The clean shipping concept emerged in a bid to make maritime transportation green and environmentally friendly. This mandate is being accomplished through improved conducts, actions and technology in the maritime industry. One of such measures was the creation of the Sulphur Emission Control Areas (SECA) in 2005 and 2012 to reduce the rate of sulphur emissions from shipping. Sustainable growth—an EU 2020 priority—is strategically linked to the SECA regulation in that it promotes resource efficiency, greener environment and a competitive economy.
Thus, the International Maritime Organisation (IMO) and, as adopted by the European Parliament (EP), SECA regulation stipulated that from 2015 all ships in SECA are under the obligation to use low sulphur marine fuel that must not exceed 0.1% (IMO, 2011). This regulation has incited rigorous arguments on the economic disadvantage it would subject affected maritime stakeholders who are made to comply with stringent regulation their counterparts in non-SECA are not subjected to.
Two years of 0.1% sulphur regulations have witnessed many changes in the maritime industry and most of the first responses were realised with vessels that ply along the Baltic Sea. This work presents an account of European maritime industry’s approaches towards SECA regulations and the stakeholders’ thoughts on the economic impact of SECA. This contribution brings a clearer picture to the status quo as well as highlighting a needed future focus.
Alcamo, J.; Amann, M.; Hettelingh, J. P.; Holmberg, M.; Hordijk, L.; Kämäri, J.; Kauppi, L.; Kauppi, P.; Kornai, G. & Mäkelä, A. (1987), ‘Acidification in Europe: a simulation model for evaluating control strategies,’ Ambio, vol. 16, no. 5, pp. 232–245.
Atari, S. & Prause, G. (2017, forthcoming), ‘Risk assessment of emission abatement technologies for clean shipping,’ in Proceedings of the 17th International Conference “Reliability and Statistics in Transportation and Communication” (RelSTat2017 Conference), Riga.
Bergqvist, R.; Turesson, M. & Weddmark, A. (2015), ‘Sulphur emission control areas and transport strategies—the case of Sweden and the forest industry,’ European Transport Research Review, vol. 7, no. 2, pp. 1–15. https://doi.org/10.1007/s12544-015-0161-9
Breitzmann, K. H.; Möller, M. & Wenske, C. (2013), ‘Baltic maritime transport, its structure, competitive situation and economic weight,’ in K. Breitzmann & M. Hytti (eds.) Pan-Baltic Manual of Best Practices on Clean Shipping and Port Operations, Turku: UBC Environment and Sustainable Development Secretariat.
Brynolf, S.; Magnusson, M.; Fridell, E. & Andersson, K. (2014), ‘Compliance possibilities for the future ECA regulations through the use of abatement technologies or change of fuels,’ Transportation Research Part D: Transport and Environment, vol. 28, pp. 6–18. https://doi.org/10.1016/j.trd.2013.12.001
Cofala, J.; Amann, M.; Heyes, C.; Wagner, F.; Klimont, Z.; Posch, M. & Stavrakaki, A. (2007), Analysis of policy measures to reduce ship emissions in the context of the revision of the national emissions ceilings directive, Final Report, IIASA Contract 06-107, Laxenburg: International Institute for Applied Systems Analysis.
COMPASS (2010), The COMPetitiveness of EuropeAn Short sea freight Shipping compared with road and rail transport, Final Report, European Commission DG Environment Transport & Mobility Leuven, 18 August 2010.
Concawe (2006), Techno-economic analysis of the impact of the reduction of sulphur content of residual marine fuels in Europe, Concawe Report 2/06, Brussels.
Concawe (2013), Oil refining in the EU in 2020, with perspectives to 2030. The oil companies’ European association for Environment, Health and Safety in refining and distribution, Concawe Report 1/13R, Brussels.
Corbett, J. (2007), ‘Mortality from ship emissions: A global assessment,’ Environmental Science and Technology, vol. 41, no. 24, pp. 8512–8518. https://doi.org/10.1021/es071686z
Corbett, J. J. & Farrell, A. (2002), ‘Mitigating air pollution impacts of passenger ferries,’ Transportation Research Part D: Transport and Environment, vol. 7, no. 3, pp. 197–211. https://doi.org/10.1016/S1361-9209(01)00019-0
Dacin, M. T.; Goodstein, J. & Scott, W. R. (2002), ‘Institutional theory and institutional change: Introduction to the special research forum,’ Academy of Management Journal, vol. 45, no. 1, pp. 45–56. https://doi.org/10.5465/AMJ.2002.6283388
Daduna, J.; Hunke, K. & Prause, G. (2012), ‘Analysis of short sea shipping-based logistics corridors in the Baltic Sea region,’ Journal of Shipping and Ocean Engineering, vol. 2, no. 5, pp. 304–319.
Daduna, J. & Prause, G. (2016), ‘The Baltic Sea as a maritime highway in international multimodal transport,’ in Proceedings of the International Conference on Operations Research OR 2015: Optimal Decisions and Big Data”, 1–4 September 2015, Vienna (X−X), Berlin: Springer-Verlag.
DiMaggio, P. & Powell, W. (1983), ‘The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields,’ American Sociological Review, vol. 48, no. 2, pp. 147–160. https://doi.org/10.2307/2095101
Easterby-Smith, M.; Thorpe, R. & Jackson, P. (2012), Management Research, 4th ed., Thousand Oaks & London: SAGE Publications.
Ecofys (2015), Potential for shore side electricity in Europe, Ecofys Final Report, Commissioned by European Commision DG Clima, Utrecht, Netherlands.
Gardberg, N. A. & Fombrun, C. J. (2006), ‘Corporate citizenship: Creating intangible assets across institutional environments,’ Academy of Management Review, vol. 31, no. 2, pp. 329–346. https://doi.org/10.5465/AMR.2006.20208684
Gros, D. & Roth, F. (2012), The Europe 2020 Strategy: Can it maintain the EU’s competitiveness in the world? Brussels: Centre for European Policy Studies (CEPS).
Holmgren, J.; Nikopoulou, Z.; Ramstedt, L. & Woxenius, J. (2014), ‘Modelling modal choice effects of regulation on low-sulphur marine fuels in Northern Europe,’ Transportation Research Part D: Transport and Environment, vol. 28, pp. 62–73. https://doi.org/10.1016/j.trd.2013.12.009
IMO (2008), Revised MARPOL Annex VI: Regulations for the prevention of air pollution from ships and NOx technical code, London: IMO Marine Environmental Protection Committee (MEPC).
IMO (2009), Prevention of air pollution from ships, Second IMO GHG Study 2009. Update of the 2000 IMO GHG Study Final report covering Phase 1 and Phase 2: noted by Secretariat (MEPC 59/INF.10), London: IMO Marine Environmental Protection Committee (MEPC).
IMO (2015), Guidance on the application of regulation 13 of MARPOL annex VI tier III requirements to dual fuel and gas-fuelled engines. MEPC.1/Circ.854, London: IMO Marine Environmental Protection Committee (MEPC).
Jiang, L.; Kronbak, J. & Christensen, L. P. (2014), ‘The costs and benefits of sulphur reduction measures: Sulphur scrubbers versus marine gas oil,’ Transportation Research Part D, vol. 28, pp. 19–27. https://doi.org/10.1016/j.trd.2013.12.005
Kerlinger, F. (1986), Foundations of Behavioral Research, 3rd ed., New York: CBS College Publishing.
Korhonen, J.; Pätäri, S.; Toppinen, A. & Tuppura, A. (2015), ‘The role of environmental regulation in the future competitiveness of the pulp and paper industry: the case of the sulphur emissions directive in Northern Europe,’ Journal of Cleaner Production, vol. 108, pp. 864–872. https://doi.org/10.1016/j.jclepro.2015.06.003
Kostova, T. & Roth, K. (2002), ‘Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects,’ Academy of Management Journal, vol. 45, no. 1, pp. 215–233. https://doi.org/10.2307/3069293
Leary, Z. (2009), The Essential Guide to Doing Your Research Project, Los Angeles & London: SAGE Publications.
Martin, J. & Frost, P. (1996), ‘Organizational culture war games: a struggle for intellectual dominance,’ in S. R. Clegg, C. Hardy & W. R. Nord (eds.) Handbook of Organization Studies, London: SAGE Publications.
Martin, R. & Sunley, P. (1998), ‘Slow convergence? The new endogenous growth theory and regional development,’ Economic Geography, vol. 74, no. 3, pp. 201–227. https://doi.org/10.2307/144374
Mellqvist, J. (2016), SOx Compliance Monitoring, EnviSuM Partner Meeting, 26 October 2016, Copenhagen.
Mendenhall, W. & Sincich, T. (1989), A Second Course in Business Statistics: Regression Analysis, Basingstoke: Macmillan Publishing.
Meyer, J. W. (2008), ‘Reflections on institutional theories of organizations,’ The Sage Handbook of Organizational Institutionalism, London & Thousand Oaks: SAGE Publications, pp. 790–811. https://doi.org/10.4135/9781849200387.n35
Meyer, J. W. & Rowan, B. (1977), ‘Institutionalized organizations: Formal structure as myth and ceremony,’ American Journal of Sociology, vol. 83, no. 2, pp. 340–363. https://doi.org/10.1086/226550
Nabielek, K.; Hamers, D. & Evers, D. (2016), ‘Smart, green and inclusive urban growth: visualising recent developments in European cities,’ In REAL CORP 2016–SMART ME UP! How to become and how to stay a Smart City, and does this improve quality of life? Proceedings of 21st International Conference on Urban Planning, Regional Development and Information Society, CORP: Competence Center of Urban and Regional Planning, pp. 953–957.
Notteboom, T. (2010), ‘The impact of low sulphur fuel requirements in shipping on the competitiveness of roro shipping in Northern Europe,’ WMU Journal of Maritime Affairs, vol. 10, no. 1, pp. 63–95. https://doi.org/10.1007/s13437-010-0001-7
NSF (2008), Clean Shipping: Towards an integrated approach of sustainable shipping, Utrecht: North Sea Foundation.
Nugraha, F. 2009. Effective implementation of emission control area towards cleaner shipping operations: focusing on sulphur oxides (SOx) emission reduction, World Maritime University Dissertations, 186.
Olaniyi, E. O. & Prause, G. K. (2016), ‘Baltic-Russian innovation cooperation in the context of EU Eastern Partnership,’ in T. Kerikmäe & A. Chochia (eds.) Political and Legal Perspectives of the EU Eastern Partnership Policy, Cham: Springer International Publishing, pp. 257–279.
Olaniyi, E. O. & Viirmäe, M. (2016), ‘The economic impact of environmental regulations on a maritime fuel production company,’ Research in Economics and Business: Central and Eastern Europe, vol. 8, no. 2, pp. 58–84.
Panagakos, G. P.; Stamatopoulou, E. V. & Psaraftis, H. N. (2014), ‘The possible designation of the Mediterranean Sea as a SECA: A case study,’ Transportation Research Part D: Transport and Environment, vol. 28, pp. 74–90. https://doi.org/10.1016/j.trd.2013.12.010
Peters, B. G. (2000), Institutional Theory: Problems and Prospects, Political Science Series, Dissertation of Department of Political Science, Institute for Advanced Studies (IHS).
Prause, G. (2014a), ‘Smart specialization and EU eastern innovation cooperation: a conceptual approach,’ Baltic Journal of European Studies, vol. 4, no. 1, pp. 3−19. https://doi.org/10.2478/bjes-2014-0001
Prause, G. (2014b), ‘Sustainable development of logistics clusters in green transport corridors,’ Journal of Security and Sustainability Issues, vol. 4, no. 1, pp. 59−68. https://doi.org/10.9770/jssi.2014.4.1(5)
Prause, G. & Hunke, K. (2014), ‘Sustainable entrepreneurship along green corridors,’ Journal of Entrepreneurship and Sustainability Issues, vol. 1, no. 3, pp. 124−133. https://doi.org/10.9770/jssi.2014.1.3(1)
Stipa, T. (2013), ‘Clean shipping current,’ in K. Breitzmann & M. Hytti (eds.) Pan-Baltic Manual of Best Practices on Clean Shipping and Port Operations, Turku: UBC Environment and Sustainable Development Secretariat.
Tolbert, P. S. & Zucker, L. G. (1983), ‘Institutional sources of change in the formal structure of organizations: The diffusion of civil service reform, 1880–1935,’ Administrative Science Quarterly, pp. 22–39. https://doi.org/10.2307/2392383
Wiśnicki, B.; Czermański, E.; Droździecki, S.; Matczak, M. & Spangenberg, E. (2014), Sulphur Regulation–technology solutions and economic consequences for the Baltic Sea Region shipping market, Gdansk: Institute of Maritime Transport and Seaborne Trade, University of Gdańsk.