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International Shipping and Climate Change

International Shipping and Climate Change. Michael Sutton A/g Executive Director Infrastructure and Surface Transport Policy. Outline. UNFCCC framework, role of ICAO and IMO Emissions from fuel used for international transport  International shipping and reduction measures

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International Shipping and Climate Change

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  1. International Shipping and Climate Change Michael Sutton A/g Executive Director Infrastructure and Surface Transport Policy

  2. Outline • UNFCCC framework, role of ICAO and IMO • Emissions from fuel used for international transport  • International shipping and reduction measures • IMO work on GHG policy framework

  3. 52.9% Maritime 42.5% Aviation Source: International Energy Agency International transport emissions

  4. International process • National targets under UNFCCC • Address International bunkers through ICAO and IMO • Post Kyoto congruent process towards end 2009 agreement • CO2 principal greenhouse gas in relation to transport

  5. Estimates of global shipping emissions

  6. Shipping sector • World GDP grew by 4.0% while volume of world trade grew by 8.0% • 60,000 ships in world trade as at January 2007 • Estimated to grow by11% by 2020 • Big ships to grow by around 60% over the period • Estimated fuel consumption nearly 500 million tons in 2020, a one quarter increase in fuel consumption from 2007 figures.

  7. Reduction measures Three broad categories • Technical: fuel efficiency measures or alternate fuel and energy source • Operational: ship/port operational changes for improved efficiency and fuel savings • Market based: economic instrument to encourage behavioural change

  8. Technical measures • Short term energy savings achievable through application of current technologies • Potential of technical measures to reduce CO2 emissions estimated as 5-30% in new ships and 4-20% in existing ships • HFO quality poor and approaching acceptable critical specification both environmentally and for engine performance

  9. Operational measures • Potential of operational measures estimated as 1-40% • Speed selection alone results in highest reduction of CO2 • 25% reduction in turn around time reduces CO2 by 1-4% • Reduction in turn around time with speed selection can reduce CO2 by 14-17%

  10. Market based measures • Can drive technical and operational changes • Ship emissions outside national control • Policy instrument needs to be comprehensive and global in scope

  11. IMO 2009 GHG study • Update to GHG 2000 study to inform IMO deliberations on a global agreement by end 2009 • Phase I to inform on current inventories, future scenarios and climate impact from CO2 emissions • MEPC 58 in October to discuss Phase I of the report • Phase 2 to fully inform on current inventories, future scenarios, climate impact and reduction potential

  12. GHG: IMO fundamental principles • Effective in contributing to reduction of total global GHG emissions • Binding and equally applicable to all flag states • Cost effective • Able to limit or effectively minimise competitive distortion • Should not penalise global trade and growth • Goal based approach and not prescribe specific methods • Support technical innovation and R&D in shipping • Accommodate leading technologies in energy efficiency • Practical, transparent, fraud free and easy to administer

  13. IMO timeline • Keep one step ahead of the UNFCCC process

  14. Conclusion • No easy answers • Establish baseline, allocate emissions, design CO2 ship index, develop technical and operational best practices and formulate market based policy instrument • Global solution • Simple, practical and effective • Does not penalise global trade and growth in shipping industry

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