Analysis of the Reduction of Emissions from Ships in Europe

Abstract

An essential part of the world’s energy consumption is facilitated by the burning of fossil fuels or their synthetic derivatives, which result in the emissions of harmful gases in the atmosphere. The maritime industry contributes to the increase in greenhouse gas (GHG) and other detrimental gas emissions. The possibilities of reducing these types of emissions from ships are subject to ongoing research. The International Maritime Organization (IMO) and the European Union cooperate on the development of emission abatement measures and strategies. This thesis aims to calculate the marginal abatement cost of measures that can be taken to reduce the CO2 emissions from maritime transport and to examine their reduction potential. General introduction into the greenhouse gas and other harmful gas emissions is provided in the first chapter, focusing on the existing means of regulation as well. In the second chapter, the methods and strategies employed by the IMO and the European Union are analyzed. Besides, the Marginal Abatement Cost (MAC) curves that are used in the calculations are explained, with additional examples in the literature examined. The European Union (EU) Monitoring, Reporting, and Verification system (MRV; Shipping Regulation 2015/757) is used as a source for reference data. The EU-MRV shipping regulation applies to larger ships over 5000 gross tonnages on all voyages to or from the EU ports. In the third chapter, the estimated CO2 emissions are assessed with regard to the projected increase in freight works by 2050. The used concepts and assumptions are discussed with respect to cost-benefit analysis in the same chapter. Fuel prices and discount rates were handled separately for marginal abatement cost calculations. Besides, 12 different emission abatement measures were examined in detail, and the investment and operational costs were shared. The results are presented while using MAC curves for nine different ship types, which, according to the EU-MRV data, cause 95% emissions in the European ports. Within the last chapter, emissions are estimated by ship type in 2050, once again using the EU-MR data. The sensitivity analysis is conducted for emission reduction potentials for different fuel price scenarios, and potential emission abatement scenarios of the measures are shared. At the end of the thesis, the EU maritime transport emissions are estimated for the abatement scenarios until 2050.

An essential part of the world’s energy consumption is facilitated by the burning of fossil fuels or their synthetic derivatives, which result in the emissions of harmful gases in the atmosphere. The maritime industry contributes to the increase in greenhouse gas (GHG) and other detrimental gas emissions. The possibilities of reducing these types of emissions from ships are subject to ongoing research. The International Maritime Organization (IMO) and the European Union cooperate on the development of emission abatement measures and strategies. This thesis aims to calculate the marginal abatement cost of measures that can be taken to reduce the CO2 emissions from maritime transport and to examine their reduction potential. General introduction into the greenhouse gas and other harmful gas emissions is provided in the first chapter, focusing on the existing means of regulation as well. In the second chapter, the methods and strategies employed by the IMO and the European Union are analyzed. Besides, the Marginal Abatement Cost (MAC) curves that are used in the calculations are explained, with additional examples in the literature examined. The European Union (EU) Monitoring, Reporting, and Verification system (MRV; Shipping Regulation 2015/757) is used as a source for reference data. The EU-MRV shipping regulation applies to larger ships over 5000 gross tonnages on all voyages to or from the EU ports. In the third chapter, the estimated CO2 emissions are assessed with regard to the projected increase in freight works by 2050. The used concepts and assumptions are discussed with respect to cost-benefit analysis in the same chapter. Fuel prices and discount rates were handled separately for marginal abatement cost calculations. Besides, 12 different emission abatement measures were examined in detail, and the investment and operational costs were shared. The results are presented while using MAC curves for nine different ship types, which, according to the EU-MRV data, cause 95% emissions in the European ports. Within the last chapter, emissions are estimated by ship type in 2050, once again using the EU-MR data. The sensitivity analysis is conducted for emission reduction potentials for different fuel price scenarios, and potential emission abatement scenarios of the measures are shared. At the end of the thesis, the EU maritime transport emissions are estimated for the abatement scenarios until 2050.