PCD). This paper seeks to analyse the economic impact of the use of liquefied natural gas (LNG) as an alternative marine fuel to reduce exhaust emissions and the risk of oil spill in the Arctic habitats. The paper focuses on the macroeconomic benefits of using LNG in Arctic shipping, including those related to supply security, external health benefits and environmental impacts. The paper offers a cost benefit analyse and a set of recommendations in relation to the use of LNG in the Arctic shipping

Compliant strategy for shipowners: A decision framework for air emission reduction measures

The main aim of the paper is to develop a decision framework for ship owners to comply with the emission reduction regulations. Various measures available to ship owners will be analysed. This paper will discuss the need of Carbon Tax or Market Based Measures in the maritime market. A comparison between the market-based measures, operational measures, carbon tax and abatement measures for averting air emissions of carbon equivalent will be made. An overview of air emissions caused by the shipping sector will be given along with the methods to keep records of air emissions. There are no uniform standardised methods available for keeping the records of air pollution. A brief description is done on the need and methodology for inventory management of air emissions. Emission scenarios are collated and evaluated to know how much shipping contribute to future climate change. A case study on the compliance cost of complying with the regulations for M.V. Stena Germanica will be demonstrated. The environmental and economic benefit will be evaluated to find the feasibility of the project. The externality will be assessed for the case study before and after fuel switching of Methanol. A cost-benefit analysis will be done with regards to decision making for ship owners. In conclusion, a holistic view of the decision framework for the ship owners is given. The case study will prove that in the long term by complying with abatement measures or alternative fuel ship owners will avoid carbon tax and will have social and financial benefits

Can Market-based Measures Stimulate Investments in Green Technologies for the Abatement of GHG Emissions from Shipping? A Review of Proposed Market-based Measures

In order for the maritime sector to align itself with the targets set by the Paris Agreement, it should reduce its GHG emissions by at least 50% by 2050 compared to 2008 with the ultimate aim to phase them out entirely. It is along these lines that in April 2018 the International Maritime Organisation (IMO) developed a strategy, consisting of a range of potential technical and operational measures to reduce GHG emissions from international shipping, ranking from improvements on ship design to the employment of alternative fuels. In order to stimulate the adoption of these policies, the IMO also considers the implementation of market-based measures (MBM) that will provide additional incentives to shipowners to invest in new technologies and uptake of cleaner fuels. The MBMs analysed in this paper include two different policies proposed by different countries and associations for the abatement of GHG emissions from shipping: a) the International Fund for GHG emissions from ships that includes the imposition of a global levy on marine bunker fuel for all vessels and b) the Maritime Emission Trading System (METS) that requires all maritime companies to buy/sell emission allowances to meet their annual emission reductions targets, setting a cap on global shipping emissions. This paper presents and analyses these two diverse MBMs, highlighting their main advantages and drawbacks. The scope of this paper is to investigate the potential of these MBMs to incentivise investments in new technologies and alternative fuels, both essential for the decarbonisation of the maritime sector

Liquefied Natural Gas as Ship Fuel: A Maltese Regulatory Gap Analysis

With water covering almost three-quarters of the Earth’s surface and by factoring in that the maritime transport industry is holding the comparative advantage in relation to all other means, activities associated with the seas and oceans of our planet are extremely vital for the normal functioning of global trade. Furthermore, evaluating the opportunities of the so-called “Blue Economy” and possibilities for further growth should be at the epicentre of future development plans. Indicative examples -apart from various endeavours of maritime transport- include other sectors, like shipbuilding and repairs, fishing activities and related processes, as well as oil and gas exploration. All these provide significant economic output and facilitate job creation. It is true that the shipping industry contributes to the carriage of vast quantities of cargo and maintains a crucial role in global trade; however, the specific industry is also responsible for significant quantities of greenhouse gas (GHG) emissions. IMO (MEPC) in 2018 adopted an initial strategy on the reduction of GHG emissions from ships. This plan envisages a reduction of CO2 emissions per transport work, at least 40% by 2030, pursuing efforts towards even further reduction by 2050, compared to the 2008 levels. It is imperative for shipping and related industries to investigate and introduce more environmentally friendly (“cleaner”) ways of operation. In the search for these cleaner fuels, it is the responsibility of maritime stakeholders to make available (economically viable) fuel alternatives worldwide. In view of an increasing trend in using Liquefied Natural Gas (LNG) as a marine fuel, setting up regulations and amend national legislation to allow the provision of LNG as a ship fuel in a safe manner, is a first stage which potential service providing countries have to successfully fulfil. The current analysis is focusing on the small island state of Malta, which apart from certain international aspects introduced by the International Maritime Organisation (IMO), it has to abide by European Union’s (EU) regulations and make LNG as a marine fuel available until 2025. Its main aim is to provide ways to cover the identified regulatory gap of the Maltese legislation, relating to ports, ship fuel bunkering and the local gas market

Development of a holistic maritime energy management programme at the postgraduate level: the case of WMU

Energy efficiency in shipping is regarded as one of the most urgent tasks to which the industry needs to respond. According to the 2014 International Maritime Organization’s (IMO) Green-House Gas (GHG) Study, the average respective missions from shipping accounted for approximately 3.1% of annual global CO2 during the period of 2007–2012. Mandatory technical and operational energy-efficiency measures adopted via Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) entered into force on 1 January 2013. It is mandatory to implement the Energy Efficiency Design Index (EEDI) for certain types of new ships, as well as the Ship Energy Efficiency Management Plan (SEEMP) for all ships. In order to support uniform implementation and to promote technology transfer, it is vital to educate and train personnel in Maritime Energy Management (MEM) in all the IMO member states. Notwithstanding, such educational opportunities tend to be limited to technical and vocational levels, and there was no course to educate maritime energy management professionals at postgraduate level until the World Maritime University (WMU) has launched its Master of Science course in the specific field. From the motivations to energy efficiency to modern technology, safety and security, economics, human element, and operations research, the WMU MSc programme is pioneering to foresee the need of higher education for future maritime leaders. This paper proposes an interdisciplinary approach to the course design and development in MEM and discusses the role of education to support the UN’s sustainable development goals (SDGs)

Liquefied Natural Gas as Ship Fuel: A Maltese Regulatory Gap Analysis

With water covering almost three-quarters of the Earth’s surface and by factoring in that the maritime transport industry is holding a comparative advantage in relation to all other means, activities associated with the seas and oceans of our planet are extremely vital for a normal functioning of global trade. Furthermore, evaluating the opportunities of the so-called “Blue Economy” and possibilities for further growth should be at the epicentre of future development plans. Indicative examples - apart from various endeavours of maritime transport - include other sectors, like shipbuilding and repairs, fishing activities and related processes, as well as oil and gas exploration. All these provide a significant economic output and facilitate job creation. It is true that the shipping industry contributes to the carriage of vast quantities of cargo and maintains a crucial role in global trade; however, the specific industry is also responsible for significant quantities of greenhouse gas (GHG) emissions. IMO (MEPC) in 2018 adopted an initial strategy on the reduction of GHG emissions from ships. This plan envisages a reduction of CO2 emissions per transport work, at least 40% by 2030, pursuing efforts towards an even further reduction by 2050, compared to the 2008 levels. It is imperative for shipping and related industries to investigate and introduce more environmentally friendly (“cleaner”) ways of operation. In the search for these cleaner fuels, it is the responsibility of maritime stakeholders to make available (economically viable) fuel alternatives worldwide. In view of an increasing trend in using Liquefied Natural Gas (LNG) as a marine fuel, setting up regulations and amend national legislation to allow the provision of LNG as a ship fuel in a safe manner, is a first stage which potential service providing countries have to successfully fulfil. The current analysis is focusing on the small island state of Malta, which, apart from certain international aspects introduced by the International Maritime Organisation (IMO), it has to abide under European Union’s (EU) regulations, making LNG as a marine fuel available until 2025. Its main aim is to provide ways to cover the identified regulatory gap of the Maltese legislation, relating to ports, ship fuel bunkering, and the local gas market

CR CyberMar as a Solution Path towards Cybersecurity Soundness in Maritime Logistics Domain

Cybersecurity is now considered as one of the main challenges for the maritime sector. At the same time, the maritime transport industry remains one of the most relevant and driving sectors for the global economy in terms of both the number and operations of active companies, and infrastructure and investments, thanks to the policies pushed to attract the latter. Maritime information systems, whether on board ships or in ports, are numerous, built with standard components available on the market and in many cases designed without factoring in well the ever-growing cyber risk. Digital infrastructure has become essential in operating and managing systems critical to the safety and security of shipping and ports. Specifically, Cyber-MAR is focused upon the simulation and emulation of the real world of maritime systems (e.g. Logistics, Supply Chain). This research effort will examine the creation of a federated Cyber Range (CR Cyber-MAR) which will include various platforms and interconnected systems on board a vessel or ashore, in order to allow a hyper-realistic simulation of cyber-attacks and trying to assimilate them into real-life. Then the identified CR Cyber range will be integrated in the Cybersecurity training needs for different levels of operators. The investigation of the discussed topic will essentially use qualitative techniques, analysing data obtained from publications, official and commercial reports, and interviews of a targeted audience