The enforcement of the global sulfur cap in maritime transport

Abstract

Purpose: The International Maritime Organization has decided that as of 1.1.2020, SOx content in a ship’s emissions should be no more than 0.5 per cent. The purpose of this paper is to address the various challenges expected to arise from the enforcement of the global cap sulfur regulation. Design/methodology/approach: The authors outline various enforcement options and present a model that calculates the profits from noncompliance in the high seas, so as to help determine the level of fines that could be imposed in case of violation. Findings: The main finding is that a harmonized system of fines, which are more than potential savings from cheating, would be a strong deterrent for compliance. Originality/value: To the authors’ knowledge, no paper in the maritime literature on sulfur regulations has focused on enforcement as of yet.