Differentiating on port fees to accelerate the green maritime transition

This study investigates conditions under which differentiating port fees based on vessels' environmental performance could be an additional driver for cruise-ship owners to invest in green technologies. Our case study on liquefied natural gas (LNG) as fuel for a cruise ship shows that port-based incentives could help reduce emissions to air and drive uptake of green technologies. Assuming an average rebate of EUR 1500 per port visit, the accumulated rebates globally for our case study ship exceed EUR 400,000 per year. Applying a rebate of nearly EUR 4800 per visit as currently offered in Norwegian ports, and assuming 50% of ports globally adopt the scheme, gives a cost benefit of EUR 700,000 per year, reducing the LNG technology payback time up to one year. Our case study also shows that significantly reducing ship emissions in ports will bring social benefits through reduced risks of loss of life, health and wellbeing.