VIEWPOINT

2023

C R E AT I N G A G R E E N E R
FUTURE FOR THE BLUEECONOMYHow the port & maritime sector candeliver environmental sustainability

AUTHORS
Paolo Carlomagno

Of the top five issues impacting the port andStefano Decadri

maritime industry, three relate to environmental

Stefano Milaneserisks — a position that has not changed over thelast five years. The sector must therefore drive theYuma Itodecarbonization of shipping, comply with increasing

Daniel Chowenvironmental regulations, and meet societal

Tatsumi Uchiyama

demands for greater sustainability. These efforts
require an ecosystem approach, with ports andmaritime operators playing a pivotal role in creating
the blue economy and delivering a sustainable
future.

Wendy Cheng

ARTHUR D. LITTLE

VIEWPOINT

SUPP OR TING
ENVIRONMENTAL PUSH
ACROS S GLOBAL ECONOMY(RFNBO), such as methanol, ammonia, andAccording to the United Nations Conference on

vessels, for example. (A specific in-depth

Trade and Development (UNCTAD), ports and thestudy on this topic will be presented in an

wider maritime industry are responsible for more

upcoming Viewpoint.)

than 80% of world trade, making them central
to the success of the global economy. Their
activities connect supply chains; transport goods,
commodities, and raw materials around the world;and support industrial and storage facilities.
The sector therefore affects the daily lives andoperations of most consumers and businesses.
Three key drivers are impacting the sector as itembraces environmental change:
1. Net-zero shipping catalyzing the green
transition. Shipping faces a growing numberof specific regulations designed to reduce
emissions and make it more sustainable.
For example, many regions have introducedor plan to introduce International Maritime
Organization (IMO) Emission Control Areas(ECAs), which mandate that vessels use fuelwith sulfur content below 0.1%. However,greenhouse gas (GHG) emissions from theworld’s maritime fleet increased by 23% from2012 to 2022 and then 4.7% between 2020 and
2021. Per ADL analysis, we forecast it to rise by
44% by 2050 if countermeasures are not put inplace. Thus, there is an urgent requirement to
reduce emissions through greater efficiency
and the introduction of lower-carbon fuels.
This requirement will soon be mandatory
in the EU, where the Alternative Fuels
Infrastructure Regulation (AFIR) and FuelEU
Maritime (which have recently become laws)
will push both the provisioning of shoreside electricity and the phase out of all
powertrain technologies that cannot ensure
zero GHG emissions, promoting the adoptionof renewable fuels of non-biological origin

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

synthetic fuels. Some shipping lines havealready launched their sustainable fuelstrategies, ordering methanol-powered

2. A global coalition with tighter regulations
pushing the green transition. UN
Sustainable Development Goal 14, “Life Below
Water,” sets 10 targets and 10 indicators tomeasure the health of the seas, including
around pollution, ocean acidification, andmarine ecosystem protection/restoration. The
aim of improving the marine environment has
been accelerated by the UN High Seas Treaty,
signed in March 2023. The most far-reachingtreaty since the Paris Agreement of 2015, it
provides a comprehensive legal framework toconserve and manage marine species in the
90% of the ocean outside territorial waters.
It will increase pressure on the maritime
sector to become more sustainable acrossits operations, especially in extraterritorial
waters.
3. Sustainability at the heart of customer
demands. Consumers are demanding greater
sustainability from the companies they buy
from — across those companies’ entire supply
chains. This is being translated into business
commitments around achieving net zero anddemonstrating ethical behavior across theentire supply chain. In turn, these businesses
are putting pressure on the maritime industry
that transports their goods. For example,
the Cargo Owners for Zero Emission Vessels(coZEV) initiative, which has members that
include Amazon, Michelin, DuPont, Unilever,Inditex, and Philips, has pledged to use
solely zero-emission shipping by 2040. This
accelerates the need to decarbonize maritime
transport or else face the loss of major cargos.

2

ARTHUR D. LITTLE

VIEWPOINTSIX OUT OF THE 10
GLOBAL TOP RISKSIN THE NEXT 10 YEARSW I L L R E L AT E T O
E N V I R O N M E N TA L I S S U E S

Many of these issues are exacerbated by thetragedy of the commons — the fact that thevast majority of the planet’s oceans are outside
national jurisdictions and are therefore not owned
by a single state. For the first time, the High Seas
Treaty changes this.
The emerging concept of the blue economy (seesidebar) is reinforcing the need for change andAccording to the World Economic Forum, six

encouraging the sustainable use of ocean orout of the 10 global top risks in the next 10 years“blue” resources for economic growth, improving

will relate to environmental issues. Therefore,

livelihoods and jobs while preserving the health ofports and maritime stakeholders must enhanceocean ecosystems. Like the green economy, thecollaboration to effectively tackle the mostblue economy aims to bring human well-being,

relevant environmental risks:social equity, and environmental sustainability- Biodiversity. Without action, over 50% of
the world’s maritime species could be on

the brink of extinction by 2100 according to
the UN Educational, Scientific and Cultural
Organization (UNESCO).

- Pollution from both plastic and chemicals.
Based on World Wildlife Fund figures, by 2050

into harmony. Achieving this requires a combined
private/public sector approach that drives
collaboration to understand and manage ocean
resources in a sustainable way for the good of all.
As hubs for maritime transport, food, energy, rawmaterials, and tourism, the ports and maritime
sector must be a pivotal part of the blue economy.

there will be more plastic than fish in theocean by weight.

- Natural resource depletion. Mankind

currently uses 1.8x the biological resourcesthat the earth generates every year, leading
to environmental degradation of the blue
economy.

- Livability of coastal areas. Many ports

and coastal areas are at risk of becoming
uninhabitable due to global warming,
erosion, and extreme weather.

-

Noise pollution from marine vessels.
Internally, noise pollution impacts crews,
and externally, disrupts communities andendangers wildlife.

The blue economy- Covers all economic activities related
to oceans, seas, and coasts- Currently estimated to be worth

US $1.5 trillion per year and is forecast
to double by 2030

- Covers both traditional maritime

activities (e.g., fishing or transport)
and new occupations (e.g., aquaculture
and offshore renewables)- Includes noneconomic benefits (e.g.,
carbon storage, coastal protection,
cultural values, and biodiversity)- Recognized by governments, such as

through the EU Blue Economy Report
2022, the US Ocean Climate Action Plan,
and the Middle East and North Africa(MENA) Blue Program

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

3

ARTHUR D. LITTLE

VIEWPOINT

UNDERS TANDINGENVIRONMENTAL IMPAC T

Ports face their own challenges and opportunities

Ports and maritime operations have a significant

interface between the land and sea. As such, theyand growing environmental impact acrossare central to creating net-zero transport anda range of areas, as shown in Figure 1. These

logistics nodes and must become catalysts forinclude air pollution, GHG emissions, releases of

the green transition by reinvention as renewableballast water containing aquatic invasive species

energy hubs for shipping, port activities, andimpacting biodiversity, oil/chemical and cargosurrounding industries. They must take a key role

spills, underwater noise pollution, ship strikes onin building and driving the circular economy (e.g.,marine animals, the release of sewage and othermanaging the scrappage and recycling of ships).

waste, increased sedimentation, and habitat
damage caused by accidents or collisions, suchas with coral reefs.

when it comes to the environment. They are
the pivot for the blue economy and act at theMoving forward, ports face increasing pressure on
their resources and therefore must be managed
in a strategic, sustainable way across all their

Decarbonizing the shipping industry requires

activities. Understanding this, the European Sea

a range of actions, particularly from port andPorts Organisation (ESPO) has defined two pillars

maritime governing authorities. It should start

within its reference framework to enable andwith a collective effort toward harmonizing

support a sustainable port ecosystem, including:regulatory carbon-accounting standards and- Pillar 1 — reducing pollution and otherframeworks across the globe and then covering
the introduction and financing of innovativetechnologies to deliver transformative change
to maritime transport.

externalities; for example, becoming net-zero
emitters by 2030

- Pillar 2 — through partnership andcollaboration, introduce new solutions thatenable ports to become engines of the green
transition

Figure 1. Environmental impact of port and maritime sector

Figure 1. Environmental impact of port and maritime sector

Ports services

Maritime services

NON-EXHAUSTIVE

Air
pollution

GHG
emissionsWater
pollution

HabitatdamageBiodiversity
destruction

Waste

Noise
pollution

Pilotage
Anchoring
Oil spill & ballast
water management
Container shipping
Container &cargo handling
Heavy lifts
crane operations
Hazardous
waste disposal
Container repair& maintenanceImpact scale legendHigh

MediumLow

Source: Arthur D. Little

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

4

ARTHUR D. LITTLE

VIEWPOINT

TAK ING AC TION
TO DELIVER CHANGE

1. Energy transition &climate change resilience
The energy transition for climate change

The ports and maritime sector spans a wide

resilience is the sector’s highest priority.

range of players, from shipping companies andOrganizations must focus on renewable energy

their customers to port and maritime operators,
shipbuilders/maintainers, local industry, workers,
associated businesses, governments, andfor port and maritime activities and enable local
industrial activities to do the same, evaluating
the growing range of clean power-generation

regulators. Successful sustainability requires

sources and sustainable fuel options for shipping,joined-up, collaborative action under a single

based on factors such as:cohesive vision, integrating objectives andin the development and integration of their- Emission-reduction potential- Potential supply and availability- Energy density- Infrastructure compatibility- Safety requirements- Storage and transportation requirements

sustainability strategies, synchronizing

These evaluations will enable participants totheir implementation in order to enhance

select the optimal mix for their own activities

collaboration, and coordinate development

as well as for the wider ports, maritime, andthrough a roadmap of initiatives and projects

industrial ecosystems.

across four key strategic principles supported

For example, the Rotterdam Port Authority in therelated standards in an ecosystem approachto accelerate lasting change to safeguard amore sustainable, diverse, and livable net-zeroenvironment.
Ports and maritime governing authorities mustleverage their pivotal role in influencing thesector, pushing and supporting all stakeholders

by a variety of enablers (see Figure 2).

Netherlands is working with partners to introduce

Each of the four strategic principles is a key

a large-scale hydrogen network across the city’s

dimension to ensure the long-term success of

port complex, making it an international hub forports and maritime
organizations’ environmental
Figure 2. Delivering
environmental
strategyhydrogen production, import, application, andtransport to other countries in Northwest Europe.

strategies.

Figure 2. Delivering environmental strategy
Environmental strategy’s vision

Governance & regulations

Strategicprinciples

1. Energy transition& climate change
resilience

Enablers

Stakeholders'engagement

2. Environmental
protection

Technology

3. Circularity

R&D/innovation

Collaboration& ecosystem

4. HSE risk
management

Funding &incentives

Monitoring, evaluation& reporting

Sustainability
awareness

Capability
building

HSE = health, safety, and environment
Source: Arthur D. Little

HSE = health, safety, and environment
Source: Arthur D. Little
CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

5ARTHUR D. LITTLE

VIEWPOINT

ENERGY TR ANSITIONWILL BE THE KEY
INTERVENTION TO
REDUCE PORTS’ AND
THE MARITIME SECTOR’SGHG FOOTPRINT

3. Circularity
Port and maritime governing authorities must
support the sector in embracing the greater useof innovative technologies to enhance waste
and water circularity, thus improving energy andmaterials efficiency. Options include incentives
to promote:- Carbon capture, utilization, and storage
The ambition is to produce 20 metric tons (Mt)of climate-neutral hydrogen by 2050 — which
will require over 100 GW of electrolysis capacityand over 200 GW of electricity generation fromrenewable sources (mostly offshore wind) due totheir intermittent availability.
Energy transition will be the key intervention
to reduce ports’ and the maritime sector’s GHG
footprint and to support global efforts to limit— supported, for example, by plantcultivation such as algae, which have a higher
photosynthesis rate compared to terrestrial
plants- Chemical recycling — leveraging thepresence of various chemicals firms andtechnologies typically located near ports- Energy from waste — often used inconnection with district heating solutions,the impacts of climate change. However, ports

which can support decarbonization of coastal

and maritime operators must develop solidcommunities

climate change–resilience plans to be ready toprevent and mitigate related impacts on theirbusiness continuity.
2. Environmental protection
Governments, regulators, and authorities aregradually increasing environmental-protection
requirements, while many stakeholders arepushing ports and maritime operators to be
more transparent and effective in mitigating
their environmental impacts. Ports and maritime
governing authorities must promote and support
collaboration within the sector ecosystem todefine and jointly manage initiatives for air
pollution and dust emissions mitigation, theimprovement of water and soil quality, thereduction of noise, and the protection of

Finally, among the most relevant actions requiredby the sector is the greater use of innovative,
advanced materials to reduce the weight andenergy use of vessels, prolong their life, andimprove safety. Options include:- Graphene-doped anti-corrosion coatings —to improve hydrodynamic efficiency- High-strength, self-healing structural

materials — to reduce maintenance costs- Self-cleaning/self-repairing finishes —to increase material lifespan and reduce
chemical use- Bio-based materials — to increase overall
supply chain sustainability and reduce
production emissions

habitats and biodiversity.

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

6

ARTHUR D. LITTLE

VIEWPOINT

4. HSE risk management

Circularity can become a value generator for
all players in the ecosystem while meeting

The sector is characterized by a combination

environmental goals. For example, as reported byof internal health, safety, and environment

World Maritime University, a cost-benefit analysis(HSE) hazards and risks connected to cascadingof a circular model initiative proposed for the

impacts of HSE hazards from the industrial

Copenhagen-Malmö port showed that, against an

facilities that typically exist near ports andinvestment of around $49 million for installation

coastal areas, including refineries, petrochemical

and maintenance of a new biogas power plant andplants, power-generation plants, and steel andcold ironing system, there will be a payback period

manufacturing factories. All port and maritimeof about seven years, showing the feasibility of theactors must therefore ensure they have a clear

proposed model, which will also generate positive

understanding of their exposure to HSE risks

externalities for nearby communities.

by defining initiatives to ensure a state-of-Port and maritime governing authorities mustthe-art approach toward hazard identification

facilitate the sector to bring together shipping andand risk assessment within the port andports operators in a single, closed-loop ecosystem

maritime ecosystem. These initiatives will bebased on the four principles of maintenance, reuse,

the foundation of both risk-prevention andremanufacture, and recycle (see Figure 3).

emergency management activities and should be

Demonstrating the drive for circularity, thesupported by a strong collaboration with partners

European Institute of Innovation & Technology’s

and peers at global scale.

(EIT) LOOP-Ports project aimed to drive a transition

Port and maritime governing authorities

toward closed-loop systems by creating a circular

must create a framework collecting HSE risk

economy network of European ports. It focused

assessment from different operators withinon materials (e.g., metals, plastics, and cements)

the sector, verifying their consistency andwith a high environmental impact, identifying

making sure there are no “gray areas” that could

opportunities for change through innovation,

potentially lead to unknown and unmitigatedcollaboration, and stakeholder interaction. The

HSE risks.

LOOP-Ports project involved more than 40 partners
from six EU member states.

Figure 3. Creating a circular ecosystem
Figure 3. Creating a circular ecosystem
Shipping & ports
Materials
Suppliers
A.4 Ship scrapping

A.3 Ship conversion

A.2 Ship sales & leases

A.1 Ship maintenance

A.4

Shipbuilders

Equipment
manufacturers

Shipping lines

Terminal
operators

B.4

A.3

B.3

A.2

Containers

A.1

Shipping

Iii

Ships

B.2
B.1

Port
Infrastructure

B.4 Recycle

B.3 Remanufacture

B.2 Reuse

B.1 Maintenance

Leakage

Disposal
Source: Arthur D. Little; Notteboom, Theo, et al. Port Economics, Management and Policy. Routledge, 2022

Source:Arthur
D. Little; Notteboom,
et al. ECONOMYPort Economics, Management and Policy. Routledge, 2022
CREATING
A GREENER
FUTURE FORTheo,
THE BLUE

7

ARTHUR D. LITTLE

VIEWPOINT

Enabler example —Technology, R&D & innovation
Port and maritime governing authorities must
promote the delivery of projects and initiatives

CASE S TUDIESTop 10 global transportation/
shipping company

across the four strategic pillars, supporting the

A major global shipping company recently

deployment of the enablers shown in Figure 2,

sought to improve its performance in several

among which technology and R&D/innovation

environmental sustainability areas, including:

may have the most immediate impact.
For example, facilitating and supporting the- Setting sustainability targets based on factors
such as regulations, competitor activities,

upgrading of IT infrastructure and rolling out

customer requirements, technology feasibility,

technologies such as 5G, Internet of Things,

and emission simulations

artificial intelligence, and digital twins can assist
the sector in retrieving and process data in realtime, thus ensuring:- More precise container tracking- Engine condition monitoring- Preventative inspection and maintenance- Cost optimization- More accurate communication and navigation
Introducing automation enhances operating
efficiency, increases security, and reduces costs;
for example, through autonomous cargo ships andthe integration of robotics into cargo operations,such as for ship inspections, firefighting,cleaning, and anti-piracy operations.
The Italian Port of Livorno is piloting 5G totransform its processes and support greater
sustainability. The network will enable the port
to use always-connected sensors and enhanced
applications that control and make decisions inreal time, to provide intelligent, real-time insights
into operations and uncover opportunities forfurther optimization.

- Defining overall sustainability strategy towardthe 2050 net-zero target, covering activity

streams such as an alternative fuel feasibility
study and technology and investment
roadmaps around fleet portfolio and impact
on partnerships- Creating a green fund and conducting an

initial assessment of project priorities andinvestments- Developing sustainability reporting and GHG
emission inventory certification- Deploying a new sustainability organization,
including recruiting senior leaders

Smart Delta Resources
Smart Delta Resources (SDR) is a unique,cross-border collaboration of industry, port,
governments, knowledge institutions, andenergy and network companies in the FlemishDutch Scheldt-Delta region. Partners include
North Sea Port, DFDS Seaways, Yara, Zeeland
Refinery, Vopak, Dow Benelux, ArcelorMittal, Engie
Electrabel, PZEM, and Ørsted. The objective is toinvestigate making significant reductions in theiruse of energy and feedstock, achieving a CO2neutral industry by 2050.

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

8ARTHUR D. LITTLE

VIEWPOINTWith the region home to the largest industrialhydrogen cluster in the Benelux Union, SDR’s
Hydrogen Delta Programme aims to transition
toward a low-carbon hydrogen economy, using
offshore wind energy to power green hydrogenproduction through a number of planned andcurrent electrolyzers. SDR is currently defining
its green hydrogen ecosystem.

PORTS AND MARITIMEO P E R AT I O N S H AV E
A SIGNIFICANTAND GROWINGE N V I R O N M E N TA L I M PA C T
ACROSS A R ANGEOF AREAS

Nantes Saint-Nazaire Port ÉOLE project
Nantes Saint-Nazaire Port in France has launched
the floating wind power‒generation project ÉOLE,
identifying offshore wind power as a key lever for
its future energy transition. The project is part ofa national-level commitment to install offshore
wind farms with 40 GW of installed power.
The Northern Atlantic region of Nantes SaintNazaire Port is the most promising one for thistechnology, having an exploitable potential of
20-30 GW, corresponding to a total of some 1,500
wind turbines. Floating wind turbines will enable
access to more constant winds found further
offshore and limit the visual environment-related
impacts and conflicts of use of maritime areas.
At the port, floating wind turbines will require
specific infrastructure to support construction
and maintenance of installed assets. The ÉOLE
project is part of the Nantes Saint-NazairePort’s goal of a successful energy and ecologicaltransition and is receiving the contribution of theEuropean Commission within the framework of
the Connecting Europe Facility (CEF) program.

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

Rotterdam & ZEMBA — Fee reduction
for green bunkering
Within the Zero Emission Maritime Buyers
Alliance (ZEMBA) consortium framework, the Portof Rotterdam has decided to launch additional
incentives to promote the adoption of sustainableshipping fuels. In particular, the port will offer
a fee reduction to large oceangoing container
vessels when bunkering sustainable fuels in
Rotterdam, which can be a savings of as much as~$542,000 for some larger vessels. To qualify forthis discount, a vessel must bunker alternative
fuels in Rotterdam with at least 90% reduction
in GHG, such as green methanol or green
ammonia. The coZEV — a platform specificallydesigned for climate-leading customers of theshipping industry — has also initiated a request
for proposals for the transportation of 600,000
20-foot containers (TEUs) on oceangoing vessels
powered by zero-emission fuels.

9

ARTHUR D. LITTLE

VIEWPOINT

CONCLUSIONPURSUING A BLUE ECONOMYF O R A S U S TA I N A B L E P O R T& MARITIME SECTORT H E P O R T A N D M A R I T I M E S E C T O R M U S T P L AY
A P I V O TA L R O L E I N C R E AT I N G A N D E X PA N D I N G
THE BLUE ECONOMY
The port and maritime sector is a key driver of global trade and must
play a pivotal role in creating and expanding the blue economy. Port andmaritime governing authorities should act as facilitators in supporting
the sector to:
1

Take a collective ecosystem approach across industries and players— at the local, regional, and global levels.

2

Develop and integrate sustainability strategies and synchronize
resulting implementation roadmaps, enhancing collaboration
to coordinate the development of the essential elements of asustainability strategy.

3

Harmonize standards, especially around carbon accounting,and pilot and implement innovative solutions to unlock fundingfor change.

4

Focus on three key focus areas:- Clean energy for ports and shipping- Improved efficiency and greater circularity- Innovation and digitization to increase automationand the use of data
5

Jointly develop sector-tailored incentives such as fee reductions
for operators adopting sustainable technologies.

6

Coordinate with local and national government bodies to define
and deploy suitable incentive schemes that are required to boost
and support the launch of sustainable investments.

CREATING A GREENER FUTURE FOR THE BLUE ECONOMY

10VIEWPOINT

CREATING A GREENER FUTURE FOR THE BLUE ECONOMYARTHUR D. LITTLE

11

Arthur D. Little has been at the forefront of innovation since1886. We are an acknowledged thought leader in linking
strategy, innovation and transformation in technologyintensive and converging industries. We navigate our clients
through changing business ecosystems to uncover new growth
opportunities. We enable our clients to build innovation
capabilities and transform their organizations.
Our consultants have strong practical industry experience
combined with excellent knowledge of key trends and dynamics.
ADL is present in the most important business centers around theworld. We are proud to serve most of the Fortune 1000 companies, inaddition to other leading firms and public sector organizations.
For further information, please visit www.adlittle.com.
Copyright © Arthur D. Little – 2023. All rights reserved.