Fuel EU Maritime and other EU and IMO climate policies-impact on the environment and on Scandinavian shipping

Research Project, 2023 – 2026

Several studies have analyzed the economic impact of recent shipping policies such as the inclusion of shipping in the EU Emissions Trading System (ETS), the Fuel EU Maritime regulation, and changes in the EU tax directive related to marine fuels.
It is important to understand the potential environmental effects of shipping-related policy proposals presented by the EU and discussed globally (by IMO), and how they will impact the shipping sector in terms of future energy and fuel use. There is also a lack of studies focusing on the environmental impact and addressing the impact of volatile energy prices and uncertain developments for these recent policies.
The overall purpose with this project is to contribute with an assessment of the proposed Fuel EU Maritime regulation, as well as other related EU/global policy developments, and their potential influence on the shipping sector and associated environmental impact, focusing on Sweden and the Scandinavian countries. More specifically the project will:
(1) analyze the potential environmental effects (GHGs, air pollutants, water pollution) of some of the proposed shipping policies with a specific focus on the Fuel EU Maritime regulation for Swedish and Scandinavian shipping,
(2) assess the possibilities for different alternative marine fuels and propulsion concepts linked to the Fuel EU Maritime regulation and other relevant EU/global policies,
(3) analyze transport purchasers’ initial reaction to policy changes and proposals such as EU ETS, Fuel EU Maritime, and other uncertainties in the shipping sector (focusing on the Swedish forest industry), and
(4) review how the policy proposals from the EU linked to the Fit for 55 package interact with the climate policy proposals discussed within the IMO.
The results will be valuable for Swedish and Scandinavian shipping actors (industry and authorities) and EU actors in the discussions on the design, implementation and follow-up of the Fuel EU Maritime regulation, EU ETS and other polices for the shipping sector proposed by the EU and discussed by the IMO. The findings are also valuable in more general terms to provide better support for decisions in the shipping sector on measures to reduce the climate impact.