GHG EMISSIONS FROM SHIPS
OPERATIONAL EFFICIENCY STANDARDS FOR
INTERNATIONAL SHIPPING
LATIN AMERICAN PANEL
Buenos Aires
5th November 2014
Dragos Rauta
INTERTANKO
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BACKGROUND
Climate Change/GHG Emissions – HIGH level political item
Kyoto Protocol – Regulatory frame work through UNFCCC –
Parties commit to emissions reductions targets:
• primarily through national measures . . . . . . but also
• through additional Market Based Measures (MBMs)
Due to their international character, Aviation & Shipping not
included in the Kyoto Protocol
UNFCCC agreed measures are taken through ICAO and IMO,
respectively
ICAO decision: to suggest an Emission Trading Scheme (ETS) for
aviation by 2016 with enforcement in 2020
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IMO Decisions
• Mandatory Energy Efficiency Design Index (EEDI)
for new buildings (1 January 2013) & Ship Energy
Efficiency Management Plan (SEEMP) for all ships
• SEEMP does not set a target for GHG emissions
reduction of ship in operations
• IMO considered Market Based Measures (MBMs) for
shipping but thus far, no agreement
• Alternative: Amendments to MARPOL Annex VI to
assess Energy Efficiency of ships in operation
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OPERATIONAL EFFICIENCY STANDARDS FOR
INTERNATIONAL SHIPPING
WHAT DOES IT MEAN?
IN PRINCIPLE, SHIPS IN OPERATIONS WOULD BE EXPECTED
TO MEET A LEGALLY – BINDING OPERATIONAL EFFICIENCY
OR
LIMIT SHIPS’ ANNUAL FUEL CONSUMPTION
KEEP IN MIND: THIS IS JUST A PROPOSAL
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OPERATIONAL EFFICIENCY STANDARDS
The Concept: Three step phase-in legislation
• Phase I – data monitoring, reporting and verification
• Phase II – trial period for verification of enforceability
of the set target
• Phase III – enforcement
The Proposals:
@ IMO by: USA, Japan, Germany and EU
(item called: further technical and operational measures
for enhancing energy efficiency of int. shipping)
Regional: European Commission (proposed regulation
called Monitoring, Reporting and Verification (MRV))
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PROPOSED SCHEMES at IMO
USA - Ship Efficiency Credit Trading (SECT)
Data to be used: (a) joules of energy of fuel used & (b) ships’ service hours
Measure: Efficiency measured on joules/service hours; Target: to be defined
Japan - Annual Efficiency Ratio (AER)
Data to be reported: (a) fuel consumption & (b) distance
Measure: Annual AER value calculated with a “standard cargo” (vessel’s max. DWT)
AER = total (annual) fuel consumption / total (annual) distance / DWT
Target: to be defined
Germany - Fuel Oil Reduction Strategy (FORS)
Data to be used: (a) installed power (b) average SFOC (c) average annual
operational time & (d) average annual cargo carried.
Measure: Reference Fuel Consumption for a ship type and size:
RFC = (Installed Power) x (~ SFOC) x (~ operational time) x (~ cargo carried)
Target: Standard required = RFC x (1 – Reduction Target in %)
reduction target in% yet to be defined
What if not compliant? not addressed by any of the proposals
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CURRENT SITUATION @ IMO
• No agreement for the development of an
operational efficiency model for ships
• This will be discussed at a later stage, after
assessing the data collected
• Continue to work on a draft text for a mandatory
data collection
• The further work to be done by a correspondence
group (CG)
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CURRENT SITUATION @ IMO
• Data collection from ships of > [5,000] DWT
• Data which could be collected:
– identify the ship (name of the ship, IMO number, flag State and
registered owner)
– provide technical characteristics of the ship (ship type, GT, NT, DWT,
engine power, reference/design speed, EEDI (if applicable) and ice
class (if applicable))
– provide total annual fuel consumption per fuel type
• Agreed to not include any other data such as total distance
travelled, total service hours and total cargo carried over one year
• A decision on this type of data to be taken after IMO/MEPC has had
a full policy debate in order to explore possible consensus of any
additional measures except fuel consumption data reporting
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CURRENT SITUATION @ IMO
• Data reported to a centralised database managed and
paid for by IMO
• Reporting system to be established by the Flag
• Annual Report in electronic format
• Definition of the “annual reporting period” to be
developed by the CG
• Ships maintain annual reports onboard and make it
available to their Flag, if requested
• CG will not discuss whether data should be made public;
this will be discussed further by MEPC at a later stage
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Industry Submission @ MEPC 67
• Agreeing with data collection
• Challenging the need, the justification and the feasibility
of a legally-binding operational efficiency for ships
• Fuel efficiency standards for entire transportation sectors
applied at design stage; IMO adopted EEDI
• No other transportation sector subjected to operational
efficiency standards
• Operational efficiency standards account for many and
complex criteria: not practical as a regulatory standard
• Costs of fuels, costs for compliance with ECA and global S
cap are great incentives for fuel emissions reductions
• List of key questions IMO should answer before deciding
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EU REGIONAL PROPOSAL on MRV
Applicability: All ships > 5,000 GRT calling to EU ports
Reporting CO2 emissions when ships travel:
• between EU ports,
• an incoming voyage from a non-EU to an EU port
• an outgoing voyage from an EU port to a non-EU port
Data to be reported: fuel consumption, distance and cargo
Reporting in accordance with a Ship’s Monitoring Plan
Measure: monitor the ship’s average energy efficiency at least
with the following criteria:
Total annual CO2 emissions / total annual distance travelled
Total annual CO2 emissions / total annual transport work
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EU REGIONAL PROPOSAL on MRV
Proposed Dates for implementation:
1 July 2015 – enter into force
31 August 2017 – companies submit Monitoring Plan to “verifiers”
1 January 2018 – starts first annual reporting period
2019 and after
– by 30 April each year, companies shall submit a verified emissions report to
the European Commission and to the flag State
– by 30 June each year, the European Commission will make the
emissions reported by ships publicly available
EU Commission, EU Parliament and EU Council initiated the
trialogue negotiations on 15 October
The proposed MRV regulation could be ready for adoption for
July 2015 but . . . . . . . mostly on data collection
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INTERTANKO COMMENTS ON MRV
• MRV should be discussed at IMO - Regional MRV will
bring marginal benefit (shipping contribution to total GHG
in EU < 0.50%)
• Regulators must consider thoroughly data collected and
assessment results before taking next step
• There is no model to define a fair and concrete legal
binding operational standard for ships
• No problems with some data collection (aggregate annual
values)
• Simplicity in data collection
• Verifiers to be licensed and have shipping experience
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TANKERS PERFORMANCE
Average improvements from the EEDI base line (new ships)
VLCCs
11.05%
Suezmax
15.82%
Aframax
13.25%
MR
0.00%
19.45%
5.00%
10.00%
15.00%
20.00%
25.00%
Source: IMO – MEPC 67/INF:4
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SEEMP RESULTS
12.00
Cargo EEOI
11.00
10.00
9.97
8.98
9.00
8.42
8.83
7.99
8.00
7.00
6.00
2007
2008
Yearly improvement (index 2007) 9.86%
2009
15.50%
2010
11.40%
2011
19.80%
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INT. SHIPPING CONTRIBUTIONS TO GLOBAL CO2
Ships reduce GHG emissions at a higher rate than land
3.50%
2.90%
3.00%
2.50%
2.70%
2.40%
2.80%
2.30%
2.00%
2.20%
1.50%
1.00%
0.50%
0.00%
2007
2008
2009
2010
2011
2012
Source: IMO 3rd GHG Study (2014)
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ACTUAL FUEL CONSUMPTIONS ON SISTER SHIPS
Ships can report annual aggregate fuel consumptions and aggregate values of
some few other relevant transportation data
Naïve to believe it is realistic to establish fair and efficient legally-binding, fleetwide operational efficiency standards
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muchas gracias
dragos.rauta@intertanko.com
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