Emory Corporate Governance and Accountability Review


The International Maritime Organization has recently set forth strict sulfur emission limitations to help curb environmental pollution across the seas. The regulation is ideal for reducing the environmental impact of international maritime shipping carriers. While the regulation is ideal on its face, in practice, the enforcement authority of the International Maritime Organization and the current compliance by carriers is limited. The cost-benefit analysis between environmental compliance and non-compliance exposes the conflicting incentives. This article presents the difficulties of enforcing this new regulation and offers insight and alternatives for both carriers the International Maritime Organization.