Maritime Decarbonization: An Analysis of Strategies and Challenges

Abstract

Concerned with the significant impact of shipping operations on climate change, this thesis investigates why this "hard to abate" sector is slow to transition towards decarbonization. It examines the roles of regulatory enforcement, technological innovations, and market dynamics in this process. Considering the importance of maintaining economic viability of business operations, this thesis discusses the strategies that can be deployed to benefit from the transition while still achieving global goals. Stakeholder and competitive advantage theories have been used to understand the intricacies of strategic management and apply the learnings on the data observed, consequently, ultimately leading to its conclusions. Achieving net-zero operations in the maritime industry demands a strategic and coordinated approach focusing on stakeholder engagement, improvement of internal capabilities, and integrating greening strategies into business models. This study answers critical questions about technological and operational strategies, drivers of decarbonization adoption, and the influence of international regulations and geopolitical tensions. The findings reveal that the adoption of new technologies and operational strategies is critical, however, it faces significant challenges such as financial limitations, political tensions, and regulatory uncertainties. The study also indicates that internal motivations, market demands, and stringent regulatory frameworks are the main factors for transitioning to sustainability.