STI COLLOEGE STA.

MESA

ELECTIVE – 2

Green Shipping

JUANSON, GLENN J.

BSMT – 2 BRAVO

2/0 ROMEO FERRER

ABSTRACT

Seaborne trade displays a consistent

Production increased by 3.8% annually to 10.7 billion tons in 2017, in

accordance with technological advancement. It is expected that it will
quadruple during the next 20 years. (UNCTAD) 2018. The International
Maritime Organization (IMO) is constantly tightening regulations to
steer ships toward a more ecologically friendly and sustainable future.
As a result, both sides are quite interested in the subject of green
shipping. academics and researchers. In this essay, we present a
complete bibliometric study to help readers understand the shifting
research patterns in this field and provide suggestions for future
research. In the transportation industry, the majority of research
focuses on technological controls, operational effectiveness, or GSP
recycling. For the marine industry, theoretical GSP technique and the
underlying idea are still in their infancy. According to the available
data, more research is required to create a GSP design and
recommend technology solutions for reducing pollution with a detailed
evaluation mechanism.

INTRODUCTION

Generally speaking, international shipping is considered the the

fundamental tenet of world commerce and economics the majority of
goods being transported through there are more than 6,000 seaports
worldwide. 70% of the value of world trade. Seaborne Because there
is an ever-growing demand for shipping, the ability of competitive
freight to transport a thing large cargo capacity in a sustainable and
secure manner compared to other forms of transport. in spite of has
an extremely favorable effect on world economic The ecology suffers
from pollution brought on by development. the environment, and is
typically seen as a important source of water and air pollution. NOx,
SOx, and CO2 emissions from exports occur annually. Sources created
by humans account for 15%, 13%, and Only 3% of the air was
determined to be ship-emitted. pollution levels worldwide between
2007 and 2012. Ships Pouring bilge, sewage, or oil into a body of
water, trash into the ocean. changing the ballast water The
environment is affected by invasive species. aquatic life is present.
The Maritime Global IMO, a well-known international authority on
International shipping conventions were adopted. Preventing Ship
Pollution, also referred to as MARPOL. There are now six regulation
annexes in use. avoiding pollution, oil, and dangerous liquids
contaminants like sewage, garbage, and chemicals respectively, ships.
IMO continues to deteriorate. restrictions on the environment.

Literature Review

Definitions of Green Shipping and Eco-Friendly Ships

In order to safeguard the environment from GHGs and other pollutants
that ships discharge into the atmosphere, green shipping is the
practice of transporting people and goods by ship using the least
amount of energy and resources possible. Green shipping must abide
by IMO rules regarding operating conditions related to the
environment from an operational perspective. The details of these
situations are described in various conventions, including MARPOL
73/78, the OPRC-HNS Convention on Oil Pollution Preparedness,
Response, and Cooperation regarding Hazardous and Noxious
Substances, the AFS Convention on Anti-fouling Systems, the BWM
Convention on Ballast Water Management, and the Ship Recycling
Convention on Ship Recycling. These are also mentioned in the GHG
study of the IMO.

In their 2011 study, Lai et al. created a conceptual framework for

assessing green shipping operations as well as a series of hypotheses
outlining the conditions under which shipping companies will behave
sustainably. As a result, the article examined the performance effects
and highlighted the factors that were essential for their acceptance.

In order to examine how greening efforts are related to company

performance in shipping operations, Lun et al. (2015) proposed the
idea of Greening and Performance Relativity (GPR) and employed an
input-output analytical technique. Being environmentally friendly and
running profitable shipping operations go hand in hand, according to
the results of a survey by the Hong Kong shipping industry.

An institutional theory-based conceptual framework was employed in

Yang's 2017 study to empirically evaluate how institutional pressures,
internal green practices, and external green collaborations affected
green performance. According to Yang (2017), the primary institutional
pressures are coercive, normative, and mimetic, and all internal green
practices, such as green operations and green shipping, as well as
external green collaborations with suppliers, partners, and clients are
green. The SEM's findings show that institutional pressures positively
affect internal green practices, that internal green practices favorably
affect external green collaborations, and that both internal and
external green collaborations favorably affect green performance.
Institutional pressure, however, is not a good indicator of external
green collaborations.

The causes and impacts of sustainable shipping practices were

examined by Yuen et al. (2017) using stakeholder, planned behavior,
and resource dependence theories. The adoption of sustainable
shipping practices is directly influenced by stakeholder pressure,
attitude, and behavioral control, and is indirectly influenced by
commercial performance, according to survey data from the shipping
industry. Additionally, emotion, behavior control, and company
performance are all directly impacted by stakeholder pressure.

In order to execute strategic CSR in shipping, there are several

barriers that Yuen and Lim (2016) want to study, list, and rank. A
survey of 600 shipping companies in Singapore revealed that a lack of
resources, a lack of a strategic vision, a lack of measuring systems,
high regulatory criteria, and a low level of willingness to pay for CCSR
are the biggest barriers to adopting strategic CSR in shipping.

Important Rules for Green Shipping

IMO Regulations

A convention known as MARPOL 73/78 was established to stop

potential ship-related maritime air and water pollution. Since its
adoption in 1978, the convention has undergone constant revision. The
Convention on the Prevention of Pollution by Air Pollutants, which is
listed in Annex VI (IMO, 2016), regulates emissions of sulfur oxide
(SOx), nitrogen oxide (NOx), and volatile organic compounds (VOCs).

The phases of the MARPOL 73/78 regulation are mentioned below.

Step 1: As of July 1, 2010, new NOx-related building regulations in line
with MARPOL 73/78 become applicable to ships with diesel engines of
130 kW or greater. Step 2: New regulations were implemented
beginning in 2011 in an effort to further cut NOx emissions by 15% to
20%. Step 3: Tertiary measures, which became effective in 2016, aim
to cut down on 80% of the present emissions in the region.

Three methods for reducing GHG emissions have been disclosed by

the IMO. The first is the Energy Efficiency Design Index (EEDI), a tool
used to measure the reduction in GHG emissions. The Energy
Efficiency Operational Indicator (EEOI) and Ship Energy Efficiency
Management Plan (SEEMP), both operational GHG reduction
techniques, fall under the second category. Market-based measures
(MBMs), which include the emissions trading system and other
supplemental operational and technological measures like them, fall
under the third category (IMO, 2016).

Changes in IMO Regulations

Environmentally-influenced operating conditions, IMO rules, and

acceptable strategies employed by affiliated parties have all evolved
over time. The following are the main modifications made by MARPOL
73/78 from Annex I to Annex VI: first, the requirements have been
enhanced and the scope of applicability has been increased. The focus
of pollution reduction has shifted in this regard from marine pollution,
which is brought on by oil and other hazardous compounds produced
by ships during operations and berthing, to pollution, which is brought
on by air pollutants (SOx, NOx, etc.) that are harmful to human health.
Second, stricter regulations have been put in place to avoid mishaps.
Prior legislation had demonstrated a willingness to fight maritime
pollution caused by shipping accidents.

Eco-Friendly Vessels in Major Countries: Shipping Companies,

Shipyards, Ports, and Policies

Major Shipyards in Japan

To identify ways to reduce energy consumption and carbon emissions

from ships, Japan is actively investing in research and development
(R&D). In April 2013, the Japanese shipbuilding industry established
the Maritime Innovation Japan Corporation (MIJAC), a collaborative
research platform focused on the R&D of shipping technologies. The
Oshima Shipyard, Shin-Kurushima Dock, Tsuneishi Shipyard, Sano-Yosu
Shipyard, Nihon Yusen, and NK are a few of the investors in MIJAC.
The study largely focuses on ship design, drying technology, ship
operating technology, and technology used to remove hazardous
materials like carbon dioxide that are formed by ships and to utilise
marine energy.

By infusing air into a ship's bottom, Mitsubishi Heavy Industries has

created the Mitsubishi air lubrication system (MALS), which lowers air
friction. According to Mitsubishi Heavy Industries, this method might
reduce GHG emissions by up to 25%. In fact, Sumitomo, Japan, has
installed the air lubricating system on three new Post-Panamax class
grain carriers owned by ADM America.

Chinese shipyards of note

China is working with a variety of relevant organizations to develop

ship-related technologies that are environmentally beneficial. For
instance, a research study on the "Core Technology for Round-Trip
LNG Vessels," one of the 863 initiatives started by Hudong-Zhonghua
Shipbuilding, was finally approved on June 26, 2015, in Beijing, with
the help of the high-tech center of the Ministry of Science and
Technology and many experts. China is currently promoting the
development of ecologically friendly ship technology based on active
LNG. The Chinese COSCO Shipyard Group has been working on the
"Clean Sky" LNG-powered Kamsarmax bulk carrier since 2011. The
largest bauxite production in the world, Kamsar Port in Guinea, West
Africa, commissioned the construction of a bulk carrier of the
Panamax class known as the Kamsarmax. The idea was developed by
the Cosco Shipyard Group in collaboration with businesses like Golden
Union and Lloyd's Register. Thanks to Lloyd's Register's recent
confirmation of the Approval in Principle (AIP), the design will be ready
for building in 2013. Since the Clean Sky vessel has the ability to
employ a dual fuel or medium fuel system with diesel, heavy oil, and
LNG fuels, it is anticipated to significantly cut GHG emissions (Kim,
2015a, Kim, 2015b).

Major Shipyards in Europe

A combined research project to develop eco-friendly maritime

technology has also been formally started by 46 European
shipbuilders, equipment makers, and research institutes from 13
countries, under the direction of the Dutch Damen Group. These
"LeanShips" (low energy and virtually zero emissions ships), a
technical collaboration aiming to save energy and protect the
environment, focus on dependability and efficiency. Zero SOx, NOx,
and particulate matter (PM) emissions from ships are desired, along
with gains in fuel efficiency of up to 25% and CO2 and SOx emission
reductions. One of the marine research projects funded by Horizon
2020, the European Union's framework program for research and
innovation from 2014 to 2020, is the LeanShips project.

Major Shipyards in the U.S.

The Navy's Ship Service Fuel Cell (SSFC) program is one of the most
notable instances of environmentally friendly ships in the US. The
Navy has begun the project with the help of the Office of Naval
Research (ONR) in an effort to lower the fuel budget and create
environmentally friendly power production technologies with the goal
of boosting combat power. Ships' main power source is a 2.5 kW
molten carbonate fuel cell (MCFC) from SSFC. The 434 TEU feeder, a
diesel/electric propulsion ship, has been the subject of a fuel cell
application study by the Maritime Administration (MARAD). It has also
been taken into consideration for usage on a fast ferry by the Water
Transit Authority (WTA) (Kim, 2015a, Kim, 2015b).

Eco-Friendly Vessels in Major Ports

The U.S.
The United States is making efforts to streamline port logistics and
lower GHG emissions. The Environmental Protection Agency (EPA) is
implementing the "Clean Port USA" eco-friendly port plan as well as
the SmartWay Transport Partnership Program. Additionally, as a result
of the Marine Vessel Emission Act of 2007, the EPA revised the Clean
Air Act, requiring ships entering more than 90% of U.S. ports to use
low-sulfur oil with a level of less than 1,000 ppm for both their main
and auxiliary engines. Additionally, the Maritime Pollution Prevention
Act of 2008 successfully brought the IMO's MARPOL Annex IV
regulations to the United States once it went into force in May 2005.
Since the 1990s, the Clean Air Act has been in effect to guarantee
clean air. By choosing chemicals that are relevant to the
transportation industry and are thought to be bad for both the
environment and human health, the EPA has put controls on air
pollution.

The Netherlands

By 2020, CO2 emissions in the Netherlands are expected to be 30%

lower than they were in 1990. The Netherlands wants to lower its CO2
emissions beyond what is required under EU laws. By 2020, the EU
wants to reduce emissions by 20% compared to 1990 levels. By 2025,
the Rotterdam Climate Initiative (RCI) wants to have all buildings
climate-proofed and to have cut CO2 emissions by 50%. The
Netherlands' approach and the 2020 EU target both fall 30% shy of the
50% goal. The harbors that are required to abide by the 50% CO2
emission reduction standards are closely tied to the Rotterdam Energy
Port and Rotterdam Sustainable Mobility. According to the Rotterdam
Energy Port, the industrial sector is responsible for more than 85% of
Rotterdam's CO2 emissions, making energy efficiency, energy with low
CO2 emissions, and the usage of energy-efficient products crucial.
Utilizing clean fuel and various modes of transportation is advised by
Rotterdam Sustainable Mobility.

Japan
The Japanese government assembled a group of specialists, and they
created a port environmental strategy that is more effective than the
current one and takes climate change into account. The expert group
was composed of professionals from both the academic and business
worlds, and the policy was implemented by the Ministry of Land,
Infrastructure and Transport on November 22, 2007, in accordance
with item 1 of paragraph 1 of article 14 of the applicable Act, the
"Establishment of Port Policies for Climate Change due to Global
Warming." The group has held regular meetings ever since 2007.

China

The Chinese government adopted a national policy for resource

conservation, environmental protection, and climate change in its
twelfth five-year development plan. The Transportation Bureau has
created associated policies and procedures in line with this national
policy. First, a dedicated chapter on green transportation was included
in the Transportation Twelfth Five-Year Development Plan. This put an
emphasis on creating a nationwide green transportation system,
cutting back on pollution emissions, and conserving energy. The
natural environment needs to be conserved and pollution eradication
efforts needed to be stepped up in order to reach these objectives.
Between 2005 and 2015, China wanted to cut its total energy
consumption per unit of cargo in the port sector by 8%. A further goal
of the Chinese government was a 10% reduction in CO2 emissions per
unit of cargo by 2015. The latter was carried out in accordance with
the Twelfth Five-Year Plan for Reducing the Energy in Road
Transportation.

Major Countries’ Eco-Friendly Vessel Policies

Policies in the EU

In October 2009, the European Commission proposed a 20% reduction

in GHG emissions from 2005 levels by 2020 for the maritime sector. In
recent years, the EU has been actively participating in GHG policies,
such as the imposition of carbon taxes for consumers and businesses
using polluting goods and technologies. The modal shift promotion
programs and the direct ship emissions reduction programs are the
two main pillars of the EU's green shipping initiatives. A marine
pollution control plan and the Marco Polo program are two examples of
typical policies from the first group. Despite the fact that the direct
law of the two organizations is generally equivalent, the EU has
responded more forcefully than the IMO to the introduction of double-
hull oil tankers and the reduction of greenhouse gas emissions during
shipbuilding.

Policies in the U.S.

In contrast to the EU and Japan, the US is more concerned with

addressing its own internal problems than it is with promoting global
environmental shipping standards. Local governments, particularly
those in the west, particularly those in the region of the state of
California, control and enforce U.S. green shipping policies more
strictly than the federal government, as evidenced by the expansion of
the mandatory double-hull requirement in MARPOL Annex I to include
the North American coast in ECA in Annex VI.

Policies in Japan

Japan has taken note of the modal shift that transforms road traffic
into coastal transit due to its location as an island nation. Japan
intends to do this through promoting the construction of modal shift
ships and implementing measures including infrastructure upkeep,
regulatory upkeep, and subsidy payments. To make the construction of
modal change vessels simpler, the Japanese railway transport agency
has drawn up a standardized building structure. It has also eliminated
the regulation of supply and demand adjustment for the domestic
passenger ship firm in order to change the licensing system into a
permit system that encourages entry into the coastal freight sector.

Policies in China
China is home to the fourth-largest shipbuilding market in the world.
The maritime sector in China is making significant efforts to lower
GHG emissions as well as various other types of pollution. Before
hastily adopting these rules and regulations, China in particular has
carefully examined pertinent international agreements, systems, and
regulations. China is also expanding its investigation into
governmental, technological, and operational methods for
transnational information exchange. China is pursuing both the
quantitative expansion of the shipping industry and the reduction in
GHG emissions by developing an appropriate market mechanism in line
with the development scenario of each shipping enterprise.

Conclusion

This study is one of the best illustrations of how shipyards, shipping

companies, and governments in important countries are encouraging
green shipping and environmentally friendly boats. While most earlier
studies had focused on the technology used by eco-friendly vessels or
on figuring out the causes or effects of green shipping, the study's
theoretical contribution is that it broadened understanding of major
nations' green shipping by examining cases within the contexts of
shipyards, shipping firms, and governments.

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