Bunker Levy Imposition Can Cut Tanker Emissions By 43%

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A case study in ScienceDirect talks about the impacts of a bunker levy on decarbonizing shipping.

Market-Based Measures to check carbon footprint 

The pressure on shipping to reduce its carbon footprint is increasing. Various measures are being proposed at the International Maritime Organization (IMO), including Market-Based Measures (MBMs).

The paper published in ScienceDirect investigates the potential of a bunker levy in achieving short-term CO2 emissions reductions. The analysis focuses on the tanker market and uses data from the latest IMO GHG studies and a variety of other sources.

The connection between fuel prices and freight rates on the one hand and vessel speeds on the other is investigated for the period 2010–2018. A model to find a tanker’s optimal laden and ballast speeds is also developed and applied to a variety of scenarios.

Bunker levy can lead to emission reductions

Results show that a bunker levy, depending on the scenario, can lead to short-term CO2 emissions reductions of up to 43%. Policy implications are also discussed, particularly vis-à-vis recent IMO and European Union (EU) action on MBMs.

Read the full article here.

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Source: ScienceDirect

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