Facilitating the transition to sustainable propulsion in the shipping industry: An agent-based modelling analysis of retrofitting

In response to growing concerns about the environmental impact of the shipping industry, this study examines the potential impacts of retrofitting on the shipping industry and the barriers and incentives that may affect the adoption of low-emission technologies. The MATISSE-SHIP agentbased model of transitions is extended to include retrofits. The results suggest that retrofitting can lead to a rapid decline in the use of high-sulphur fuel oil, with wind-assisted technology emerging as a competitive and cost-effective option for shipowners. Additionally, retrofitting can accelerate the transition to a diverse and low-carbon portfolio of propulsion technologies. The findings indicate that the success of decarbonization efforts in the shipping industry depends on a range of factors, including reliable supply that affects the accessibility and affordability of alternative fuels. Policymakers should consider these factors when developing policies and incentives to encourage the adoption of low-emission technologies in the shipping industry.