Policy Evaluation of Shipping Industry on CO2 Emission Production in Indonesia: A Causal Loop Analysis

As an archipelagic country with two-thirds of its territory consisting of water and in line with global trade, Indonesia has made the shipping sector an essential and strategic role in supporting national development by paying more attention to developing its maritime industry. The increasing need for shipping services will also increase the phenomenon of global warming. CO2 emissions from the marine transportation sector have become a concern for transport policymakers and climate change regarding sustainability issues, including CO2 emissions in ports which continue to increase due to their significant impact on emerging environmental, social, and economic issues. However, the existing studies focus primarily on CO2 emissions from shipping, with little attention to vessel berthing in ports and cargo handling in ports. This study takes the marine transportation sector in Indonesian Ports by using part of the System Dynamics methodology, Causal Loop Diagram Analysis on the production of CO2 emissions, to show the interrelationships between these factors. The purpose of this study is to propose a CO2 emission mitigation strategy and evaluate policies that have been implemented in the marine transportation sector. The results show a validated Causal Loop Diagram that can be used for dynamic system assessment under the scenario.