The Short-Term Cost of Greening the Global Fleet

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

Decarbonizing maritime transport is among the top priorities of regulators and continuously attracts significant research attention. However, the cost of renewing and greening the fleet has not been explored in detail. To address this gap, the paper provided a bottom-to-top estimation of the financial need associated with decarbonizing the global shipping fleet for the next 5 years, i.e., until 2026. By developing a model focusing on the main asset classes, the paper approximated the expenditure implied in the short-term fleet renewal (newbuilding and vessel demolition) as well as the expenditure linked to retrofitting the existing fleet. The results indicated an aggregate financial need of USD 317 billion until 2026. Thereof, USD 235 billion are associated with building new ships, while USD 114 billion are allocated to retrofitting. Furthermore, proceeds of USD 33 billion can be generated via demolition sales of old tonnage, reducing the total financial burden. The results entail important policy implications, as they document the monetary impact on investors, lenders, and shipping companies regarding distinct segments of the fleet. Considering the declining overall supply of capital towards shipping, the given results provide a transparent account of the absolute financial implications of decarbonization policies.
Original languageEnglish
Article number9439
JournalSustainability
Volume13
Issue number16
Number of pages31
ISSN2071-1050
DOIs
Publication statusPublished - 08.2021
Externally publishedYes

Bibliographical note

Funding Information:
Author Contributions: Conceptualization, O.S.; methodology, O.S.; formal analysis, N.B.; investigation, N.B.; resources, O.S.; data curation, N.B.; writing—original draft preparation, N.B.; supervision, O.S.; funding acquisition, O.S. Both authors have read and agreed to the published version of the manuscript Funding: This research was funded by SKILLSEA project, grant number Erasmus+ programme, 2018–3387/001-001, project number 601186, as well as funded by the Interreg North Sea Europe programme of the European Regional Development Fund (ERDF), grant 38-2-6-19 WASP.

Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.

    Research areas

  • Management studies - sustainable finance, green logistics, shipping, decarbonization, ship finance, retrofit, green shipping, cost of compliance

DOI

Recently viewed

Publications

  1. Influence of cerium on the formation of micro-galvanic corrosion elements of AZ91
  2. Investigation on the Microstructure and Mechanical Properties of Mg–Gd–Nd Ternary Alloys
  3. Observer Strategies for Virtual Sensing of Embroidered Metal-Polymer Heater Structure
  4. Long-Term Abandonment of Forest Management Has a Strong Impact on Tree Morphology and Wood Volume Allocation Pattern of European Beech (Fagus Sylvatica L.)
  5. The knowledge transfer potential of online data pools on nature-based solutions
  6. Microstructure and mechanical properties of large-scale Mg-Gd-Y-Zn-Mn alloys prepared through semi-continuous casting
  7. Dynamische Bestandsdimensionierung
  8. Diversity and spatio-temporal dynamics of dead wood in a temperate near-natural beech forest (Fagus sylvatica)
  9. More than only skin deep: Appearance self-concept predicts most of secondary school students’ self-esteem
  10. Rapid upwards spread of non-native plants in mountains across continents
  11. Forgetting fire
  12. The impact of (social) anchors on Prospect Theory's value function
  13. Approaching bolt load retention behaviour of AS41 through compliance and creep deformation
  14. Effect of the gap width in AZ31 magnesium alloy joints obtained by friction stir welding
  15. Lagrangian perspectives on turbulent superstructures in Rayleigh-Bénard convection
  16. Effects of preschoolers' storybook exposure and literacy environments on lower level and higher level language skills
  17. Verification of measuring the bearing clearance using kurtosis, recurrences and neural networks and comparison of these approaches
  18. Experimental investigation of temperature distribution during wire-based laser metal deposition of the Al-Mg alloy 5087
  19. The predictive chameleon
  20. Simulation of the quench sensitivity of the aluminum alloy 6082
  21. CoLab
  22. On the approximation of transport phenomena
  23. Numerical approach for the evaluation of seam welding criteria in extrusion processes
  24. Understanding of capacity in 3rd grade
  25. Global decoupling of functional and phylogenetic diversity in plant communities
  26. I'm lonely, can't you tell?
  27. The valuation of ecosystem services
  28. Generalising IRT to Discriminate Between Examinees
  29. Knowledge Graph Question Answering Leaderboard
  30. Effects of grade retention on achievement and self-concept in science and mathematics
  31. Mindfulness and cognitive-behavioral strategies for psychological detachment
  32. Multimodal algebra learning
  33. Valuing beaches for beauty and recreation only? Uncovering perception bias through a hashtag analysis
  34. Sunspot equilibria in a monetary real business cycle model
  35. Freie Berufe im Mikrozensus II - Einkommen und Einkommensverteilung
  36. Three-dimensional microstructural analysis of Mg-Al-Zn alloys by synchrotron-radiation-based microtomography
  37. Statistical analysis
  38. Reliability and validity of the self-report version of the Strengths and Difficulties Questionnaire (SDQ) in primary school children
  39. Design of flat slabs for punching - European and North American practices
  40. Towards 3D Process Simulation for In Situ Hybridization of Fiber-Metal-Laminates (FML)
  41. Financing behavior in new ventures - Evidence from Germany
  42. Patterns of entrepreneurial career development
  43. Determination of rutin in green tea infusions using square-wave voltammetry with a rigid carbon-polyurethane composite electrode
  44. Compressive strength and hot deformation behavior of TX32 magnesium alloy with 0.4% Al and 0.4% Si additions
  45. Relations between idle time, exhaustion, and engagement at work
  46. Credit Constraints and Margins of Import
  47. An Adaptive Lyapunovs Internal PID Regulator in Automotive Applications