Regulatory Systems Supporting Innovation: Lessons From The Development Of The 2004 Ballast Water Management Convention

The 2004 Ballast Water Management Convention (BWMC) demands the development of new technology in order to ensure improved environmental performance by ships. However, the successful development of innovation through technology requires characteristics missing from the rather conservative shipping sector in general and also from the BWMC as a legal instrument in particular. The authorisations granted under the BWMC with respect to ballast water treatment systems indicate that the innovation cycle was already completed before the adopted performance standards became legally binding. The innovative efforts were restricted to shipbuilding countries and were not accompanied by incentives to develop suitable sampling techniques to ensure efficient implementation. Innovation through regulation requires evolving standards, benefits for innovators and first movers as well as impact assessments on the efficiency of the chosen technological solutions in resolving the environmental problem. A revised BWMC, to be efficient, needs to take these factors into account.