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A Roadmap towards the Decarbonization of Shipping: A Participatory Approach in Cyprus

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Abstract

Greenhouse gas (GHG) emissions from human activities are driving climate change and are currently at their highest levels in history. The international community, through the United Nations process, places great emphasis on the decarbonisation of our economies across all sectors. GHG emissions from maritime transport, even if considered the most carbon efficient method of transportation, are projected to increase if no action is taken to decarbonise, and thus pressure has extended to the maritime sector to contribute to the significant GHG emission cuts necessary. The paths by which the maritime sector can contribute to the achievement of the international target of GHG reduction by 2050 are still being determined, but numerous promising options exist. This paper aims to provide an overview of action towards decarbonisation by the international maritime sector, and to assess how Cyprus, an important flag state, can contribute to decarbonisation efforts. A participatory approach was used, through implementation of the EIT Climate-KIC’s Deep Demonstrations methodology, as part of the ‘ Zero-Net Emissions, Resilient Maritime Hubs in Cyprus’ project. The results were used to identify a portfolio of actions related to policy and regulatory development, education and re-skilling, technological development, and operation optimisation, which can support the decarbonisation of the maritime sector in Cyprus.
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Citation: Nisiforou, O.; Shakou, L.M.;
Magou, A.; Charalambides, A.G. A
Roadmap towards the
Decarbonization of Shipping: A
Participatory Approach in Cyprus.
Sustainability 2022,14, 2185. https://
doi.org/10.3390/su14042185
Academic Editor: Phoebe Koundouri
Received: 31 December 2021
Accepted: 1 February 2022
Published: 15 February 2022
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sustainability
Article
A Roadmap towards the Decarbonization of Shipping: A
Participatory Approach in Cyprus
Olympia Nisiforou 1, *, Louisa Marie Shakou 2, Afroditi Magou 1and Alexandros G. Charalambides 1
1Department of Chemical Engineering, Cyprus University of Technology, Corner of Athinon and
Anexartisias 57, 3603 Lemesos, Cyprus; afroditi@energlab.ac.cy (A.M.); a.charalambides@cut.ac.cy (A.G.C.)
2Cyprus Energy Agency 2-12 Lefkonos Street, 1011 Nicosia, Cyprus; louisa.shakou@cea.org.cy
*Correspondence: olympia.nisiforou@cut.ac.cy
Abstract:
Greenhouse gas (GHG) emissions from human activities are driving climate change and
are currently at their highest levels in history. The international community, through the United
Nations process, places great emphasis on the decarbonisation of our economies across all sectors.
GHG emissions from maritime transport, even if considered the most carbon efficient method of
transportation, are projected to increase if no action is taken to decarbonise, and thus pressure
has extended to the maritime sector to contribute to the significant GHG emission cuts necessary.
The paths by which the maritime sector can contribute to the achievement of the international
target of GHG reduction by 2050 are still being determined, but numerous promising options exist.
This paper aims to provide an overview of action towards decarbonisation by the international
maritime sector, and to assess how Cyprus, an important flag state, can contribute to decarbonisation
efforts. A participatory approach was used, through implementation of the EIT Climate-KIC’s Deep
Demonstrations methodology, as part of the ‘ Zero-Net Emissions, Resilient Maritime Hubs in Cyprus’
project. The results were used to identify a portfolio of actions related to policy and regulatory
development, education and re-skilling, technological development, and operation optimisation,
which can support the decarbonisation of the maritime sector in Cyprus.
Keywords: maritime; sustainability; decarbonization; stakeholders; shipping
1. Introduction
Shipping is a key factor of the global economy; in 2019 alone, eleven billion tons of
seaborne trade were carried by ships weighing over 1000 gross tons (GT), which amounts
to 80% and 70% of world trade by volume and value, respectively [
1
]. Even during the
COVID-19 pandemic, ships continued to transport essential goods and medical supplies,
and ports remained open to facilitate the distribution of goods [2].
Sea transport is considered the most carbon-efficient mode of transportation compared
to other modes such as air, truck, or rail [
3
,
4
], since it emits less carbon dioxide per
tonne-km compared to other forms of transport, accounting for 3% of global annual CO
2
emissions [
5
]. Yet, these emissions are expected to grow from 50 to 250% by 2050 across a
range of plausible long-term economic and energy scenarios [
5
]. Thus, through the Unite
Nations (UN) process, the international community has placed increasing emphasis on the
decarbonisation of the maritime sector. The International Maritime Organization (IMO)
has set a target for international shipping to decarbonise by at least 50% from 2008 levels
by 2050 [
6
], while the Green Deal of the European Union (EU) has prioritised the transition
to climate neutrality, and the need to cut GHG emissions across all sectors, including the
maritime sector.
Many factors can catalyse action by the maritime sector towards more environmentally
conscious and sustainable operations, including the enactment of major international pro-
tocols, the enforcement of governmental policies and regulations, research and innovation
Sustainability 2022,14, 2185. https://doi.org/10.3390/su14042185 https://www.mdpi.com/journal/sustainability
Sustainability 2022,14, 2185 2 of 27
into new technologies and fuels, among others. As with other sectors, there is no single
optimum solution to decarbonisation. Decreasing carbon emissions will encompass a
variety of options, including new fuel sources, increasing technical and/or operational
efficiencies, drafting new policies and regulations, pivoting to new business models, and
investing in education and re-skilling.
In moving away from heavy fuel oil (HFO), the maritime industry considers liquefied
natural gas (LNG) as the currently most appealing alternate fuel to HFO, arguing that it can
act as a bridging fuel until alternative renewable fuels become available, with reduced direct
CO
2
emissions and air quality impacts [
7
]. However, increased LNG use has unintended
negative consequences related to methane slip, with methane being a potent GHG with
a greater warming potential than CO
2
[
8
], thus undermining decarbonisation efforts. In
addition, the Global Methane Pledge announced at COP26 in Glasgow, UK, which commits
signatories to reduce their overall methane emissions by 30 percent by 2030 compared
to 2020 levels, further reduces the compatibility of LNG use with efforts to reduce GHG
emissions [
9
]. This new initiative emphasises making cuts by tackling methane leakage
from oil and gas wells, pipelines, other fossil fuel infrastructure, and other sources [
9
,
10
].
In view of this, other alternative fuels are being developed including biofuels, methanol,
hydrogen, electric propulsion, and even nuclear fuels, but each offer differing levels of
decarbonisation, with different economic costs and environmental profiles related to the
release of both air and marine pollutants [1115].
Various efficiency measures exist that can reduce fuel consumption, i.e., slow steaming,
as well as emission reduction measures relating to energy efficiency or vessel
design [1619]
.
However, efficiency depends on various aspects, such as the class of vessel and their application.
Policy plays a significant role in decarbonisation, and various studies have assessed
its importance [
16
,
20
,
21
]. A global review and taxonomy of policies, incentives, and
measures [
22
] found that economic incentives that motivate the adoption of less envi-
ronmentally damaging practices are the most commonly used measures, followed by
infrastructure investments and policies. Several studies have also analysed market-based
policy mechanisms (MBMs) to achieve shipping decarbonisation [
22
26
]. Market-based
measures (MBMs) are more flexible measures that use price or other economic variables
to provide monetary incentives for polluters to reduce emissions [
23
], and can be divided
into three categories: environmental price control, environmental quantity control, and
subsidies [27].
In line with the above, the literature suggests that technologies and policies should
be used in combination, resulting in significant reductions [
16
,
19
]. Balcombe et al. [
16
]
reviewed several combinations of fuels, technologies, and policies that may be used to
reduce GHG emissions from international shipping and assessed combinations of possi-
ble reduction measures, while providing recommendations regarding effectiveness and
economic–political feasibility. The impacts of other CO
2
equivalent gases (i.e., methane,
NOx, and SOx) should also be considered [19].
While it is difficult to currently identify and implement ‘best practices’ for decarboni-
sation, the sector is taking its first steps, and it is important to understand the challenges
that they face and opportunities that they see for the future. To that end, studies have
been conducted focusing on different regions of the world, such as China [
28
], Italy [
29
],
Denmark [30], and a study in Greece [31].
This paper presents the findings from the Deep Demonstrations project on ‘Zero-Net
Emissions, Resilient Maritime Hubs in Cyprus’, funded by EIT Climate-KIC in 2019. The
project was established to mobilise actors in the maritime sector to work together to achieve
decarbonisation through systems innovation using a participatory approach. Through
a series of interviews with thirty-eight stakeholders, across eight clusters of operations
within the maritime industry in Cyprus, the needs of, and barriers to, decarbonisation
faced by maritime stakeholders in Cyprus were identified. To date, there have been no
relevant studies in the literature investigating the perspective of maritime stakeholders on
decarbonisation in Cyprus, an important flag state. The findings from the interviews were
Sustainability 2022,14, 2185 3 of 27
used to group and categorise the barriers, enablers, and potential challenges faced by the
maritime sector in Cyprus and were applied in the development of a Vision and Roadmap
for the decarbonisation of the sector.
The paper is organised in the following way: Section 2provides a description of the
Cyprus maritime sector; Section 3presents an overview of the policies and regulatory frame-
work governing the reduction of GHG emissions from shipping; Section 4describes EIT
CKIC’s systems innovation and Deep Demonstrations methodology; and Section 5presents
the findings of the ‘Zero-Net Emissions, Resilient Maritime Hubs in Cyprus’ project.
2. Overview of Current State in Cyprus
Historically, shipping in Cyprus can be traced back thousands of years. The island de-
veloped its sailing and trading capabilities through interaction with the many civilisations
that occupied Cyprus, each with its own maritime history, such as the Egyptians, Greeks,
Romans, French, Venetians, and British [
32
]. Cyprus’ drive for distinction in merchant
shipping has been naturally facilitated by its ideal geographic location, at the crossroads
of three continents: Europe, Asia, and Africa [
32
]. In recent decades, Cyprus recognised
as early as 1963, the political, economic, and social importance of the maritime sector. It
has built the country into a fully-fledged shipping centre, combining both a sovereign flag
and a resident shipping industry, which successfully attracts entrepreneurs and interna-
tional maritime organisations, drawn by the high-quality services and safety standards on
offer [32].
Cyprus now constitutes a global maritime force; the Cypriot flag is ranked 11th globally
with a merchant fleet of a gross tonnage exceeding 23 million [
33
]. The Cypriot merchant
fleet ranks third in the EU, with about 11% of the EU Member States’ total fleet. It represents
20% of the world third-party ship management market [
33
]. This is the result of various
actions by the Cypriot government, including the development of advanced infrastructure
and services that provide several advantages to maritime stakeholders and a competitive
tax regime. In addition, Cyprus has introduced a Merchant Shipping Law, encompassing
the Cyprus Tonnage Tax System, approved by the European Commission, which provides
regulations for owners of Cypriot and foreign ships, charterers, and ship managers. Ships
are subject to an annual tonnage tax, which is reduced if some environmental practices are
used [
34
]. In addition to the above, maritime transport is the second biggest blue economic
sector in Cyprus (after tourism), exhibiting a significant upward trend in employment, and
accounts for 36% of the added value of the blue economy. A substantial number of new
jobs are expected to be created in the maritime transport sector over 2016–2026, reaching
4.3% per year [35].
The high relevance of the sector for the country economy led to the establishment of
the Cyprus Deputy Ministry of Shipping in March 2018. The deputy ministry is responsible
for the coordination, development, and implementation of a complete national shipping
strategy for the expansion of the Cyprus Register of Ships and the Cyprus shipping cluster;
the continuous updating and implementation of shipping legislation; the registration of
ships in the Cyprus Register of Ships and the issuing of relevant certificates and licenses;
the promotion and support of investments in shipping; the promotion of maritime training
and education; as well as the provision of support and information to shipping [36].
Cyprus is part of the Paris Agreement, which aims to reduce GHG emissions and the
United Nations Convention on the Law of the Sea (UNCLOS), a highly ratified convention
on protecting and preserving the marine environment [
37
]. Furthermore, as an EU country,
Cyprus follows the directives and regulations imposed by the EU, including the regulations
under the Green Deal and the IMO. It also follows the Sustainable Development Agenda of
the UN, where one of the goals is to take urgent action to combat climate change and its
impacts [38].
Sustainability 2022,14, 2185 4 of 27
3. Regulations, Policies, and Frameworks Relevant to the Reduction of GHG
Emissions in Shipping
3.1. International Maritime Organisation (IMO)
The Fourth IMO GHG Study released in 2020 reports that GHG emissions from
shipping increased by 9.6% from 2012 to 2018, with methane emissions increasing by
150%. With business as usual (BaU) scenarios, 2050 emissions are projected to increase to
90–130% more than 2008 levels and 0–50% more than 2018 levels. In the EU, domestic and
international shipping accounted for 13.3% of the EU-28 transport-related emissions in 2019,
with about 90% of all energy used in shipping activities attributable to international marine
navigation [39]. Consequently, CO2emissions from maritime transport have increased by
48% between 1990 and 2008 at the EU level, making it responsible for the second-largest
percentage increase in GHG emissions over 1990 levels in the EU-28 transport sector [40].
As a result of these increasing emissions, the International Maritime Organization
(IMO) adopted the Initial Strategy on Reduction of GHG Emissions from Ships (Resolution
MEPC.304(72)) [
6
], which sets out the targets found in Table 1. Strict targets have also been
put in place to significantly reduce NOx and SOx air quality-related emissions [41,42].
Table 1. Targets of the IMO’s Initial Strategy on the Reduction of GHG Emissions from Ships.
Target Explanation
Carbon intensity of the ship to decline
Via implementing further phases of the energy
efficiency design index (EEDI) for new ships. The
strategy calls for the review and strengthening of
the EEDI requirements for ships (with the
percentage improvement for each phase to be
determined for each ship type)
Carbon intensity of international shipping
to decline
To reduce CO
2
emissions per transport work, as an
average across international shipping, by at least
40% by 2030, pursuing efforts towards 70% by
2050, compared to 2008.
GHG emissions from international
shipping to peak and decline
To peak GHG emissions from international
shipping as soon as possible and to reduce the total
annual GHG emissions by at least 50% by 2050
compared to 2008
To achieve the abovementioned targets, the IMO Initial Strategy identifies the need for
innovation and the development of a portfolio of design, technological, operational, and
economical solutions for international shipping as essential. The IMO has created a list of
short-, mid-, and long-term measures to achieve these targets, in the hope of providing
regulatory certainty and signalling to the maritime industry the need for technology invest-
ments. The Strategy will be revised in 2023 to include more limitations and mechanisms
for reducing GHG emissions [6].
Although many IMO and EU instruments are related to safety and security, envi-
ronmental protection, health and safety and technical cooperation, and contribute to the
Sustainable Development Goals (SDGs), there is no explicit link between them. The recent
Initial IMO strategy on the reduction of GHG emissions from ships is an exception, as a
commitment to the achievement of SDGs is directly addressed in this Strategy.
IMO’s obligation to the implementation of the 2030 Agenda for Sustainable Develop-
ment is definite in the vision statement of the Organization’s Strategic Plan for the period
2018–2023, where it acknowledges its leading role for the promotion of the 2030 Agenda for
Sustainable Development among its Member States while supporting its effective imple-
mentation. In this direction, IMO’s Strategic Plan for the aforementioned strategic period
includes seven SDGs to enable the achievement of its vision statement.
The International Convention for the Prevention of Pollution from Ships (MARPOL)
is the main treaty of the IMO, first adopted in 1973, contributing to the reduction of
Sustainability 2022,14, 2185 5 of 27
international marine pollution. It is divided into six Annexes, each dealing with different
environmental challenges [
40
]. In 1997, the MARPOL Annex VI was adopted, which
limits the main air pollutants contained in ships exhaust gas, including sulphur oxides
(SO
x
) and nitrous oxides (NOx), and prohibits the deliberate emissions of ozone depleting
substances (ODS). It regulates shipboard incineration and the emissions of volatile organic
compounds (VOCs) from tankers. Moreover, it sets mandatory energy efficiency standards
for new ships and operational measures for energy efficiency, thus reducing carbon dioxide
emissions from existing ships. The IMO’s Marine Environment Protection Committee
(MEPC) constantly revises Annex VI, with the intention of significantly strengthening the
emission limits, based on technological improvements and implementation experience.
For the short to medium term, mandatory energy efficiency standards for new ships and
operational measures for promoting energy efficiency for existing ships entered into force
in 2013, as amendments to MARPOL Annex VI [43].
In line with the above, the Energy Efficiency Design Index (EEDI) was made com-
pulsory for new ships and the Ship Energy Efficiency Management Plan (SEEMP) for all
ships at MEPC 62 (July 2011) with the adoption of amendments to MARPOL Annex VI
(resolution MEPC.203(62)), by Parties to MARPOL Annex VI [44].
The (EEDI) measures the CO
2
emissions emitted by a ship per tonne of capacity
and the mile of distance travelled (transport work). The EEDI is a measure of energy
efficiency, as CO
2
emissions are directly proportional to the fuel and, therefore, a ship’s
energy consumption. The EEDI is related to the hardware used during the design phase of
a ship, and aims to increase the efficiency of new ships over time by integrating innovative
and technologically advanced (and thus energy-efficient) equipment onboard. The EEDI
is a non-prescriptive mechanism that leaves the choice of technologies up to industry.
Through successive energy efficiency requirements (there have been three phases of the
EEDI until now), the EEDI stipulates that new ships constructed from 2022 are at least
30% more energy efficient than the baseline set by the IMO, which varies across different
ship types. Although EEDI is directly related to the energy efficiency of the hardware used
onboard new ships, it does not control how the equipment will be used over time, ensuring
energy-efficient operation.
In addition to EEDI, the Energy Efficiency Operation Index (EEOI) is an IMO monitor-
ing tool that aims to collect all relevant data for the ship’s energy usage and, therefore, the
consumption of fuel onboard. An overall mechanism for preserving operational energy
efficiency is also provided by the Ship Energy Efficiency Management Plan (SEEMP), which
encourages ship owners and management companies to monitor the energy efficiency of
their ships. It includes clear schedules for the proper maintenance of the equipment on
board. Technological innovations like autopilot upgrades, wind engines, etc., are adopted
through effective EEDI and SEEMP implementation strategies, including speed reduction,
weather routing, use of auxiliary power, and a focus on aerodynamics. The optimisation of
operational and maintenance practices, such as regular propeller and hull cleaning, can
considerably reduce power requirements as well. It also refers to a clear shift towards the
use of alternative and renewable fuels.
IMO MEPC70 adopted, on 28 October 2016, a mandatory Fuel Oil Data Collection
System (DCS) for international shipping. It requires ships of 5000 gross tonnage or above to
collect and report data for the IMO database from 2019. It was adopted as an amendment to
Chapter 4 of Annex VI of MARPOL, adding a new Regulation 22 A, requiring one to submit
to the IMO Ship Fuel Oil Consumption, the collection and reporting data of ship fuel oil
consumption and new appendices that cover the Information Database. The amendments
came into force on 1 March 2018.
The IMO implemented amendments to Annex VI of the MARPOL convention in the
76th session of the Marine Environment Protection Committee (MEPC 76) conducted in
June 2021. The amendments include the adoption of new energy efficiency requirements
through the introduction of the Energy Efficiency Existing Ship Index (EEXI) and Carbon
Intensity Indicator (CII). Whereas the EEXI is concerned with how ships are equipped or
Sustainability 2022,14, 2185 6 of 27
designed, the CII indicates how the ships operate. These new adoptions are part of the
global suite of measures to reduce greenhouse gas (GHG) emissions in shipping.
The Energy Efficiency Existing Ship Index (EEXI) is a component of IMO’s technical
approach to improving the efficiency of existing ships. Furthermore, IMO has established
this new design index extension of EEDI, for existing ships constructed before 2013 that
takes into account only the vessel’s design parameters and not the operational factors.
Additionally, the Carbon Intensity Indicator (CII) is a new measure based on an
operational approach that supports the IMO’s objective “to reduce CO
2
emissions per
transport work, as an average across international shipping, by at least 40% by 2030,
pursuing efforts towards 70% by 2050, compared to 2008.” In June 2021, IMO adopted a
CII rating scheme for ships based on their operational efficiency, which will measure how
efficient ships are when transporting cargo and passengers.
IMO’s environmental regulations aim to facilitate the use of more environmentally
friendly ships, and hasten the removal of inefficient/polluting existing ships from the
global fleet. Both MARPOL legislation and the IMO’s GHG ambitions are hoping to drive
technology developments in ship propulsion and power generation, emission abatement
technology, alternative fuels and renewable energy sources, and improvements in ship
design and performance, stimulating an ever-reduced environmental footprint of the
shipping industry. Even though an international approach to address GHG emissions from
international shipping led by the IMO would be the most effective and thus desirable, IMO
currently has no concrete measures to ensure the implementation of its targets, reducing the
effectiveness of IMO’s Initial Strategy [
45
]. The IMO’s inability to enforce radical measures
towards a carbon-free shipping industry has triggered the EU to take action to reduce
shipping-related emissions [23].
3.2. Governmental and Intergovernmental Regulatory Frameworks
3.2.1. European Green Deal
Shipping carries 90% of European external trade, 40% of EU internal trade, and more
than 400 million passengers aboard cruises and ferries, which embark and disembark at
EU ports each year [
46
]. European companies and residents control about 40% of the
world’s shipping fleet, and 25% of the world fleet flies a European flag. Maritime transport
is an important component of the European economy, and it includes sea and coastal
passenger water transport, sea and coastal freight water transport, inland passenger water
transport, inland freight water transport, and the renting and leasing of water transport
equipment. At the EU level, the European Commission (EC) announced its Green Deal on
11 December 2019, which sets out how to make Europe the first climate-neutral continent by
2050 [
47
]. As part of the Green Deal, the Commission adopted the proposal for a European
‘Climate Law’, which enshrines the objective of achieving climate neutrality by 2050 in
legislation, as it ensures that all EU policies and sectors contribute to the attainment of the
climate neutrality objective. In its Communication on the Green Deal (COM (2019) 640), the
Commission states that, to achieve climate neutrality, at least a 55% cut in carbon emissions
is required by 2030, and a 90% reduction in transport emissions will be required in 2050. All
transport sub-sectors, including road, rail, aviation, and waterborne transport, will have to
contribute to this reduction. To ensure that these reductions will be met, the EC announced
the amendment of the EU Emissions Trading System (ETS) Directive, by Directive (EU)
2018/410 of the European Parliament and the Council, which emphasises the need to act
on shipping emissions [
47
]. The inclusion of the shipping industry within a dedicated
and purposely developed ETS scheme may act as a radical market-based measure with a
catalytic impact on the decarbonisation of the sector. The directive states the need for a
regular review of the IMO actions by the EC, and states that the call for action to reduce
emissions in the maritime sector will start from 2023, and will include preparatory work
and stakeholder consultation [47].
In line with the IMO, and even a step forward [
48
], the EU expects a gradual approach
to adding maritime GHG emissions in its emission reduction commitments. Motorways
Sustainability 2022,14, 2185 7 of 27
of the Sea (MoS) [
49
] is an important EU initiative for shipping-related emissions. The
concept was introduced along with the 2001 ‘Transport White Paper—European Transport
Policy for 2010: Time to Decide’ [
50
], and it constitutes the maritime pillar of the Trans-
European Network (TEN-T) [
51
]. This initiative aims to promote green, viable, attractive,
and efficient sea-based transport links integrated into the entire transport chain. The MoS
concept builds on the EU’s goal of achieving a clean, safe, and efficient transport system,
by transforming shipping into a genuine alternative to overcrowded land transport. This
can lower environmental costs by inducing a decrease in fuel consumption by road freight
transport [
52
]. The EU has also implemented a system for monitoring, reporting, and
verifying CO
2
emissions based on a ship’s fuel consumption, which has been fully effective
since 1 January 2018 [
53
]. The EU has also created a policy framework on the Integrated
Maritime Policy (IMP), with a holistic approach to all sea-related EU policies, aiming to
embrace all sea-based activities, and accordingly, strengthen the blue economy [54].
3.2.2. EU MRV
In June 2013, the European Commission proposed a strategy for progressively integrat-
ing maritime emissions into the EU’s policy for reducing its domestic GHG emissions. After
a two-year legislative process involving all EU institutions, this strategy was adopted by the
European Parliament in April 2015. The Regulation 2015/757 (‘Shipping MRV Regulation’)
came into force on 1 July 2015.
The strategy consists of three consecutive steps:
monitoring, reporting, and verification of carbon emissions from ships;
GHG reduction targets for the maritime transport sector;
further measures, including market-based measures (MBM).
The first step of the strategy is the design of a robust monitoring, reporting and
verification (MRV) system of carbon emissions for ships exceeding 5000 gross tonnage (GT)
on all voyages to, from, and between EU ports, applicable from 2018.
The list above is not exhaustive; thus, other regulations and frameworks may exist in
support of the same goal.
4. Methodology
According to a report by the High-Level Panel of the European Decarbonisation
Pathways Initiative, ‘to let shipping reach its required contribution to achieving global
climate change control, it will ultimately need to be decarbonised entirely’ [
55
]. Papandreou
et al. [
27
] have also found that virtually full decarbonisation would be needed in the longer
term, meaning the fleet-wide deployment of near-zero carbon ships. The ‘EIT CKIC Deep
Demonstrations on Net-Zero Emissions, Maritime Hubs in Cyprus’ was set up for precisely
this objective: to accelerate the transformation of the maritime sector through working
with a cohort of ambitious ports and other shipping industry actors to achieve net-zero
carbon emissions. The project aims to work with stakeholders in the sector on the Deep
Demonstrations process, which provides the objectives and tools to progress towards the
different phases and roll out system innovation of the sector [
56
]. System innovation is
the transition from one socio-technical system to another, like the industrial revolution.
For this transition, the system requires continued evolution to transform economic, social,
and financial systems that will trigger an exponential change in decarbonisation rates and
strengthen climate resilience and achieve what the IPCC report calls “rapid, far-reaching
and unprecedented changes in all aspects of society” [
57
]. Thus, the Deep Demonstrations
process has four phases [
58
] which will assist in the systemic innovation approach: INTENT,
FRAME, PORTFOLIO, and INTELLIGENCE.
4.1. INTENT
The INTENT phase was the first phase of Cyprus’ Deep Demonstrations maritime
project, which started in 2019. It set up the Deep Demonstrations process, and was designed
to establish directionality, assess the needs of the sector, and set the objectives needed for
Sustainability 2022,14, 2185 8 of 27
systemic change within the maritime sector in Cyprus. It comprised system mapping and
stakeholder interviews.
4.1.1. System Mapping
This step aimed to understand and map the system, i.e., the Cyprus maritime sec-
tor [
36
]. As part of system mapping, an identification of existing innovation or transition
activities in Cyprus, and internationally, in the maritime sector, as well as existing laws
and treaties, were identified. In further support of this step, a comprehensive review of
recent reports related to the decarbonisation of the maritime sector was undertaken to
build an understanding of the features of the sector and the potential challenges, barriers,
and opportunities in the area of decarbonisation. The System Mapping step resulted in a
characterisation of the maritime sector in Cyprus, and an identification of the barriers that
can become powerful enablers of transformation (levers), as well as the steps needed to
instigate change. Within the system mapping process, critical stakeholders representing all
significant operations across the maritime sector in Cyprus were identified [59].
4.1.2. 1–1 Interviews
The review outlined in 4.1.1 led to a selection of the most relevant stakeholders for
interview, which would be able to provide insight, know-how, and expert feedback [
60
,
61
]
across the different sub-areas of the maritime industry, in relation to potential paths to
decarbonisation. Emphasis was placed on ensuring the sufficient diversity of identified
stakeholders in terms of activity area (ship owners, ship management companies, port
authorities, etc.) and organisational affiliation (e.g., business, governmental and public au-
thorities, non-governmental organisations). The identification of the relevant stakeholders
to interview was also facilitated through the development of a list of selection criteria, as
set out in Table 2, which acted as a simple rubric in the selection process (each stakeholder
did not need to meet every selection criterion).
Table 2. Selection criteria which aided in the identification of the stakeholders.
Number Selection Criterion Rationale
1Sub-sector of the
maritime industry
The maritime sector is diverse, with various
actors across different areas of operations. It is
important to capture actors from all aspects of
the maritime sector in Cyprus.
2 Size of organisation
This is related to the number of resources
available to the stakeholder and their ability to
mobilise them, including human, financial,
technological, etc. The level of resources can
affect how a stakeholder will react to meeting the
IMO targets and can determine the level of
support or opposition to decarbonisation.
3 Level of influence
This is related to the ability to affect the
achievement of the decarbonisation target and to
garner support or even opposition.
4Prior interest/involvement in
innovation activities
Stakeholders who have shown an interest in or
have participated in innovation activities in the
past can give insight into how to engage the
maritime sector in innovation interventions,
including barriers and opportunities. It can also
indicate their willingness to initiate, lead or
partner on an innovation intervention.
In addition, a general invitation to participate in the stakeholder engagement process
was issued on social media platforms, and those who reached out and were identified as
appropriate were included in the interviews. The purposive identification and selection of
Sustainability 2022,14, 2185 9 of 27
stakeholders led to the mapping of 38 organisations that represented all major operations
across the maritime sector in Cyprus.
The organisations were further analysed and grouped into eight clusters based on the
area of their operations within the maritime sector in Cyprus, as shown in Table 3, using
input from previous fieldwork and existing sectoral expertise within the project partners.
Table 3. Clusters of Stakeholders.
Main Cluster No. of Stakeholders Interviewed Area of Operations Description
1 Six Shipmanagement companies
Companies which manage ships
(crewing, technical, etc.) on behalf of
the owners
2 Six Ship owning companies Companies that own or manage their
fleet (small to large fleet)
3 Nine Ship related companies
Companies providing services to the
shipping industry in Cyprus
and abroad
4 Three Port operators
Private companies operating the most
significant commercial port of
Cyprus (Limassol)
5 Two Public authorities Government departments related to
shipping and decarbonisation
6 Six Industry associations Professional associations related to the
shipping industry
7 Three Academia and Research Organisations with degrees offered
and/or research in the maritime field
8 Three Energy companies Public and Private companies within
the offshore Oil and Gas industry
Various topics were covered through the series of interviews, such as current activi-
ties related to decarbonisation, needs and challenges associated with achieving zero net
emission maritime hubs, and market trends related to decarbonisation. A set of interview
guidelines were prepared for use during the semi-structured interviews. These were en-
hanced and modified based on the baseline review during the System Mapping step, to
better align them with the maritime sector in Cyprus and its stakeholders. The guidelines
were structured to capture relevant information and feedback related to decarbonisation
and included the following thematic areas:
setting the scene;
current activities related to decarbonisation;
needs related to achieving zero net emission maritime hubs;
market trends;
challenges to achieving zero net emission maritime hubs.
Questions were developed to ensure that they were specific and open-ended wher-
ever possible, to avoid simple “yes” or “no” answers. Extra prompts were prepared to
be asked, if necessary, to obtain more information on one of the themes. Through the
interviews, the complex nature of the challenges faced by the sector and the necessary scale
for interventions were established.
The interviews were then analysed, and the results were used towards a working
vision for the decarbonisation of the maritime sector in Cyprus.
4.2. FRAME
Following the work undertaken in the INTENT phase, a preliminary set of needs
and barriers were identified, which were then explored further in the FRAME phase, with
Sustainability 2022,14, 2185 10 of 27
the aim of defining the areas in which innovation interventions will be deployed. This
phase was made up of various steps, in which we defined where and why we want to
deploy innovation, including determining what and who to leverage, and where to direct
innovations and interventions in order to achieve decarbonisation.
The step for identifying the focus areas is called sensemaking. Accordingly, sense-
making played an integral part in the project, as the stakeholders and the project team
jointly identified where transformation in the Cyprus maritime sector needs to take place
and how.
4.2.1. Workshop
The initial set of needs and barriers, as extracted from the interviews, were used as the
basis of a dedicated Needs Mapping workshop, held on 24 July 2020, with organisations
and broader stakeholders in the maritime sector in Cyprus. The stakeholders were split into
different groups based on their background to achieve a combination of NGOs, research
units, private companies, etc., in each team. Each team was provided with two different
tools. The workshop utilised the EIT Climate-KIC Visual toolbox for system innovation [
62
],
and specifically the canvases, ‘Fishing for Barriers’ (Figure 1) and ‘Future Radars’ (Figure 2).
The ‘Fishing for Barriers’ tool helps the user to define a list of barriers (problems and their
causes) for the deployment of innovations that would facilitate the decarbonisation of the
maritime sector in Cyprus. To do this, the participants were given different coloured sticky
notes with which to complete the canvas. Each colour represented a focus area in which
barriers were identified, whereby orange represented the area of policy and regulation, pink
represented operations, green represented education and skills, and yellow represented
technical solutions.
Sustainability2022,14,xFORPEERREVIEW10of28
aimofdefiningtheareasinwhichinnovationinterventionswillbedeployed.Thisphase
wasmadeupofvarioussteps,inwhichwedefinedwhereandwhywewanttodeploy
innovation,includingdeterminingwhatandwhotoleverage,andwheretodirectinno
vationsandinterventionsinordertoachievedecarbonisation.
Thestepforidentifyingthefocusareasiscalledsensemaking.Accordingly,sense
makingplayedanintegralpartintheproject,asthestakeholdersandtheprojectteam
jointlyidentifiedwheretransformationintheCyprusmaritimesectorneedstotakeplace
andhow.
4.2.1.Workshop
Theinitialsetofneedsandbarriers,asextractedfromtheinterviews,wereusedas
thebasisofadedicatedNeedsMappingworkshop,heldon24July2020,withorganisa
tionsandbroaderstakeholdersinthemaritimesectorinCyprus.Thestakeholderswere
splitintodifferentgroupsbasedontheirbackgroundtoachieveacombinationofNGOs,
researchunits,privatecompanies,etc.,ineachteam.Eachteamwasprovidedwithtwo
differenttools.TheworkshoputilisedtheEITClimateKICVisualtoolboxforsystemin
novation[62],andspecificallythecanvases,‘FishingforBarriers’(Figure1)and‘Future
Radars’(Figure2).The‘FishingforBarriers’toolhelpstheusertodefinealistofbarriers
(problemsandtheircauses)forthedeploymentofinnovationsthatwouldfacilitatethe
decarbonisationofthemaritimesectorinCyprus.Todothis,theparticipantsweregiven
differentcolouredstickynoteswithwhichtocompletethecanvas.Eachcolourrepre
sentedafocusareainwhichbarrierswereidentified,wherebyorangerepresentedthe
areaofpolicyandregulation,pinkrepresentedoperations,greenrepresentededucation
andskills,andyellowrepresentedtechnicalsolutions.
Figure1.FishingforbarrierstoolDeVicenteLópez,JavierandMatti,Cristian(2016).Visualtoolbox
forsysteminnovation.Aresourcebookforpractitionerstomap,analyseandfacilitatesustainability
transitions.TransitionsHubseries.ClimateKIC,Brussels2016.
Figure 1.
Fishing for barriers tool De Vicente López, Javier and Matti, Cristian (2016). Visual toolbox
for system innovation. A resource book for practitioners to map, analyse and facilitate sustainability
transitions. Transitions Hub series. Climate-KIC, Brussels 2016.
The ‘Future Radars’ canvas was then used to map out the actions that are needed to
achieve a vision of net-zero emissions and tackle the barriers identified through the ‘Fishing
for Barriers’ canvas. Workshop participants were divided into five teams; some teams used
the ‘Future Radars’ tool to propose a possible path to decarbonisation by 2030, while the
remaining teams proposed possible paths to decarbonisation by 2050. The Future Radars
canvas is a type of backcasting tool, and it harnesses the user’s imagination to first travel
forward in time to an ideal future state of the Cyprus Maritime Sector (related to GHG
Sustainability 2022,14, 2185 11 of 27
emissions) and then build the pathways towards this state. Workshop participants were
thus asked to ‘look back’ on the path that led to a future decarbonised Maritime Sector and
propose the steps that would allow them to achieve it.
Sustainability2022,14,xFORPEERREVIEW11of28
Figure2.FutureRadarstoolDeVicenteLópez,JavierandMatti,Cristian(2016).Visualtoolboxfor
systeminnovation.Aresourcebookforpractitionerstomap,analyseandfacilitatesustainability
transitions.TransitionsHubseries.ClimateKIC,Brussels2016.
The‘FutureRadars’canvaswasthenusedtomapouttheactionsthatareneededto
achieveavisionofnetzeroemissionsandtacklethebarriersidentifiedthroughthe‘Fish
ingforBarriers’canvas.Workshopparticipantsweredividedintofiveteams;someteams
usedthe‘FutureRadars’tooltoproposeapossiblepathtodecarbonisationby2030,while
theremainingteamsproposedpossiblepathstodecarbonisationby2050.TheFutureRa
darscanvasisatypeofbackcastingtool,anditharnessestheuser’simaginationtofirst
travelforwardintimetoanidealfuturestateoftheCyprusMaritimeSector(relatedto
GHGemissions)andthenbuildthepathwaystowardsthisstate.Workshopparticipants
werethusaskedto‘lookback’onthepaththatledtoafuturedecarbonisedMaritime
Sectorandproposethestepsthatwouldallowthemtoachieveit.
4.2.2.Reconnaissance
Theresultsandoutcomesfromthepreviousstepsledtothecreationofeightproblem
spaces.Aproblemspaceisdefinedasanareawithinthesystemthatthestakeholdersare
interestedininterveningin,bytestinginnovationactionswithinit.Afteridentifyingthe
problemspaces,informationonpossibleinnovationinterventions,availableoremerging,
whichareappropriateforCyprus,werecollected,andthepossibleactorsforimplement
ingsuchinterventionswereidentified.Thefinaloutputofthisstepwasthedevelopment
ofanInnovationsPortfolio.
4.3.INNOVATIONPORTFOLIO
TheINNOVATIONPORTFOLIOisthethirdphaseoftheDeepDemonstrationspro
cess.Itaimstohelpkeystakeholdersofthemaritimesector,whoparticipatedinthepro
ject,tosupportrapid,sustainableandresilientdecarbonisationintheCyprusmaritime
sector.Todothis,theportfolioofinnovationactionswasdevelopedusingasetofdesign
principleswhichincludedtowhatextentaninnovationactionensuresfutureresilience,
inclusivity,environmentalprotection,enhancementofsocialcohesion,solidfinancialre
turnsandemploysstrategicriskmanagement.
Figure 2.
Future Radars tool De Vicente López, Javier and Matti, Cristian (2016). Visual toolbox for
system innovation. A resource book for practitioners to map, analyse and facilitate sustainability
transitions. Transitions Hub series. Climate-KIC, Brussels 2016.
4.2.2. Reconnaissance
The results and outcomes from the previous steps led to the creation of eight problem
spaces. A problem space is defined as an area within the system that the stakeholders are
interested in intervening in, by testing innovation actions within it. After identifying the
problem spaces, information on possible innovation interventions, available or emerging,
which are appropriate for Cyprus, were collected, and the possible actors for implementing
such interventions were identified. The final output of this step was the development of an
Innovations Portfolio.
4.3. INNOVATION PORTFOLIO
The INNOVATION PORTFOLIO is the third phase of the Deep Demonstrations pro-
cess. It aims to help key stakeholders of the maritime sector, who participated in the project,
to support rapid, sustainable and resilient decarbonisation in the Cyprus maritime sector.
To do this, the portfolio of innovation actions was developed using a set of design principles
which included to what extent an innovation action ensures future resilience, inclusivity,
environmental protection, enhancement of social cohesion, solid financial returns and
employs strategic risk management.
The results of the above stages were used to develop a vision and roadmap for the
decarbonisation of the Cyprus maritime sector through system innovation processes.
5. Results and Discussion
5.1. Interviews
Decarbonisation in the maritime sector is a complex problem; solutions require in-
novative approaches that benefit from different external actors’ engagement, knowledge,
and values, including governments and public authorities, researchers, and the private
sector [
63
]. Through purposeful and strategic interaction between researchers/innovators,
end-users and decision makers, the usability and legitimacy of the proposed innovation
Sustainability 2022,14, 2185 12 of 27
interventions are increased [
64
]. Moreover, there is increasing recognition that actively
involving stakeholders, including end-users, can ensure that the results and outcomes
of research and innovation are legitimate and ‘usable’. Furthermore, actively interacting
with ‘end-users’ can result in accessing more data, information, and resources not readily
available and obtaining actionable feedback in real time, resulting in improving the quality
of the proposed innovations. The project’s approach to stakeholder engagement, thus, had
the central objective of being responsive and relevant to the needs of the stakeholders in
the maritime sector to create benefits and value from the Deep Demonstrations process and
achieve systemic transformation.
The responses of the stakeholder interviews and the results from previous fieldwork
were transcribed, coded, and translated into a stakeholder analysis matrix (Table 4). The
stakeholder analysis matrix arranges the information and data gathered into a more concise
and systematised format, allowing for comparisons and clustering between and across the
different stakeholders (38 stakeholders coding SH1-SH36).
Table 4. Stakeholder Analysis coding.
Level of knowledge
Existing knowledge on decarbonisation in the maritime
sector, including IMO, EU policies; existing technologies;
potential future solutions.
Level of importance
How important decarbonisation is to the stakeholder’s
operations/strategy, now and in the near, mid- and
long term.
Willingness to engage
Level of willingness to collaborate and join innovation
interventions related to decarbonisation in the maritime
sector in Cyprus.
Available Resources
The resources, including financial, technical, human and
infrastructural, that the stakeholder can make available
towards innovation interventions related to
decarbonisation in the maritime sector in Cyprus.
A stakeholder analysis matrix was then created, leading to the resources versus will-
ingness to engage grid, which categorises the stakeholders in a three-by-three matrix,
where the dimensions are a given stakeholder’s willingness to engage in future innovation
projects, in order to catalyse the transition towards decarbonisation, and the stakeholder’s
resources (including financial, human, and infrastructure resources) that they can make
available towards future innovation projects in decarbonisation in the Cyprus maritime
sector. The resources versus willingness to engage grid can help determine which stake-
holders should be engaged and co-opted in the subsequent phases of the process. The grid
results in nine categories of stakeholders, are illustrated in Figure 3.
The stakeholder analysis matrix of the 38 participant stakeholders showed that, at this
early stage in the decarbonisation efforts, about 52% of the stakeholders engaged (20 out of
38 stakeholders) in the maritime sector in Cyprus currently have low levels of willingness to
engage in decarbonisation innovation projects (12 out of 38 stakeholders are in the low–low
category; 6 out of 38 stakeholders are in the medium–low category; and 2 out of 38 are
the high–low category). This is further reinforced by the fact that 60% (23 out of 38) of the
stakeholders engaged consider that decarbonisation is currently of low importance to their
daily operations.
Ten out of 38 of the stakeholders (26%) have high levels of willingness to engage in
innovation interventions, but different levels of available resources (6 out of 38 stakeholders
are in the high–high category; 2 are in the medium–high category; and 2 are in the
low–high
category). The remaining stakeholders (9 out of 38 or 22%) have medium levels of willing-
ness to engage in innovation interventions (4 out of 38 stakeholders are in the high–medium
category; 3 are in the medium–medium category; and 1 is in the low–medium category).
Sustainability 2022,14, 2185 13 of 27
Sustainability2022,14,xFORPEERREVIEW13of28
Figure3.Stakeholder(SH1SH38)analysismatrixbasedona‘resourcesversuswillingnesstoen
gage’grid.
Thestakeholderanalysismatrixofthe38participantstakeholdersshowedthat,at
thisearlystageinthedecarbonisationefforts,about52%ofthestakeholdersengaged(20
outof38stakeholders)inthemaritimesectorinCypruscurrentlyhavelowlevelsofwill
ingnesstoengageindecarbonisationinnovationprojects(12outof38stakeholdersarein
thelow–lowcategory;6outof38stakeholdersareinthemedium–lowcategory;and2out
of38arethehigh–lowcategory).Thisisfurtherreinforcedbythefactthat60%(23outof
38)ofthestakeholdersengagedconsiderthatdecarbonisationiscurrentlyoflowim
portancetotheirdailyoperations.
Tenoutof38ofthestakeholders(26%)havehighlevelsofwillingnesstoengagein
innovationinterventions,butdifferentlevelsofavailableresources(6outof38stakehold
ersareinthehigh–highcategory;2areinthemedium–highcategory;and2areinthe
low–highcategory).Theremainingstakeholders(9outof38or22%)havemediumlevels
Figure 3.
Stakeholder (SH1-SH38) analysis matrix based on a ‘resources versus willingness to
engage’ grid.
Shipping companies are more likely to engage in sustainable activities when they are
perceived to be aligned, rather than in conflict with their existing competitive strategies,
capabilities, and resources [
65
]. The shipping company’s stakeholder attitude, pressure,
and behavioural control directly affect the adoption of sustainable shipping practices and
indirectly influence business performance. Bulk shipping companies, particularly tanker
shipping companies, are exposed to more significant safety risks or engaged in operations
with a greater environmental impact; their stakeholders may exert significant pressure
on them to implement sustainable shipping practices [
66
]. Thomas [
67
] showcased the
willingness of the collaboration of a network of representatives for significant stakeholders
in international trade, who evaluated positively, and are willing to invest, develop, and test
the prototype of the Shipping Information Pipeline prototype. Yuen et al. [
68
] suggested
that sustainable shipping practices create functional, social, and emotional values that
could lead to shippers’ satisfaction, and subsequently, loyalty, and willingness to pay more
for a shipping service.
Sustainability 2022,14, 2185 14 of 27
In addition, a further analysis of the stakeholder interviews indicates that stakeholders
consider that to meet the targets in the IMO’s Initial Strategy and achieve decarbonisa-
tion more widely; a mix of technological, operational and regulatory interventions will
be required. The findings agree with the existing literature that suggests that a mix of
technologies should be used, resulting in significant reductions [
16
,
19
]. This is illustrated by
Figure 4, which provides an overview of the most common terms referred to by stakehold-
ers related to decarbonisation. Under technological solutions, stakeholders pointed to the
need for alternative fuels and the associated infrastructure, with batteries and renewable
energy such as solar PV as potential options for further innovation interventions.
Sustainability2022,14,xFORPEERREVIEW14of28
ofwillingnesstoengageininnovationinterventions(4outof38stakeholdersareinthe
high–mediumcategory;3areinthemedium–mediumcategory;and1isinthelow–me
diumcategory).
Shippingcompaniesaremorelikelytoengageinsustainableactivitieswhentheyare
perceivedtobealigned,ratherthaninconflictwiththeirexistingcompetitivestrategies,
capabilities,andresources[65].Theshippingcompany’sstakeholderattitude,pressure,
andbehaviouralcontroldirectlyaffecttheadoptionofsustainableshippingpracticesand
indirectlyinfluencebusinessperformance.Bulkshippingcompanies,particularlytanker
shippingcompanies,areexposedtomoresignificantsafetyrisksorengagedinoperations
withagreaterenvironmentalimpact;theirstakeholdersmayexertsignificantpressureon
themtoimplementsustainableshippingpractices[66].Thomas[67]showcasedthewill
ingnessofthecollaborationofanetworkofrepresentativesforsignificantstakeholdersin
internationaltrade,whoevaluatedpositively,andarewillingtoinvest,develop,andtest
theprototypeoftheShippingInformationPipelineprototype.Yuenetal.[68]suggested
thatsustainableshippingpracticescreatefunctional,social,andemotionalvaluesthat
couldleadtoshippers’satisfaction,andsubsequently,loyalty,andwillingnesstopay
moreforashippingservice.
Inaddition,afurtheranalysisofthestakeholderinterviewsindicatesthatstakehold
ersconsiderthattomeetthetargetsintheIMO’sInitialStrategyandachievedecarboni
sationmorewidely;amixoftechnological,operationalandregulatoryinterventionswill
berequired.Thefindingsagreewiththeexistingliteraturethatsuggeststhatamixof
technologiesshouldbeused,resultinginsignificantreductions[16,19].Thisisillustrated
byFigure4,whichprovidesanoverviewofthemostcommontermsreferredtobystake
holdersrelatedtodecarbonisation.Undertechnologicalsolutions,stakeholderspointed
totheneedforalternativefuelsandtheassociatedinfrastructure,withbatteriesandre
newableenergysuchassolarPVaspotentialoptionsforfurtherinnovationinterventions.
Figure4.Mostcommontermsmentionedbyinterviewees.
Shipdesignwasanotherareaidentifiedbythestakeholdersforfurthertechnological
innovation,includinghulldesign,propellers,flattenerrotors,etc.,whichcanbetiedback
totheIMO’sEEDI.However,itisclearfromstakeholders’responses(47%ofinterview
ees)thatanappropriatepolicyandregulatoryregime,withamixoftaxes,levies,and
incentives,willbeessentialtoachievedecarbonisation.Policyinitiativesareneededto
promotetheintroductionofrenewablemarinefuels[69].Lastly,itisimportanttonote
Figure 4. Most common terms mentioned by interviewees.
Ship design was another area identified by the stakeholders for further technological
innovation, including hull design, propellers, flattener rotors, etc., which can be tied back
to the IMO’s EEDI. However, it is clear from stakeholders’ responses (47% of interviewees)
that an appropriate policy and regulatory regime, with a mix of taxes, levies, and incentives,
will be essential to achieve decarbonisation. Policy initiatives are needed to promote the
introduction of renewable marine fuels [
69
]. Lastly, it is important to note that one of the
key solutions for decarbonisation that stakeholders pointed to, was the switch to LNG, with
approximately 63% of stakeholders considering it the main solution (at least until 2030)
towards meeting the IMO’s targets. As conventional LNG is not a zero-carbon fuel, this
reliance on LNG demonstrates the scale of the challenge in achieving ‘Zero-Net Emissions,
Resilient Maritime Hubs in Cyprus’. This result is supported by other studies where
maritime stakeholders were interviewed, and an analysis of their interviews resulted in
the stakeholder’s identification of LNG as a short-term solution, and not long term [
33
].
Similarly, Swedish stakeholders’ research states that groups rank LNG and HFO the highest
from a list of alternative marine fuels followed by fossil methanol, and then various biofuels
(LBG, renewable methanol, and HVO) [
69
]. Other studies have also ranked LNG highest
amongst others [70].
They have also stated that policy initiatives are needed to promote the introduction of
renewable marine fuels [67].
LNG has been proven to be a suitable fuel for the maritime sector [
71
], as it has been
used as a main fuel on-board the LNG carriers for 58 years [
72
]. LNG-fuelled ships are
shown to have a 20–25% reduction in CO
2
emissions [
73
]. The EU has promoted it through
the European Commission’s new infrastructure law, requiring ports to install gas refuelling
infrastructure for ships, encouraging this action [
74
]. EU promotes the use of LNG for
marine fuels, as the IMO has placed a 0.5% sulphur cap on ships, which contributes to
Sustainability 2022,14, 2185 15 of 27
reducing air pollution and the protection of public health. Yet, even if it has reduced
CO
2
emissions, LNG can be associated with methane gas emissions. This can result from
methane slip from various actions, including the extraction of natural gas [
75
], cleaning
and liquefaction processes, transport, and re-loading, etc [
76
]. Methane is a greenhouse
gas, with a greater warming potential than CO
2
; thus, methane slip can enhance the
greenhouse effect.
Methane emissions have been in the priority initiatives of the European Green Deal.
Thus, the European Commission has adopted the EU Methane Strategy [
77
]. The strategy
sets out measures on how to cut methane emissions from methane leaks from the energy
sector, including fossil fuel production sites, as well as the emissions from ships.
5.2. Vision
A vision for a zero-net emissions, resilient maritime sector in Cyprus, was defined
based on the outcomes of steps 4.1 and 4.2 of the methodology. The vision, as co-created
with the local stakeholders, is: ‘to establish Cyprus as an international and competitive
testing and demonstration hub for innovative solutions that will support decarbonisation
across the marine, maritime and shipping industry’. Figure 5shows the categorisation of
priorities and actions for achieving Cyprus’ vision, as expressed by stakeholders.
Sustainability2022,14,xFORPEERREVIEW15of28
thatoneofthekeysolutionsfordecarbonisationthatstakeholderspointedto,wasthe
switchtoLNG,withapproximately63%ofstakeholdersconsideringitthemainsolution
(atleastuntil2030)towardsmeetingtheIMO’stargets.AsconventionalLNGisnotazero
carbonfuel,thisrelianceonLNGdemonstratesthescaleofthechallengeinachieving
‘ZeroNetEmissions,ResilientMaritimeHubsinCyprus’.Thisresultissupportedby
otherstudieswheremaritimestakeholderswereinterviewed,andananalysisoftheirin
terviewsresultedinthestakeholder’sidentificationofLNGasashorttermsolution,and
notlongterm[33].Similarly,Swedishstakeholders’researchstatesthatgroupsrankLNG
andHFOthehighestfromalistofalternativemarinefuelsfollowedbyfossilmethanol,
andthenvariousbiofuels(LBG,renewablemethanol,andHVO)[69].Otherstudieshave
alsorankedLNGhighestamongstothers[70].
Theyhavealsostatedthatpolicyinitiativesareneededtopromotetheintroduction
ofrenewablemarinefuels[67].
LNGhasbeenproventobeasuitablefuelforthemaritimesector[71],asithasbeen
usedasamainfuelonboardtheLNGcarriersfor58years[72].LNGfuelledshipsare
showntohavea20–25%reductioninCO
2
emissions[73].TheEUhaspromoteditthrough
theEuropeanCommission’snewinfrastructurelaw,requiringportstoinstallgasrefuel
linginfrastructureforships,encouragingthisaction[74].EUpromotestheuseofLNGfor
marinefuels,astheIMOhasplaceda0.5%sulphurcaponships,whichcontributesto
reducingairpollutionandtheprotectionofpublichealth.Yet,evenifithasreducedCO
2
emissions,LNGcanbeassociatedwithmethanegasemissions.Thiscanresultfromme
thaneslipfromvariousactions,includingtheextractionofnaturalgas[75],cleaningand
liquefactionprocesses,transport,andreloading,etc[76].Methaneisagreenhousegas,
withagreaterwarmingpotentialthanCO
2
;thus,methaneslipcanenhancethegreen
houseeffect.
MethaneemissionshavebeeninthepriorityinitiativesoftheEuropeanGreenDeal.
Thus,theEuropeanCommissionhasadoptedtheEUMethaneStrategy[77].Thestrategy
setsoutmeasuresonhowtocutmethaneemissionsfrommethaneleaksfromtheenergy
sector,includingfossilfuelproductionsites,aswellastheemissionsfromships.
5.2.Vision
Avisionforazeronetemissions,resilientmaritimesectorinCyprus,wasdefined
basedontheoutcomesofsteps4.1and4.2ofthemethodology.Thevision,ascocreated
withthelocalstakeholders,is:‘toestablishCyprusasaninternationalandcompetitive
testinganddemonstrationhubforinnovativesolutionsthatwillsupportdecarbonisation
acrossthemarine,maritimeandshippingindustry’.Figure5showsthecategorisationof
prioritiesandactionsforachievingCyprus’vision,asexpressedbystakeholders.
Figure5.CategorisationofprioritiesandactionsforachievingCyprus’vision,asexpressedbystake
holders.
Figure 5.
Categorisation of priorities and actions for achieving Cyprus’ vision, as expressed by
stakeholders.
Stakeholders expressed interest in various priorities under four thematics, namely
policy, education, technical/design, and operational aspects. This is broadly in line with the
literature, which points to a mix of technological, operational, policy and market measures
for achieving decarbonisation [
20
]. Each priority had a different level of engagement or
endorsement from the stakeholders. Furthermore, local stakeholders assigned a different
weight to the difficulty and complexity of implementing such priorities in Cyprus.
From the categorisation of the various actions and the discussions with the stakehold-
ers, it is apparent that as of today, and in the upcoming years (2022–2025), Cyprus should
focus on designing actions around retrofit and efficiency measures and on how to improve
the technical skills and the innovation culture of the human capital of Cyprus. A core prior-
ity area that emerges is thus the education, training and reskilling of the maritime labour
force, as there is not enough know-how in the maritime sector in Cyprus for developing,
but also implementing, technologies and solutions in support of decarbonisation. Over a
longer horizon (2020–2030), Cyprus should focus on actions that promote alternative fuels,
renewable energy sources, storage, and automation. This differentiation arises primarily
because Cyprus does not currently possess the resources (i.e., lack of established maritime
Sustainability 2022,14, 2185 16 of 27
research centres) to focus on such actions that will also have a larger impact, something
that the government of Cyprus is working on.
Furthermore, through discussions with stakeholders, two types of horizontal actions
are envisaged:
clustering
: Under this horizontal action, activities that enable the creation of a critical
mass of researchers and innovators will be sought after, focused primarily on, but not
limited to, the priorities set out in Figure 5(i.e., summer schools, training visits, etc);
develop and demonstrate
: As Cyprus does not currently possess the critical mass
needed to discover a plethora of solutions, or a large enough industrial base to de-
velop and deploy new solutions, Cyprus should focus on becoming a testbed for the
development and demonstration of solutions; primarily of solutions from abroad, and
at a later stage of “in-house” developed solutions.
Cyprus should establish itself as a demonstration hub facilitating the testing and
demonstration of new innovations, enabling their large-scale adoption, thus supporting
the maritime industry reducing its carbon emissions.
5.3. Workshop
The analysis of the results of the ‘Fishing for Barriers’ tool, Figure 6, identified the
following current problems and barriers to the decarbonisation of the maritime sector in
Cyprus, which centre around a lack of:
appropriate policy and legislative framework;
national targets for decarbonisation in the Cyprus shipping registry (the IMO targets
have not been included in local legislation);
infrastructure, industrial base, and innovation capital in Cyprus;
incentives for innovative companies and start-ups to work in a lack of a skilled workforce;
vision, the maritime is sector overly focused on barriers and does not see decarbonisa-
tion as a new business opportunity;
willingness to engage and interest in decarbonisation by local stakeholders;
appropriate culture and innovation mindset;
suitable ship designs and energy/technological solutions that can be adopted immedi-
ately or in the short term to ensure that rapid decarbonisation is achieved;
supporting infrastructure (e.g., fuel infrastructure), as current infrastructure is very
costly to upgrade;
connection between the maritime sector and the general public—as a result, there is
no pressure from the public to move towards decarbonisation;
funds—decarbonisation is considered costly and of limited added value.
Our findings are supported by [
78
80
], which in their evaluation of the barriers to low
carbon shipping, have identified sunk costs and path dependence in the shipping sector,
split incentives, and access to finance [20] as important barriers.
An analysis of the results of the ‘Future Radar’ exercise, Figure 7, indicated that
stakeholders in Cyprus consider that the following must be put in place to support decar-
bonisation efforts:
innovative business and finance models that ensure sustainability of decarbonisation
actions;
mandatory decarbonisation awareness training of crews and port staff;
policies to encourage ships that use alternative fuels;
regulations—minimum emission requirements—carbon tax, as a minimum for the
IMO decarbonisation target to be enshrined in law;
alternative fuels produced through renewable energy;
finance and funds for research and development of greener technologies in ship
engines;
shipping workforce that fosters innovation and experimentation to capitalise on the
good reputation Cyprus for being service-oriented;
Sustainability 2022,14, 2185 17 of 27
development of innovative service offerings, e.g., decarbonisation as vice techno-
economical assessments to support the rapid adoption of zero emission vessels;
demonstration of innovative fuels, technology, and other technical solutions;
operations and logistics optimisation related to decarbonisation.
In addition to the stakeholder workshop and interview analysis, our desk research
identified similar requirements across the international maritime sector, as reported
by [20,23,79,81,82]
. Stakeholders highlight the lack of policy and existing regulatory tools, fi-
nancial incentives for shipping decarbonisation, and lack of enforcement framework [
45
,
62
]
as barriers to decarbonisation. The lack of training and skilled workforce is another issue
that concerns the stakeholders in Cyprus and the international community [
64
,
83
]. Training
and re-skilling is considered essential for the systemic transformation of the maritime
sector towards decarbonisation, as it targets the culture and the innovation mindset of the
workforce [84].
5.4. Problem Spaces and Interventions
The eight problem spaces where interventions would need to take place to address
the decarbonisation of the maritime sector are set out in Table 5.
Sustainability2022,14,xFORPEERREVIEW17of28
connectionbetweenthemaritimesectorandthegeneralpublic—asaresult,thereis
nopressurefromthepublictomovetowardsdecarbonisation;
funds—decarbonisationisconsideredcostlyandoflimitedaddedvalue.
Ourfindingsaresupportedby[78–80],whichintheirevaluationofthebarriersto
lowcarbonshipping,haveidentifiedsunkcostsandpathdependenceintheshipping
sector,splitincentives,andaccesstofinance[20]asimportantbarriers.
Figure6.Tool,fishingforbarriersusedbyteams1and4.
Ananalysisoftheresultsofthe‘FutureRadar’exercise,Figure7,indicatedthatstake
holdersinCyprusconsiderthatthefollowingmustbeputinplacetosupportdecarboni
sationefforts:
innovativebusinessandfinancemodelsthatensuresustainabilityofdecarbonisation
actions;
mandatorydecarbonisationawarenesstrainingofcrewsandportstaff;
policiestoencourageshipsthatusealternativefuels;
regulations—minimumemissionrequirements—carbontax,asaminimumforthe
IMOdecarbonisationtargettobeenshrinedinlaw;
alternativefuelsproducedthroughrenewableenergy;
financeandfundsforresearchanddevelopmentofgreenertechnologiesinshipen
gines;
shippingworkforcethatfostersinnovationandexperimentationtocapitaliseonthe
goodreputationCyprusforbeingserviceoriented;
Figure 6. Tool, fishing for barriers used by teams 1 and 4.
Sustainability 2022,14, 2185 18 of 27
Figure 7. Future for radars tool used by teams 1 and 4.
5.5. Barriers to Transformation
Our analysis of the data and information collected through our research indicates cer-
tain barriers that hinder the transition of the shipping sector in Cyprus to net zero emissions.
5.5.1. Policy Barriers
Policy development in Cyprus is slow and cautious, yet it can influence the shipping
sector and lead to a sustainable transition. Laws, regulations, programmes, incentives, etc.,
are all considered to be under the umbrella of public policy. Still, public policies in Cyprus
create a great barrier for the zero-net emissions’ transitions for the following reasons:
Sustainability is not considered a priority by policymakers, as the regulatory framework in
Cyprus fails to link the maritime sector to sustainability.
Legislative processes in Cyprus related to sustainability are “re-active”, thus they are
responding to market needs rather than leading it.
Policymaker risk aversion, as they fear losing customers if any sustainability require-
ments are imposed.
There are no incentives for innovative technology adoption, as those who want to inno-
vate will be burdened by the cost of innovation without any appropriate reward for
their actions.
Sustainability 2022,14, 2185 19 of 27
Table 5. Problem Spaces and Innovation Positions.
Problem Space Positions (Where Shall We Intervene?)
Clustering (coalitions/lobbying)
Discussions are taking place by national government
to design new incentive/funding schemes up to 2030
Education/talent attraction
The Ministry of Education, universities and other
relevant bodies design new syllabi
The Human Resource Development Agency and
Deputy Ministry of Shipping develop new lifelong
learning programmes and Continuing Professional
Development (CPD) requirements for seafarers
Schemes and policy design for attracting talent
including students, industry experts, start-ups and
established companies
Innovative finance schemes
Discussions are taking place by national government
to design new incentive/funding schemes up to 2030
Banks design new bonds/loans, including ECB and CY
central bank and ministry of finance
Effective policy and regulation
Where the National Energy and Climate Plan is being
designed so as to include decarbonisation of shipping
Where tenders for expertise or studies are
required/being commissioned and/or smart
specialisation strategy being developed
Technology demonstration
development
Schemes and policy design for attracting talent
including students, industry experts, start-ups and
established companies
Business models (expand our
competitive advantage)
Discussions are taking place by national government
to design new incentive/funding schemes up to 2030
Where tenders for expertise or studies are
required/being commissioned and/or smart
specialisation strategy being developed
Application for feasible
decarbonised energy solutions
Schemes and policy design for attracting talent
including students, industry experts, start-ups and
established companies
Discussions are taking place by national government
to design new incentive/funding schemes up to 2030
Similarly, the literature states that it is crucial to adopt fiscal instruments and incentives.
For example, the government should offer financial incentives for green shipping, e.g.,
via public procurement and temporary exemptions of electricity taxes for electric ships
or reduce trade tariffs for energy-efficient technologies [
57
,
85
]. Such national or regional
incentive schemes could lead to carbon pricing at a global level. The impact of states and
regions that act as first-movers and apply firmer targets at a national or regional level has
been debated, however [
21
] demonstrated that it can play a vital part in achieving progress
at a global level. Without applicable national and supra-national policies that can deliver
strong incentives and mechanisms that favour the adoption of low-carbon technologies,
ambitious targets and strict regulations can be challenged by relevant industry stakeholders.
Consequently, any targets and mitigation measures imposed on the industry must be
accompanied by incentives and supporting policies, if they are to be effective and widely
accepted by stakeholders [20].
5.5.2. Technology Barriers
Technology is derived from the application of scientific knowledge for practical pur-
poses, like developing tools, equipment, machinery, and products that meet human needs.
Sustainability 2022,14, 2185 20 of 27
Consequently, technology is also needed for the decarbonisation of the maritime sector,
and it creates barriers in the shipping sector in Cyprus:
Technology adoption and innovation actions are delayed due to the slow legislative pro-
cesses related to sustainability.
Low maturity level of new technologies as the decarbonisation of the maritime sector is a
new topic compared to other sustainability initiatives such as pollution control and
uncertainty on which technologies will be dominant in the future.
Companies are reluctant to invest in technology adoption and innovation actions, as the
costs are very high and can reduce companies’ profit.
Lack of incentives for the adoption of innovative technology.
Limited alignment between key stakeholders: for example, the shipping sector is not
aligned with ports on the quality and quantity of alternative fuels to be required in
the future, creating a barrier for investments on new innovative technologies on both
ships and ports.
In agreement with the above statements, technologies face several challenges, includ-
ing space requirements, cost, and infrastructure [86].
A better understanding of the potential for different fuel options is needed, and the
low maturity of technologies deserves further attention [87,88].
Additionally, the literature showcases that a closer collaboration of the maritime sector
with land-based activities will lead to synergies and new solutions. For instance, ballast
water solutions were firstly used in wastewater and water treatments [89].
5.5.3. Skills Barriers
According to the European Commission’s Cedefop glossary [
90
], skills refer to the
“ability to perform tasks and solve problems”, while competencies extend cognitive ele-
ments to encompass functional aspects, interpersonal attributes, and ethical values. OECD
produced an education working paper on “21st Century Skills and Competences for New
Millennium Learners in OECD Countries”, referring to the 21st century skills including
a wide range of skills, knowledge, work habits, and character traits that are critically im-
portant for someone’s success in today’s world [
91
]. Consequently, those skills are needed
to face the challenges of the 21st century arising from the digital transformation, creative
progress, and fast-paced changes.
Nonetheless, Cyprus is facing a brain drain, and at the same time, there is a lack
of local resources to support the envisaged development of the maritime sector in the
country. Shifting to new innovative technologies and actions for the decarbonisation of the
maritime sector in Cyprus will require new skillsets and capabilities that the local force
and the decision makers, directly involved in the transition, will need to be equipped with.
Accordingly, the above add up to the following barriers:
Lack of workforce with required skills to support the sustainability transition of the Cyprus
shipping sector. Due to the slow legislative processes related to sustainability, low
sustainability requirements are supported by a culture of low innovation in the ship-
ping sector in Cyprus, leading to an under-skilled workforce unable to support the
innovative sustainability transition of the sector.
Key stakeholders (policymakers, shipping companies, etc) lack skills for the ‘Cypriot economy
of the future’. The EU already imposed sustainability requirements upon all the sectors
within its member states. Yet, Cyprus’ educational institutions and structures are not
currently prepared for the sustainability requirements needed in the maritime sector.
Limited opportunities for attracting/retaining a talented workforce due to a lack of diversity
of jobs in the maritime sector in Cyprus.
A skilled workforce is required for substantial technology transitions to be success-
ful [
92
]. Current reports on skill trends in marine and maritime industries stress that these
industries are experiencing technological and environmental transitions with far-reaching
repercussions. They emphasise three key drivers of change: digitisation and automation,
Sustainability 2022,14, 2185 21 of 27
the drive for greater environmental sustainability, and global competition and upgrading
into more knowledge-intensive activities. They also emphasise the problems of attracting
young people into the sector. They resulted in the adoption of education and training
systems to respond to the growth of new technologically related skills. Opportunities for
clusters might limit such challenges. The provision of a multi-user boatyard that SMEs
could rent and share, linked to innovation centres, would be incredibly beneficial, by
allowing knowledge sharing and skilled labour pooling [93].
5.5.4. Barriers of Organisational Structure
In the digital transformation and information age, information is easily flowing among
people of different groups, setting the pace of transformation. However, the flow of
information must be moving linearly with decision making within public and private
organisations. This is not the case in Cyprus, creating various barriers:
Lack of cross-departmental collaboration, as future visions might be conflicting and lack
a common understanding aligned across governmental departments on sustainability
issues and their integration within legislation.
Long-term future outlook for shipping companies does not prioritise environmental topics, as
they have the tendency to focus on topics directly related to economic competitiveness
in the market, and compliance with legislation. As there is a limited amount of binding
legislation related to environmental and social topics, and the existing legislation may
be vague, most companies might be compliant with the legislation, yet these do not
go far enough.
5.5.5. Barriers of Citizen and Stakeholder Engagement
The EU is now raising the issue of public engagement in decision making, especially
when it is related to environmental decisions, as seen also in the 2003/35/EC directive of
the European Parliament and Council [
94
]. Thus, for the transition of the maritime sector
in Cyprus towards a zero-carbon paradigm by 2050, public engagement and collaboration
among various stakeholders (businesses, policymakers, citizens, etc.) are essential. As a
small country, Cyprus has strong linkages between various stakeholders, yet:
There is no shared vision for the country’s maritime sector, between various stakeholder
groups, leading to each stakeholder working in isolation and being out of sync with the
vision of the rest of the stakeholders. This is also a result of the lack of a regular space
for stakeholder discussion, leading to the needs of each stakeholder being ignored by
the rest of the stakeholders.
Currently, decision making in business/shipping companies does not necessarily include
multi-stakeholders/citizens.
Low citizen engagement by policymakers; even if it is mentioned within the EU legislation,
public consultation comes at a late stage in the policy-making process.
The literature identifies the importance of stakeholder engagement in the decision
making processes [
28
,
31
,
59
,
66
,
69
]. Alexandropoulou et al. [
31
] mention that stakehold-
ers have drastically different views and different frames for understanding the problem;
incorporating their perspectives is crucial. Because of the different stakeholders’ perspec-
tives, they all have their agendas and priorities. In complex situations and problems, as
sustainability is, the problem definition might focus after adopting a future vision. In
such a case, the vision is the seed for the challenge, and not its result. Visioning should
be a participatory tool where stakeholders from broad backgrounds ensure a richer and
broader vision.
5.5.6. Behavioural Change—Mindset Shift Barriers
Behaviour is the way in which one acts or conducts oneself, especially towards others.
Our current behaviours are often dictated by our perceptions, wishes, and future outlooks.
A mindset shift consists of a change to general attitudes, and how one typically thinks and
behaves in relation to events occurring in their environment or events that come to their
Sustainability 2022,14, 2185 22 of 27
attention. In Cyprus, the mindset shift is a crucial barrier for moving the maritime sector
towards a net-zero carbon transition because:
Cyprus has a primarily centralised governance system, with decisions taken centrally by
the government and the higher management in the country.
Cyprus can be defined as being mostly a follower and not a first mover, as it mostly fol-
lows either the EU existing guidelines or following the best practice examples on an
international level.
Economic actors’ behaviour is driven by the values of the current financial and decision making
system which is often in contradiction to what is needed for a better future in general.
The maritime sector is not considered an integral part of Cypriot citizens’ identity, even if it
is an island with a strong maritime sector.
Sustainability is not a priority for Cypriot citizens during decision making.
Knowledge is one important mechanism that motivates mindset, attitude, and aware-
ness, and all these factors are mechanisms driving behavioural change [
95
], which can lead
to sustainability [96].
5.5.7. Business Model Barriers
A business model is the core strategy for the profitable operation of a business. The
model identifies revenue sources, target markets, services/products offered, and a financing
plan, aiming to have a social and environmental impact. Nonetheless, Cyprus lacks new
business models that can support the cost-effective adoption of new innovative technologies
and actions for the following reasons:
There is a need for innovative businesses to focus on “Shipping Decarbonisation as-a-
service” rather than “shipping services provision”.
The current generation of entrepreneurs in Cyprus does not engage adequately with the
maritime sector in Cyprus.
There is a need for new sustainable business models in Cyprus to deliver profit and new
innovative technologies and actions in the maritime sector.
5.5.8. Finance Barriers
Finance encompasses different ways of managing money, including the provision of
funding or the flow of capital between entities for investment, borrowing, lending, etc. The
current financial landscape in Cyprus is placing some barriers relating to the transition of
its maritime sector to zero-carbon emissions:
The maritime sector is economically thriving, showing its strength, yet that money is
not reinvested in sustainability innovation.
The current financial system is mainly focused on generating economic value and returns.
Financial institutions could build green finance programmes to encourage sustainable
shipping. Papandreou et al. [
27
] consider that several initiatives are needed to create the
appropriate financial framework to raise the necessary funds to bridge the finance gap
needed for sustainable investments.
If carefully designed, additional policies can help address market barriers and the
burden of a potential carbon price. To boost access to finance for companies willing to adopt
low-carbon technology, governments can also create favourable conditions for financial
instruments such as “Blue Bonds” that aim to channel private finance towards “green”
shipping. Shipping stakeholders could be further encouraged to assess the carbon footprint
of their supply chain and target zero-carbon shipping options [27].
Scaling up financial resources and investments will also be an essential enabler. This
is a role that regional and national development banks can undertake, e.g., the European
Investment Bank (EIB), and ING signed an agreement to support the European shipping
market with USD 370 million worth of green investment [
97
]. Green bonds are another
potential instrument for significant infrastructural investments [20].
Sustainability 2022,14, 2185 23 of 27
Subsequently, if acted upon, these current barriers can become very powerful enablers
of transformation, as they will influence various systems and have exponential impact.
Therefore, we consider them as ‘levers’ for transformation.
5.6. INNOVATION PORTFOLIO
An initial innovation portfolio was designed based on the results of the research, with
the following priority of interventions:
1.
Run regulatory sandboxes to test the implementation of technologies/other innova-
tion that the current legislator framework does not allow.
2.
Implementation of demonstration projects: any projects that are mature enough to
“leave the lab”, but not mature enough to secure funding on commercial terms, will
be able to “test” their solution in Cyprus.
3.
Inclusion of the decarbonisation of shipping in the National Energy and Climate Plan.
4.
The enactment of regulations for minimum emission requirements or carbon tax, and
as a minimum for the IMO decarbonisation target to be enshrined in law in Cyprus.
5.
Creation of multi-stakeholder groups, bringing together technology innovators and
scientists/professionals/citizen groups, to ensure cross-fertilisation around various
areas (e.g., circularity, biodiversity, etc).
6.
Bunkering Hub: Cyprus to become a regional bunkering hub for any fuel, and, in
particular, alternative renewable fuels.
7.
Finance and funds should be directed towards the research and development of
greener technologies in ship engines.
8. Decarbonisation awareness training of crews and port.
9.
Capitalisation of the good reputation that Cyprus has for being service-oriented, and
developing new innovative service offerings, e.g., decarbonisation as a service.
6. Conclusions and Further Agenda
Achieving decarbonisation in the maritime sector is a multifaceted challenge, requiring
a portfolio of innovative solutions across the entire industry. The current work was under-
taken through the Deep Demonstrations project on ‘Zero-Net Emissions, Resilient Maritime
Hubs in Cyprus’ funded by EIT Climate-KIC. It was established to mobilise actors in the
maritime sector in Cyprus to work together to achieve decarbonisation within the sector
through systems innovation and a participatory approach. This paper presented research
undertaken to identify the possible ways in which Cyprus can support the decarbonisation
of its maritime sector, through the use of participatory approaches and systems innovation.
Our findings and analysis show that stakeholders within the maritime sector in Cyprus
identify that a lack of: (1) an appropriate policy and legal framework that will support rapid
decarbonisation; (2) appetite and innovation capital in the maritime sector; (3) the appro-
priate skillset and talent in the local workforce; (4) ship designs and energy/technological
solutions that can be adopted immediately or in the short term; and (5) the necessary
bunkering infrastructure; are the main barriers to achieving decarbonisation.
We suggest the following levers of change, where actions can be taken to catalyse the
decarbonisation of the maritime sector in Cyprus:
1. Policy.
2. Technology.
3. Skills.
4. Organisational Structures.
5. Business Models.
6. Finance.
7. Information Flows.
Thus, the maritime sector in Cyprus requires the following if it is to achieve rapid
decarbonisation: innovative business and finance models that ensure the sustainability
of decarbonisation actions; a modern shipping workforce that fosters innovation and
experimentation; the demonstration of innovative fuels, technology and other technical
Sustainability 2022,14, 2185 24 of 27
solutions (e.g., operations and logistics optimisation) related to decarbonisation; finance and
funds for research and development of greener technologies in ship engines; an appropriate
policy and legal framework; and to capitalise on the good reputation that Cyprus has for
being service-oriented, and develop new innovative service offerings, e.g., decarbonisation
as a service.
A closer collaboration of the maritime sector with land-based activities will lead
to synergies and new solutions, building on previous successful collaborations, such as
the development of scrubbers and other land wastewater techniques used for ballast
water treatment.
Cyprus’ maritime sector can be decarbonised, but it needs time, finance, and coop-
eration between key stakeholders. Consequently, the sector is in a unique position to
contribute to climate change mitigation by leveraging its important role as a flag state and
directly reducing emissions, becoming leaders in climate innovation, and enacting a policy
and regulatory framework that supports the decarbonisation action of the ships that are
part of the Cyprus Ship Registry.
Author Contributions:
Conceptualization, methodology, analysis, O.N., L.M.S., A.M. and A.G.C.;
writing, O.N., L.M.S. and A.M.; writing—review and editing, O.N. and L.M.S.; visualization, O.N.,
L.M.S. and A.G.C.; supervision, A.G.C. All authors have read and agreed to the published version of
the manuscript.
Funding:
This research was funded by EIT Climate-KIC, the EU’s leading climate innovation initia-
tive, through the “Deep Demonstration of Resilient, Net-Zero-Emissions Maritime Hubs” Project.
Informed Consent Statement:
Informed consent was obtained from all subjects involved in the study.
Data Availability Statement: Not applicable.
Acknowledgments:
The authors would like to acknowledge the assistance of Maria Loloni of EIT
Climate-KIC during the “Deep Demonstration of Resilient, Net-Zero-Emissions Maritime Hubs” Project.
Conflicts of Interest: The authors declare no conflict of interest.
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... Academics in shipping management studies (Korhonen et al., 2015;Nisiforou et al., 2022) consider this a significant challenge, because today, a large portion of the fleet still operates on heavy fuel oil. While GHG intensity reductions start gently from 2%, they exponentially increase in five yearly increments to 80%: (European Commission, 2023) To comply, the regulation includes the mandatory use of low-carbon and renewable fuels. ...
... Moreover, the high level of capital investment required for the installation of new engines and higher operational costs associated with using alternative fuels are far more expensive than conventional options (Serra, Bach et al., 2021;Yuen & Lim, 2016Cullinane & Yang, 2022Nisiforou et al., 2022). Additionally, researchers have frequently cited the lack of new infrastructure such as bunkers as a significant barrier to fuel adoption (Latapí et al., 2023) Evidently, there are still concrete issues to be resolved if the industry aims to decarbonise soon. ...
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In the European Union, shipping transportation has played a critical role in the exchange of goods, people, and ideas. Accounting for 40% of intra-EU trade today and contributing €54bn to the EU’s GDP, the industry is expected to only expand. However, a majority of ships operate on fuel oil, which emits carbon dioxide and make up 4% of the EU’s greenhouse gas emissions. With growing concern over climate change, the European Commission adopted the “Fit for 55” package aiming to reduce emissions by 55% by 2030. Part of this involves decarbonising shipping. For shipping companies, this means adapting corporate social responsibility practices with new regulations. On the basis of institutional theory, this qualitative study examines the effects of one of these regulations, the FuelEU Maritime proposal, on European shipping firms and their adoption of alternative fuels. By conducting interviews with representatives from companies headquartered in north, south, east, and western Europe, this research cross-sections the maritime industry’s response to the EU’s institutional influence. The results show that the FuelEU Maritime regulation indeed follows institutional theory by establishing the ‘rules of the game’ for firms. Most interviewees responded positively to the initiative, taking the opportunity to reduce emissions, develop industrial relations, and benefit the larger society. The findings also revealed several challenges in the uptake of alternative fuels: amidst inadequate infrastructure and investment, the regulation fails to establish a level-playing field in the competitive maritime market. Notably, the study exposes a lack of clarity and consistency on the institutional front. While the decarbonisation goal is welcomed for CSR, firms admit the green transition is not an equitable one. Consequently, this research proposes a model and deeper investigation into institutional theory to re-evaluate the execution of “game rules” on complex industries. The need for flexibility during this transitional time remains vital for shipping firms, as the ongoing phenomenon of decarbonisation continues to be studied carefully for future policies and management decisions.
... Decarbonisation of the maritime industry is a complex problem and the solutions will require interdisciplinary collaboration between various fields combined with innovation, the engagement of stakeholders, and regulatory, legislative, and even financial incentives [1,2]. Biofuels are considered to be the most promising option for lowering CO 2 emissions in the transportation sector, irrespective of the fact that their share in the total transportation fuel consumption is very low [3]. ...
... Some CH 4 may exist after the adsorption process, and so the mixture is sent to a flash column, where an appropriate pressure drop is applied to release the remaining CH 4 . The CO 2 is then released in the desorption column. The water is then recycled for more stable operation and less operational problems. ...
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This review paper examines the applicability of biogas and biomethane as potential maritime fuels and examines issues of these fuels from a supply chain perspective (from production to end use). The objectives are to identify: (1) the latest research, development, and innovation activities; (2) issues and key barriers related to the technology readiness to bring biogas/biomethane to market; and (3) commercialisation issues, including cost parity with natural gas (the main competitor). A survey of the literature was carried out based on research articles and grey literature. The PESTEL and SWOT analyses identified opportunities for these fuels due to the relevant regulations (e.g., Fit for 55; the recent inclusion of the Mediterranean Sea as a SECA and PM control area; MPEC 79), market-based measures, and environmental, social, and governance strategies. The potential of biomass feedstock is estimated to have a substantial value that can satisfy the energy needs of the maritime industry. However, production costs of biomethane are high; estimated to be 2–4 times higher compared to natural gas. The market is moving in the direction of alternative drop-in fuels, including liquefied and compressed biomethane (LBM and CBM) and biogas. In terms of potential market penetration, LBM can be used as a marine drop-in fuel for the existing fleet that already combust LNG and LPG due to similar handling. Currently, these vessels are LNG and LPG tankers. However, in newly built vessels, LBM can be also supplied to container ships, vehicle carriers, and bulk carriers (about 20% of newly built vessels). Provided that compressed natural gas infrastructure exists, CBM can be exploited in vessels with low energy needs and low space requirements and shore-side electrification, because investments in retrofits are lower compared to constructing new infrastructure.
... However, while considerable attention has been devoted to decarbonization initiatives within the Cypriot shipping industry (e.g. Nisiforou et al. 2022), research focusing on waste minimization and optimization of waste management practices remains relatively sparse. ...
Article
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Every year, up to 0.3 million tonnes of waste from the European shipping industry is not properly delivered at ports. Most of the waste produced by the shipping industry is plastic waste, putting plastics at the forefront of the shipping industry’s waste management efforts. In an increasingly connected global economy, concerted actions that encourage and incentivise waste minimisation and waste management optimisation are essential for the reduction of marine litter and the achievement of a circular economy within the shipping industry. Cyprus, an important flag state, can take a leadership role towards this direction. This article presents the results of the implementation of the DeCyDe-4-Shipping decision-support participatory method in Cyprus, which allowed effective multi-stakeholder interactions and resulted in the identification of actions for waste minimisation and waste management optimization that are relevant, effective, implementable, and stem from stakeholder consensus. The method resulted in the definition of yearly action plans with prioritized actions and provided the tools through which to monitor the industry’s annual progress. As the shipping industry is dependent on a global supply chain, DeCyDe-4-Shipping could be replicated at a wider geographic scale, starting with Mediterranean ports, to ensure consistent industry progress towards waste minimization and waste management optimization.
... Besides, we also find that an overly radical target framework may increase the burden on ship operators. Therefore, appropriate policies and regulations need to be formulated, otherwise the shipping industry will face greater regulatory risks (Nisiforou et al. 2022). In addition, improving the utilization rate of ships helps ship operators to fulfill the future requirements about carbon emissions. ...
... From the perspective of economy and politics, many scholars have focused on the construction of the decarbonization model [4][5][6], the improvement of energy efficiency [7,8], and the formulation of decarbonization policies for the maritime sector [9][10][11][12][13]. From a technological standpoint, the study of technological innovation in ship power systems is very barren, particularly when reliant on patent data analysis. ...
Article
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The shipping industry has accelerated the transformation of its carbon emission reduction and decarbonization, and relevant patents are rapidly increasing, but the industry still lacks consensus on the low-carbon development route of ship propulsion technology. We used the Derwent Innovation Index to collect the global patent information on ship power systems between 1965 and 2022 and proposed a new patent information mining framework. It is used for the dynamic tracking and analysis of global technology correlation characteristics, hot technology topics, and competitive situations. The findings indicate that: (1) the innovation of ship power systems is more radical and concentrated in the fuel field represented by LNG technology, whereas technical innovation in the field of pure electric propulsion is more scattered. Small tonnage ships, underwater operations, and recreation technology are among its innovation hotspots. (2) Pure electric propulsion technology is dominated by combined innovation with other propulsion methods (hybrid propulsion technology) and Chinese universities have recently begun to lead this technology. (3) Fuel cells and remote control have become innovation hotspots. Fuel cell technology, which combines electric, fuel, and hybrid power technology, is now on the cutting edge of innovation and has the potential for disruptive innovation.
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Recently, decarbonizing the maritime industry, which accounts for 2.8% of world emissions, has become essential. However, as a crucial component of maritime transportation, container shipping also carries substantial significance. In this context, the International Maritime Organization endeavors to endorse several projects and methods to mitigate maritime transport emissions. So, this study looks at frameworks, infrastructure, training, and other important factors for different operational and technological options for predicted decarbonization solutions in container shipping. It does this using the multi-criteria decision-making (MCDM) approach to find out what ship owners and other stakeholders want. It uses a thorough method that starts with a systematic literature review using the PRISMA method to make questionnaires. Then, the results are analyzed using the analytic hierarchy process (AHP) and the technique for order of preference by similarity to the ideal solution (TOPSIS). This research contributes to the scholarly discourse on reducing the emissions of maritime transportation. According to the findings, operational alternatives, such as ship speed, trim, and maritime route optimizations, are considerably more appealing than design and technology solutions, such as technically advanced ship hulls or machinery reforms. The pragmatic advantages of the operational alternatives, such as lower costs and shorter implementation schedules, stimulate their adoption. In contrast, design and technological solutions can influence emission reductions in the long term. It is possible to find operational alternatives for short-term decarbonization, while technical and design advancements can aid in long-term emission reductions in container shipping.
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Chapter
The development trend of the shipping transportation industry is gradually becoming the green ship system with decreasing the exhaust gases emission nowadays. Here, the de-carbonization of shipping transportation is a main streamline that a lot of countries are working hard toward to develop a sustainable environment at present. Then, the development of industrial revolution 4.0 is the milestone of the shipping transportation industry. In this research, a review of using the internet of things (IoT) technique has been conducted to investigate and analyze the pros and cons from utilizing this technique for the shipping transportation industry. The previous research results have been presented as well as seeking the novelty trend in applying this technique into the shipping transportation industry. This research gives the overall sight in researching new technologies where IoT has been investigated from this research.
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