Environmental regulation as a driver for technology development and Blue Growth

Jenny N. Braatceo Danish Maritime

Environmental requirementsConsensus:

more people, more trade,

More Economic Growth

With economic growth consumers will require a better environment

New Technology

Increases in sea trade requires improved technologies just to maintain present emission levelsWe have to keep moving just to stay in the same placeThis has been done before.

Oceans are not just roads

Oceans are reservoirs of food, energy, and other resources, as wells as transport lanes

– Some areas – like the Baltic – are especially vulnerable

– BUT Ships move in and out of all waters

regional rules limit movement & foster inefficiency reduce sustainability

Technology and EnvironmentShipping is a major contributor to environmental impact Restraint is worthwhile

Fuel saving technology –competes with alternative investments–fuel prices fluctuate

Unprofitable technologies –NOx abatement –Ballast water treatment

Transition from emerging to mature technologies is getting faster

But implementation of legislation is getting slower.

12.000 ships

40.000 MW Wind Farm Energy

30 bio. USD 60 bio. USD

Annual CO2-savings:

100 mio. tons 100 mio. tons

Regulation as driverIf delays and uncertainty promote regional laws and changes in requirements

– Potential innovators will: Wait

If Regulatory details change requirments for the technology – Potential innovators : Are blocked

Delays reduce operation– Potential innovators need feed-back

SOx delays will in the same way raise concerns for manufacturers and developers

Enforcement :Non-compliance should not be too cheap

Regulating for the Environment:

Global Regulation

Goal-based Regulation

Stepwise Introduction

Robust Regulation

Enforcement

Harmonize Regional Requirements

Allow innovation

Keep the dates fixed

Avoid frequent adjustment

Make compliance easy