Drivers of eco-innovation in shipping- the case of the North Sea SECA

What is it about?

As more industries take into account their effect on the environment, regulations are driving the introduction of new technologies. In this case, the author addresses how air pollution regulations are affecting environmental technologies in short shipping through the North Sea, Baltic Sea, and English Channel. The International Maritime Organization (IMO) and their creation of Sulphur Emission Control Areas (SECA), influences no only the technological innovations required to refit sea going vessels, but also influence the overall strategies of the shipping industry. How will the shipping companies account for increases in fuel prices and other operational costs to meet the new regulations? This study examines how each factor affects the business strategies of shipping companies in Northern Europe.

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Photo by Dylan McLeod on Unsplash

Photo by Dylan McLeod on Unsplash

Why is it important?

The SECA zones implemented by the IMO are designed to lower sulphur emissions in the Northern Seas and reduce significant air pollution caused by shipping vessels. In order for the shipping industry to maintain an efficient and profitable business, ship owners must take into consideration the additional costs that will make certain their vessels are in compliance with SECA regulations while maintaining a profitable business model. There is a delicate balance between observing regulations and maintaining a successful shipping company. However, ship owners must realize that, in the long run, the increased fuel efficiency by way of using cleaner fuels or implementing green technology will benefit the ovearll value of the company.

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