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Reducing Sulphur Emissions from Ships: The Impact of International Regulation

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  • ITF

Abstract

This study assesses the impact of international sulphur emission reduction regulations on global shipping. Ships emit a large amount of sulphur oxides that have significant health impacts. To mitigate these, international regulations cap the sulphur content of ship fuel. In certain parts of the world, emission control areas (ECAs) with even stricter standards have been established. In the emission control areas, new requirements introduced in 2015 limit the sulphur content of ship fuel to 0.10%. A new, lower global sulphur cap of 0.50% is planned for 2020. This report examines the 2015 cap effects on shipping and the potential effects of the new requirements foreseen for 2020. It assesses the cost increase for maritime transport associated with the sulphur caps, impacts on shipping operations as well as on other transport modes, and on the environment. The report also highlights policy gaps and challenges for the enforcement of sulphur emissions regulation for shipping.

Suggested Citation

  • Itf, 2016. "Reducing Sulphur Emissions from Ships: The Impact of International Regulation," International Transport Forum Policy Papers 18, OECD Publishing.
    • Handle: RePEc:oec:itfaac:18-en
    DOI: 10.1787/5jlwvz8mqq9s-en
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    Cited by:

    1. Tan, Zhijia & Zhang, Ming & Shao, Shuai & Liang, Jinpeng & Sheng, Dian, 2022. "Evasion strategy for a coastal cargo ship with unpunctual arrival penalty under sulfur emission regulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    2. Li, Lingyue & Gao, Suixiang & Yang, Wenguo & Xiong, Xing, 2021. "Assessment and improvement of EPA's penalty policy: From the perspective of governments' and ships' behaviors," Transport Policy, Elsevier, vol. 104(C), pages 18-28.
    3. Laura Recuero Virto, 2017. "A preliminary assessment of indicators for SDG 14 on " Oceans "," Post-Print hal-01639008, HAL.
    4. Eunice Omolola Olaniyi & Yassine Bakkar & Gunnar Prause, 2019. "Entrepreneurial compliance opportunities for maritime fuel producers," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1550-1565, June.
    5. Kian-Guan Lim & Michelle Lim, 2020. "Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-25, December.
    6. Olaniyi Eunice Omolola, 2017. "Towards EU 2020: An Outlook of SECA Regulations Implementation in the BSR," TalTech Journal of European Studies, Sciendo, vol. 7(2), pages 182-207, October.
    7. Zis, Thalis P.V., 2021. "A game theoretic approach on improving sulphur compliance," Transport Policy, Elsevier, vol. 114(C), pages 127-137.
    8. Eunice Omolola Olaniyi & Marti Viirmäe, 2016. "The Economic Impact of Environmental Regulations on a Maritime Fuel Production Company," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 8(2).
    9. Eunice Omolola Olaniyi & Gunnar Prause, 2020. "A Comparative Study on SECA Compliance Options for Maritime Fuel Producers," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(2), pages 282-294, July.
    10. Gunnar Prause & Gunnar Prause & Tarmo Tuisk & Eunice Omolola Olaniyi, 2019. "Between sustainability, social cohesion and security. Regional development in North-Eastern Estonia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1235-1254, March.

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