Carbon Emissions FAQ
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Q: What incentives currently exist for the industry to lower fuel use and carbon emissions?
A: The greatest incentive is lowering the cost of fuel. Fuel costs are a dominant factor in the bottom-line profitability of shipping companies. Fuel costs account for as much as half of a container ship's operating expenses. Accordingly, market forces already provide a significant incentive for the industry to minimize energy use (and therefore emissions). This incentive will continue to intensify as energy prices resume their expected upward climb due to market conditions, even in the absence of new climate change policies that may or may not increase fuel prices further.
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