11th Biennial Report on Great Lakes Water Quality


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Chapter 3

Introduction

Ballast Water Exchange: A Complex Problem

Substantial Gaps in Knowledge Remain

Economic Incentives Could Help

Progress from Governments

Conclusion

Recommendations

 

Economic Incentives Could Help

The conspicuous lack of government incentives contributes to the problem. The European port management community has pointed the way toward innovative incentives with its "green ship" awards. These awards offer reduced port fees for ships exceeding established management practices for all ship wastes, emissions, and discharges, including ballast water. Requiring mandatory compliance with existing voluntary guidelines would establish a minimum acceptable level of performance, but a system of awards and economic incentives could encourage shippers to exceed the minimum levels of performance by continuously improving ballast management practices using innovative approaches. (Economic incentives also have been called for by other Great Lakes - St. Lawrence River organizations, such as the binational Great Lakes Panel on Aquatic Nuisance Species in its March 2001 policy statement on ballast water management.)

The future threat of liability for the damages from biological pollution may be a powerful economic incentive. Insurance companies have been slow to recognize that their exposure could be substantial. Because there are a limited number of carriers, customers, and ports of origin and destination, and because such biological analytic techniques such as DNA analysis are advancing rapidly, the prospect of assigning liabilities for damages is increasing. Marine insurers would be wise to consider incorporating the risk of entry of alien invasive species into their insurance policies and premiums.

For governments and regulatory agencies, economic incentives warrant further investigation as to feasibility and enforcement.