Bayes research grant will boost sustainable shipping drive

The UK National Clean Maritime Research Hub has awarded £50,000 funding to the Bayes Business School-led project “Decarbonizing Shipping and Its Ripple Effects on Global Trade, Shipping Taxation, and Consumer Prices”.

This is the largest flexible fund the hub can award for a single project and the Bank of England will provide equivalent matched in-kind funding.

This research falls under one of the hub’s five key themes: “Advances in maritime operations, exploitation of digitalisation and green finance.”

Risky reduction

Principal Investigator Ioannis Kyriakou, Professor of Actuarial Science at Bayes Business School, City St George’s University of London, said the project aims to address the risks and uncertainties surrounding marine regulations and their policy implications.

He said: “This is a significant step towards sustainable maritime practices because at the core of the research is the UK’s plan to introduce a Carbon Border Adjustment Mechanism (CBAM) as part of its decarbonization strategy. Designed to prevent carbon leakage, CBAM will impose taxes on carbon-intensive imports when the carbon price in the country of origin is lower than in the UK.

“While the policy supports the UK’s climate agenda, it raises concerns about its inflationary impact, particularly given the country’s already high inflation rate.”

The research will examine the uncertainties surrounding EU–UK carbon price differentials, the carbon content of imports, and exporters’ strategic responses. It will analyse how CBAM affects the gap between producer and consumer prices and what this means for maritime stakeholders and consumers.

Professor Kyriakou explained: “This project represents a critical contribution to the ongoing discourse on maritime decarbonisation. By offering a data-driven foundation for regulatory frameworks, it will help balance environmental objectives with economic stability. As the UK navigates the complexities of global trade and carbon pricing, the findings will be instrumental in shaping a policy landscape that supports both sustainability and market resilience.”

The bigger picture

Bayes is one of the core members of the hub. The wider theme, “Advances in maritime operations, exploitation of digitalisation and green finance,” is led by Dr Ioannis C. Moutzouris, Onassis Associate Professor of Shipping Finance and Sustainability at Bayes.

Funding for the hub includes £7.4 million from the Engineering and Physical Sciences Research Council (EPSRC) and the UK Government’s Department for Transport, with an additional £13.9 million financial and in-kind match funding from consortium universities and project partners.