Maritime Policy Bulletin 003 explores the economics of shipping decarbonisation, offering financial insights into how effectively the maritime industry is aligning environmental objectives with economic performance.

Drawing on recent research by Dr. Yao Shi and Dr. Ioannis Moutzouris of City St. Georges, University of London, this bulletin presents a summary of allocation efficiency across 14 vessel types. It highlights key findings on carbon efficiency and provides financial perspectives that inform actionable policy recommendations aimed at accelerating the adoption of greener fuels.

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There are insufficient financial incentives to stimulate eco-ship investment (where engines are more fuel efficient) risking missing emissions reduction targets.

In this research by Clean Maritime Research Hub’s Dr Ioannis Moutzouris and colleagues the price differentials are explored using data over recent years.

Policy recommendations include the need for:

• Clarity and certainty around market-based measures and alternative fuels regulations
• Green finance options to encourage investment in eco-ships
• Fossil fuel levies to discourage conventional ship use and encourage eco-ship investment

You may also be interested in Determinants of the price premium for eco vessels – UK National Clean Maritime Research Hub