About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

37 Austl. & N.Z. Mar. L.J. 1 (2023)

handle is hein.journals/ausnewma37 and id is 1 raw text is: THE ROLE OF FINANCE IN ACHIEVING GREEN SHIPPING Dora Rizou* 1. Introductory Points Due to its large scale, the maritime industry constitutes a major contributor to air pollution, accounting for slightly less than 3% of the global C02, despite being one of the most environmentally friendly modes of transportation.1 For context, if shipping were a country, it would be the world's sixth largest carbon emitter alongside Brazil and Germany.2 Recent projections show that if no action is taken immediately, GHG may rise to 250% from their 2012 levels by 2050.3 Therefore, a 'sea change is in the making',4 as the shipping sector seeks to reduce its carbon footprint by taking the leap towards the 'green shipping' era. The term 'green shipping' refers to 'the set of practices and eco-environmental efficiency adopted in shipping'5 that ensures cargos are being transported so the used energy/resources do not generate pollutants and preserve the global environment from GHG emissions.6 Due to the large volume of maritime activity and its impact on CO2 emissions, green shipping has been portrayed as 'the new gold',' leading to the introduction of numerous green shipping-related initiatives. IMO', set a goal to decarbonise the maritime industry by 50% by the end of 2050 comparing to 2008.8 This target aligns with EU Climate Target Plan aim to reduce GHGs to at least 55% below 1990 levels by 2030,9 and Paris Agreement goal to keep the global temperature increase below 2°C. IMO's initiative is critical because, unlike other sectors, shipping was neither included in the specific obligations aiming to reduce GHGs imposed by Kyoto Protocol, and no explicit reference to the maritime sector was made in the Paris Agreement. Additionally, although UNCLOS obliges States to adopt international rules/standards to prevent vessel-sourced pollution, it does not provide for obligations regarding GHGs and, therefore, a general perception exists that shipping has 'escaped' its legal obligations concerning climate change.0 However, despite the alarming situation and the relevant steps that have been taken, one of the greatest obstacles to green shipping, is the need for large-scale capital injections to acquire new vessels with fuel-efficient technologies and/or retrofit the old ones. Inevitably, finance plays a pivotal role towards the creation of a greener shipping future and supporting green/sustainable finance in the maritime sector is of great significance for two further reasons: First, investing in green technologies represents a huge upfront cost for shipowners, meaning shipping companies may be reluctant to invest out of fear of a short-term competitive disadvantage in case they are the first/sole movers in this direction. 12 Second, shipping finance generally has become more difficult since 2008, due to numerous withdrawals/defaults of maritime actors following the financial crisis and the consequent * Dora Rizou is a shipping lawyer registered with the Piraeus Bar Association and a Shipping Finance Associate in Watson, Farley & Williams, Athens branch. She holds her LLB and her LLM in Maritime Law from the National and Kapodistrian University of Athens, as well as her LLM in Commercial Law from the University of Cambridge. 'Paul Balcombe, James Brierley, Chester Lewis, Line Skatvedt, Jamie Speirs, Adam Hawkes, and lain Staffell, 'How to Decarbonise International Shipping: Options for Fuels, Technologies and Policies' (2019) 72 Energy Conversion and Management 182. 2 Ibid. s Yubing Shi, 'Reducing Greenhouse Gas Emissions from International Shipping: Is It Time to Consider Market-Based Measures?' (2016) 64 Marine Policy 123. a'Green Shipping Is the New Gold' Hellenic Shipping News (Forum Post, 24 August 2019) <https://www.hellenicshippingnews.com/green- shipping-is-the-new- gold/#:~:text=But%20what%20exactly%20is%20green%20shipping%3F%20%E2%80%9CGreen%20 shipping,port%20management%20an d%20equipment%201ifecycles%20i.e.%/u20circular%20economy> ('Green Shipping Is the New Gold'). 5Augusto Felicio, Ricardo Rodrigues and Vitor Caldeirinha, 'Green Shipping Effect on Sustainable Economy and Environmental Performance' (2021) 13(8) Sustainability 4256. 6 Taehee Leea and Hyunjeong Nam, 'A Study on Green Shipping in Major Countries: In the View of Shipyards, Shipping Companies, Ports, and Policies' (2017) 33(4) The Asian Journal of Shipping and Logistics 253. Green Shipping Is the New Gold (n 4). 8 International Maritime Organization, Adoption of the Initial IMO Strategy on Reduction of GHG Emissions from Ships and Existing IMO Activity Related to Reducing GHG Emissions in the Shipping Sector (Note to the UNFCC Talanoa Dialogue, 2018) <https://unfccc.int/sites/default/files/resource/250_IMO%20submissionTalanoa%20Dialogue April0o202018.pdf>. 9European Commission, '2030 Climate Target Plan' (Webpage) <https://ec.europa.eu/clima/eu-action/european-green-deal/2030-climate- target-planen>. 10 Beatriz Garcia, Anita Foerster and Jolene Lin, 'Net Zero for the International Shipping Sector? An Analysis of the Implementation and Regulatory Challenges of the IMO Strategy on Reduction of GHG Emissions' (2021) 33(1) Journal ofEnvironmental Law 85. Pia Rebelo, 'Green Finance for Sustainable Maritime Transport System: Developing Universal Vernacular for Green Shipping' (2020) 34(1) Australian and New Zealand Maritime Law Journal 15 ('Rebelo'). Watson Farley & Williams, 'Sustainable Finance and Shipping' (Webpage, 4 February 2021) <https://www.wfw.com/articles/sustainable-finance-and-shipping> ('Sustainable Finance and Shipping').

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most