Rehmatulla, N; Smith, T; (2012) Implementation Barriers to Low Carbon Shipping. Presented at: Low Carbon Shipping Conference 2012, Newcastle.

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Abstract

Energy costs represent around 60-70% of operating costs of a ship and with the fuel price soaring to record levels, energy efficiency is once again becoming top of the agenda/priority for many shipping companies. Numerous cost effective energy efficient options/measures (technologies for new and existing ships and operations) have been identified for improving energy efficiency of ships. Analysis from industry leading experts and recognized bodies e.g. Faber et al. (2009), Buhaug et al. (2009), Det Norske Veritas (2009), IMO (2010), has so far shown substantial (e.g. up to 30%) unrealised abatement potential using options that often appear to be cost-negative at current fuel prices. Apart from the shortcomings of the analysis (e.g. risk representation, heterogeneity & hidden costs) failure to realise this potential (the energy efficiency gap) could be attributable to various market barriers and failures. This paper draws on findings of a survey conducted of shipping companies around the issue of barriers in shipping operations and analysis undertaken with the global shipping system model (GloTraM). These findings are used for the analysis of barriers and failures that have been discussed in other sectors and are analysed in the context of the shipping industry.

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