Greenhouse Gas Mitigation Strategies for Container Shipping Industry

Abstract

With the onset of the first ever Greenhouse Gas (GHG) regulation for ships by the International Maritime Organisation (IMO) in 2011, the container shipping industry requires the combined use of technical and operational emissions reduction measures to improve the environmental performance of its vessels. Studies show that most existing measures are cost effective with a range of emissions reduction potential. However, the level of implementation is not depicted and the potential of the measures may be over-estimated. An evaluation of the emissions reduction measures is conducted through the examination of 3 factors, namely level of implementation, emissions reduction potential and cost effectiveness. Strategies to overcome the critical barriers of implementation are suggested in this study. Lastly, recommendations for companies with regards to GHG issues are made. The strong link between cost effectiveness and level of implementation is highlighted in this study. It is also shown that there is immense potential to reduce emissions from ships given the availability of measures with significant reduction potential. However, the top barriers of implementation, namely cost of measure and lack of information, need to be addressed for a higher level of adoption. This report serves as the first step to map strategy for managing GHG in the shipping industry. The importance of cost effectiveness in decision making from a ship operators perspective prompts the adoption of measures that are the most cost effective first before measures with high emissions reduction potential. It is prudent for shipping companies to adopt a more environmentally friendly operation as green is the way forward in the shipping industry.