Examining Industry Perspectives on ‘Fit for 55’ Strategies: A Case Study of Icelandic Aviation and Maritime Shipping Companies

Abstract

The European Union (EU) faces extraordinary challenges in fulfilling the promise of the Paris Agreement by achieving the climate targets of European Climate Law (ECL), which are integrated in its Nationally Determined Contributions (NDC) and intended to deliver on the transformational objectives of the European Green Deal (EGD). The ‘Fit for 55’ policy package is designed to achieve the targets and objectives outlined in the EU’s NDC, accelerate emissions reductions in energy-intensive EU sectors including transport and set the EU on the path to reach its long-term climate goals. Iceland participates jointly in the EU’s climate goals and it faces interrelated challenges of meeting the EU’s climate ambition and adopting the ‘Fit for 55’ policies through its own legislative processes. Iceland’s adoption of ‘Fit for 55’ has transformative implications for its transport sector, including aviation and maritime shipping companies. This research is a case study that aims to examine perspectives of leading aviation and maritime shipping companies in Iceland regarding engagement in 'Fit for 55' strategies. It does so by exploring current actions, identifying drivers and barriers and offering general considerations to address policy gaps identified. Semi-structured interviews were conducted with key personnel at selected aviation and maritime shipping companies in Iceland. Qualitative methods were employed to analyze the data and code it into emerging themes. Overall, the study finds that all the interviewees are engaging in actions relating to ‘Fit for 55’, and some are developing long-term strategies. In the case of theoretical implication nine drivers are identified, with market competitiveness and regulatory requirements among the most relevant. Ten barriers are identified, with high costs and uncertainty and risk among the most relevant. General considerations are offered to address policy gaps found in the literature which connect to identified barriers. This research can help policymakers better understand drivers and barriers of ‘Fit for 55’ strategies among aviation and maritime shipping companies in Iceland. It can also support future research on ‘Fit for 55’ strategies of transport companies in Iceland, as well as ‘Fit for 55’ implementation and impacts in Iceland’s transport sector.