Date of Award
Master of Science in Maritime Affairs
Shipping Management & Logistics
IMO uses three pillar strategy for air emission reduction including, technical, operational and market-based measures (MBM). The dissertation briefly describes the maritime regulatory framework for reduction of emissions. An overview on air emissions caused by the shipping sector is analysed. A brief look is taken on the need and methodology for inventory management of air emissions. A comparison between the market-based measures, operational measures, carbon tax and abatement measures for averting air emissions of carbon equivalent is made. The author has examined the abatement measures available to shipowners. This section also investigates the response of shipowners to different possible measures. There is a social cost which a company shall bear for the sustainability or go for abatement measures or MBM. By choosing correct abatement measures, shipowners can avoid carbon tax and avoid externality which ultimately will add to their financial gains. Emission scenarios are collated and evaluated to know how much shipping contribute to future climate change. The purpose of these scenarios is not for future predictions but to explore the scientific and real-time implications. Methanol has emerged as a strong alternative fuel option because of stringent air emissions regulations. A case study on a compliance cost for M.V. Stena Germanica demonstrated to show the applicability of the framework. The environmental and economic benefit is calculated to see the feasibility of the project, and then the result is compared with the different measures available to shipowners. The conclusion gives a holistic view of the decision framework for the shipowners to decide whether to comply with the abatement measures or not. The case study proves that in the long term by complying with abatement measures shipowners will avoid carbon tax and will have social benefits and financial benefit.