Network design and refueling station locationing for green maritime corridors and emission trading

Abstract

The maritime shipping industry, responsible for 3% of global greenhouse gas emissions, is facing increasing pressure to transition towards decarbonization due to the escalating threat of climate change. This has inspired the conceptualization of green maritime corridors—a designated network of shipping routes, ports, and associated infrastructure strategically designed to advocate for shipping practices with low or zero emissions. Despite initial empirical studies highlighting their potential, the design of these shipping networks and the establishment of necessary refueling stations for alternative fuel ships remain underdeveloped. Furthermore, the impact of the European Emission Trading System (EU ETS), implemented in 2024, on maritime stakeholders and its effectiveness in incentivizing investments in carbon-free or zero-carbon technologies is poorly understood. Therefore, in this work, we define the network design and refueling station location problem within green maritime corridors and propose an optimization model to minimize overall costs. We analyze emission fees under the EU ETS across different scenarios and assess the investment costs of building green maritime corridors, highlighting incentives for shipping operators to be involved. Thus we present a first optimization approach for designing green maritime corridors, offering critical guidance to policymakers and industry stakeholders for effective implementation of maritime green corridors.