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Environmental Regulations in Shipping: Policies Leaning Towards Scrubbers Entail Important Penalties

Abstract

Emission regulations for Sulphur oxides (SOx) and nitrogen oxides (NOx) is motivated by health- and other environmental objectives, based in local and regional settings, while global warming concerns motivate policies for carbon dioxide (CO2). We point out that the direction chosen by the International Maritime Organization (IMO) – to tighten SOx and NOx limits carries important risks. The first is that extending regulations and costly responses from a regional near-coast context in the existing emission control areas (ECA) in North America and North Europe to a global scheme including the large oceans gives negligible or negative impact. The second is that scrubbing and tuning becomes a dominant response, due to its low abatement cost when the sensible approach of emission control areas ‘globalize’. Third, the adoption of these end-of-pipe solutions carry the risk of deflecting important development of clean fuels and other promising technological options. We point out that policies more careful about the difference between local environmental benefits and greenhouse gas mitigation will have lower costs and serve local and global concerns better.

Category

Academic lecture

Client

  • Research Council of Norway (RCN) / 237917

Language

English

Author(s)

  • Elizabeth Lindstad
  • Gunnar Eskeland

Affiliation

  • SINTEF Ocean / Energi og transport
  • Norwegian School of Economics

Presented at

IAEE International Conference 2016

Place

Bergen

Date

19.06.2016 - 22.06.2016

Organizer

Norges Handelshøyskole

Year

2016

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