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As of January 1, 2020, the upper limit of sulfur emissions outside emission control areas decreased from 3.5% to 0.5%. This paper aims to present some of the challenges associated with the implementation of the sulfur cap and investigates its possible side effects as regard the drive of the International Maritime Organization (IMO) to reduce carbon dioxide (CO₂) emissions. Even though it would appear that the two issues (desulfurization and decarbonization) are unrelated, it turns out that there are important cross-linkages between them, which have not been examined, at least by the regulators.

A literature review and a qualitative risk assessment of possible CO₂ contributors are presented first. A cost-benefit analysis is then conducted on a specific case study, so as to assess the financial, as well as the environmental impact of two main compliance choices, in terms of CO₂ and sulfur oxide.

From a financial perspective, the choice of a scrubber ranks better comparing to a marine gas oil (MGO) choice because of the price difference between MGO and heavy fuel oil. However, and under different price scenarios, the scrubber choice remains sustainable only for big vessels. It is noticed that small containerships cannot outweigh the capital cost of a scrubber investment and are more sensitive in different fuel price scenarios. From an environmental perspective, scrubber ranks better than MGO in the assessment of overall emissions.

Fuel price data in this paper was based on 2019 data. As this paper was being written, the COVID-19 pandemic created a significant upheaval in global trade flows, cargo demand and fuel prices. This made any attempt to perform even a rudimentary ex-post evaluation of the 2020 sulfur cap virtually impossible. Due to limited data, such an evaluation would be extremely difficult even under normal circumstances. This paper nevertheless made a brief analysis to investigate possible COVID-19 impacts.

The main implication is that the global sulfur cap will increase CO₂ emissions. In that sense, this should be factored in the IMO greenhouse gas discussion.

According to the knowledge of the authors, no analysis examining the impact of the 2020 sulfur cap on CO₂ emissions has yet been conducted in the scientific literature.

This paper examines the relationship between environmental performance, legislation and annual report disclosure using the case of Falconbridge and sulphur dioxide emissions over a period from 1964 to 1991. Legitimacy theory and political economy theory are used to evaluate the disclosure. Two key questions are addressed: How did the corporation respond to changing government regulations for sulphur dioxide abatement? and How did the corporation choose to present these abatement activities in its annual reports? These questions are examined through the methodologies of historiography, interviews and content analysis. Falconbridge has always been in compliance with SO₂ regulations (albeit with a government extension in the late 1970s) and has consistently provided disclosure discussing the technological aspects of sulphur dioxide abatement. While political economy theory has explanatory power, legitimacy theory offers a more compelling explanation.

This study develops the economic rationale for the inclusion of new environmental financial assets, tradable pollution rights, in a well‐diversified portfolio. These new assets are generated and their valuation determined in the market‐incentive environmental regulatory approach called emissions trading, especially the cap‐and‐trade variant. This approach has been gaining wide acceptance and approval. A leading example is the sulfur dioxide market where tradable allowances are assets that may be held by private investors. Transactions in this market have reached volumes indicative of a high degree of liquidity. Comparable tradable rights in other pollutants are under active development. We explain the design and workings of these markets and demonstrate empirically, on the basis of time series data, that sulfur dioxide allowances have rates of return and yield distributions that make them candidates for inclusion in asset portfolios. We conjecture that other tradable pollution rights will exhibit similar properties when sufficient data are available. Financial analysts and accountants are likely to play an increasing role in advising investors about the role of these assets in a well‐diversified portfolio.

Increased political measures to protect the marine environment addresses a shipping industry characterised by strained financial resources, excess supply of capacity and consolidation. In addition, 5-15 per cent of industry participants are believed by shipping experts to neglect rules on vessel-source pollution to stay competitive within their industry and vis-à-vis other transport modes. This study aims to identify and quantify cost effects of maritime environmental legislation, to relate these with company characteristics and to investigate the impact of regulatory compliance.

A mixed-methods design was used to develop both a theoretical model of compliance costs effects and to quantify effect sizes. In total, 12 in-depth exploratory expert interviews were conducted and analysed. A theoretical framework emerged, which was evaluated, strengthened and fed with quantitative data from questionnaire data by 120 shipping companies. Partial least squares analysis was conducted to determine compliance cost effects.

It was found that organisational capacities played a significant role in determining compliance behaviour. Exterior determinants showed no significant correlation with legal compliance. This is a striking result, as it does not support achieving legal compliance with measures of strong enforcement.

European transport policy-making depends on scientifically sound studies on the impact of policy. An in-depth impact assessment on environmental legislation for the maritime industry highlights mechanisms applicable to environmental policy-making in transport and helps in building policy that considers compliance concerns, company characteristics and the interconnectedness of different transport modes for a sound response to the tragedy of the commons.

Originality lies in the inductive development of a comprehensive theory on shipping companies’ legal compliance behaviour and the empirical testing of this theory. Further value is derived from applying a sequential mixed-methods approach to the research problem, showing both the worth and challenge in combining different methodologies to achieve sound research results.

The purpose of this study is to investigate the rheological behaviour of commercial lubrication oils used for cylinder lubrication in two-stroke marine diesel engines. Furthermore, it is of interest to investigate whether the viscosity of lubrication oils is affected by different levels of alkalinity.

Viscosity measurements are performed using both rotational and capillary rheometry. It was possible to measure oil viscosity in the shear rate from 0.1 to 3,000 s⁻¹ using rotational rheometry, whereas capillary rheometry allowed measurements in higher shear rates from 5 × 10⁵ to 1.3 × 10⁶ s⁻¹ at 50°C.

The viscosity measurements show that the studied lubrication oils behave as a Newtonian fluid and that the viscosities are insensitive to the level of alkalinity. Furthermore, the viscosity/temperature dependency for the lubrication oils was found to fit the Arrhenius model.

This study presents useful information about the rheological behaviour of lubrication oils, more precisely how the oil properties are affected by shear rate, temperature and level of alkalinity. The value of this research is considered to be important for designing two-stroke diesel engines and cylinder lubrication systems.

Long haul freight transport imposes huge negative environmental externalities on society. Although these can never be entirely eliminated, they can be reduced. The purpose of this chapter is to analyse some of the many mitigating measures, or interventions, that can be used.

The approach used in this chapter is to review the literature and provide an overview of the main theoretical and practical mitigation measures available to transport operators.

There are literally thousands of possible mitigation measures and combinations that can be used by operators to reduce their environmental footprint. Each of these measures warrants a separate chapter. This chapter can only present an overview of the principle available measures. Although some mainland European examples are used, it is acknowledged that the examples used are somewhat skewed towards the United Kingdom.

The value of the chapter is in bringing together some of the many measures and approaches that can be used to reduce the environmental externalities of long haul freight transport. Much of the information on such interventions is based on industrial and EU project sources rather than purely academic research and so is less likely to be found in academic journals.

The International Maritime Organization has decided that as of 1.1.2020, SOx content in a ship’s emissions should be no more than 0.5 per cent. The purpose of this paper is to address the various challenges expected to arise from the enforcement of the global cap sulfur regulation.

The authors outline various enforcement options and present a model that calculates the profits from noncompliance in the high seas, so as to help determine the level of fines that could be imposed in case of violation.

The main finding is that a harmonized system of fines, which are more than potential savings from cheating, would be a strong deterrent for compliance.

To the authors’ knowledge, no paper in the maritime literature on sulfur regulations has focused on enforcement as of yet.

This chapter presents a framework which is accessible to port authorities to assess the potential environmental impact of maritime operations. Pursuant on globalisation, increased numbers of ship movements have generated more frequent routine maritime operations in ports but few formal approaches exist for assessing their environmental impact, which potentially could be significant. In a novel framing of environmental assessment a business process modelling technique is deployed in a systems approach which highlights inputs, service processes and outputs. In an initial focus, primary processes at strategic level are defined which affect the environmental assessment of present and future operations and their potential impacts. Later, tactical service processes define the integrity of processes that guarantee service level and quality. Finally, outputs are defined by operational processes. The contribution of applying the systems approach to plan more sustainable maritime operations is assessed in a case study of Falmouth Harbour Commissioners (FHC) which regulates much of Falmouth Harbour and hosts the UK's largest offshore marine bunkering operation. Following EU designation of a North Sea Sulfur Oxide Emissions Control Areas (SECA) Falmouth recently recorded a significant rise in the number of vessels calling, and volume of fuel sold as more passing vessels take onboard low-sulfur fuel. The systems approach which empowers FHC to mitigate potential risks and assess development proposals proactively is easily transferable to other ports.