The possibility of introducing zero carbon emission shipping - a market based perspective

Abstract

Shipping is a vital part of international trade and currently one of the most environmentally friendly modes existing today. Nevertheless, with the growth of the world economy it is projected that the demand for seaborne transport will increase. This will lead to a significantly higher contribution of CO2 emissions from shipping if business as usual (BAU) continues without change. The aim of this study is to evaluate the possibility of introducing zero carbon emission shipping under the prevailing market conditions. The findings in this study are based on semi-structured interviews with various actors operating within and around the liner shipping segment (shipping companies, shippers, researchers and other actors). There is an apparent need for a global regulatory framework within shipping regarding CO2 emissions, as market forces alone will not bring about radical change towards decarbonisation. The study reveals a deadlock on the market with a lack of comprehension, a low level of integration and limited transparency which hinders the decarbonisation of the shipping industry. With an increased transparency it would be possible to introduce a zero carbon emission transport service, a radical alternative. Consequently, it will enable the industry to be in a better position to reach the climate targets set in the Paris Agreement, even if seaborne trade continues to grow.