Emission reductions and costs of abatement measures for air pollutants and greenhouse gases from shipping: selected measures with importance for the Swedish Environmental Quality Objectives

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This report is part of the Carrot and Sticks project which has the overall objective to analyse policy instruments and measures that most cost-effectively can reduce air emissions from maritime transport in Sweden. The objective of the study presented in this report is to assess cost estimates for abatement options for measures reducing air emissions of Sulphur dioxide (SO2), nitrous oxides (NOX), particular matter (PM) and greenhouse gases (GHGs) from shipping, along with estimates of emission reductions. The emission reductions in turn contribute to the fulfilment of the Swedish Environmental Quality Objectives; Clean Air, Natural Acidification Only, Zero Eutrophication and Reduced Climate Impact. The results in this report are used as input in a simplified cost-benefit analysis, that is used to derive policy recommendations

A selection of measures that can reduce air emissions from shipping impacting the Swedish Environmental Quality Objectives related to air emissions are analysed in terms of emission reductions and costs for shipowners. The time perspectives for the reductions are focused on 2030 and 2045, but also consider costs in the base case 2015. The analysed abatement measures are:

  • • Fuel switches, from MGO (Marine Gas oil) to LNG (liquified natural gas), LGB (liquified biogas), fossil and renewable methanol
  • • Full electrification by rechargeable batteries
  • • Onshore power supply (OPS)
  • • Selective Catalytic Reduction (SCR)
  • • Wind power (by Flettner rotors)
  • • Energy efficiency measures including advanced route planning, optimized propeller, slender hull,

and hybridization

  • • Speed reduction

The cost calculations are made from a shipowner’s perspective, including investment costs for installing the abatement technology on the ship, changed operational and maintenance costs and, in many cases, cost savings due to reduced fuel consumption. Associated costs that are (not obviously) taken by the shipowner/ operator are not included. Costs per year are calculated for a base- case 2015 with cost estimates and fuel prices for 2015 and for four future fuel price scenarios for 2030 and 2045, based on projections for fossil fuel prices by the International Energy Agency.

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