The analysis presented in this report draws on a combination of economic principles and a synthesis of publicly available data and evidence from shipping and other sectors and countries. It sets out the economic case for the UK introducing (a) targets to reduce emissions of greenhouse gases (GHGs) and emissions to air of pollutants from UK shipping; and, (b) economic instruments to support the transition to zero emission shipping. It then considers two relevant interventions that already exist with the aim of reducing emissions – the Nitrogen Oxides (NOx) Fund in Norway and the Renewable Transport Fuel Obligation (RTFO) in the UK – and considers the pros and cons of those measures
