Memorandum submitted by International
Maritime Organization (IMO)
BACKGROUND
1 Work on the prevention of air
pollution and control of greenhouse gases emissions from ships
engaged in international trade started within IMO in the late
1980s. The first steps were the out phasing of ozone depleting
substances; both as refrigerant gases and in fire fighting systems.
Later prevention of air pollution in the form of cargo vapours
and exhaust gas were targeted by, inter alia, through the
adoption of strict limits for nitrogen oxides and sulphur oxides
in ship exhausts. In recent years the focus has been on the control
of greenhouse gas (GHG) emissions from ships. IMO as a United
Nation's specialised agency responsible for regulating all aspects
of ships engaged in international trade, plays a key role in ensuring
that lives at sea are not put at risk and that the environment
is not polluted by international shipping—as summed up in
IMO's mission statement: Safe, Secure and Efficient Shipping on
Clean Oceans.
2 Although to date no mandatory
instrument to regulate GHG emissions from international shipping
has been adopted, IMO has given extensive consideration to the
matter and is currently working in accordance with an ambitious
GHG work plan, adopted by the fifty-fifth session of IMO's Marine
Environment Protection Committee (MEPC 55) in October 2006, that
is expected to culminate with adoption of binding regulations
on all ships in 2009.
3 Shipping is probably the most
international of all the world's industries, carrying up to 90%
of global trade by weight, in a cost and energy efficient way,
as well as cleanly and safely around the world. The ownership
and management chain surrounding ship operations can embrace many
countries; ships in international trade; and spend their economic
life moving between different jurisdictions, often far from the
country of ownership or registry. It should be noted that an overwhelming
portion (77% of the tonnage by dead weight) of all merchant vessels
engaged in international trade is registered in developing countries
(countries not listed in Annex I to the UNFCCC).
SHIPPING AND
SUSTAINABLE DEVELOPMENT
4 Shipping is a crucial force in sustainable
development, making a massive contribution to global prosperity
with only a marginal negative impact on the global environment.
Both the poor and the rich benefit from seaborne trade. Moreover,
due to the nature of shipping, developing countries can and do
become major participants in the industry itself and, by so doing,
generate income and create national wealth. However, the significant
increase in global trade and international seaborne transport
over the past decades (500% growth over the past 40 years) has
also brought negative consequences, as does all human and industrial
activity through increased emissions of air pollutants and greenhouse
gases.
MARITIME TRANSPORT
AND SUSTAINABLE
DEVELOPMENT
5 There is no doubt that shipping
is a clean, green, environmentally-friendly and very energy-efficient
mode of transport. Overall, it is only a small contributor to
the total volume of atmospheric emissions. Nevertheless, significant
reductions in harmful emissions from ships and increases in fuel
efficiency have been achieved over the past decades; through enhancements
in the efficiency of engine and propulsion systems and improved
hull design. Larger ships and a more rational utilisation of individual
vessels have also contributed significantly to reducing the amount
of energy needed to transport a given unit of cargo.
6 What is often overlooked in any discussion
about overall levels of GHG emissions from shipping is that the
total amount of shipping activity is not governed by shipping
itself, but by global demand for shipborne trade, and not only
is this high, but it continues to grow. The international shipping
industry is the life blood of the global economy. Without shipping,
it would simply not be possible to conduct intercontinental trade,
to transport raw materials in bulk or to enable the import and
export of affordable food and manufactured goods.
IMO'S GHG RELATED
WORK
7 The IMO Assembly adopted, in
December 2003, resolution A.963(23) on "IMO Policies and
Practices related to the Reduction of Greenhouse Gas Emissions
from Ships", urging the Marine Environment Protection Committee
(MEPC) to identify and develop the mechanisms needed to achieve
limitation or reduction of GHG emissions from international shipping.
The Assembly resolution requests the IMO Secretariat to continue
co-operating with the Secretariats of UNFCCC and the International
Civil Aviation Organization.
IMO STUDY ON
GREENHOUSE GAS
EMISSIONS FROM
SHIPS
8 The 2000 IMO GHG Study is the
most comprehensive assessment to date of the contribution made
by international shipping to climate change. The Study estimated
that in 1996, ships contributed about 1.8% of the world's total
CO2 emissions, and clearly stated that there is no other mode
of transport with a better CO2 record in specific terms.
9 The 2000 IMO GHG Study is currently
being updated to facilitate future decisions. The contract for
the update was awarded to an international consortium of renowned
research institutions, co-ordinated by MARINTEK of Norway. The
updating has been divided into two phases:
1. Phase 1, covering a CO2 emission inventory
from international shipping and future emission scenarios, will
be reported to IMO by August 2008 for consideration by MEPC 58
in October 2008; and
2. Phase 2, also covering greenhouse gases other
than CO2 and other relevant substances in accordance with the
methodology adopted by UNFCCC, as well as the identification and
consideration of future reduction potentials by technical, operational
and market-based measures, will be submitted to IMO by February
2009 for consideration by MEPC 59.
10 The preliminary conclusions on Phase one
of the updated study was conveyed to an intersessional meeting
in June this year. The main conclusion of the study was that the
contribution of international shipping to global CO2 emissions
from ships above 100 GT engaged in international trade was deemed
to be 843 million tonnes in 2007 or 2.7% of the world's total
anthropogenic CO2 emissions. The report also indicates that this
percentage would rise to 3.3% (1,091 million tonnes) if ships
in domestic trade and fishing vessels are included. The study
projected ship's CO2 emissions to grow by a factor of 2.4 to 3.0
by 2050, assuming there are no explicit regulations (base scenario)
on CO2 emissions from ships. For 2020, the base scenario predicts
increases ranging from a factor of 1.1 to 1.3. These predictions
take into account significant efficiency improvements resulting
from expected long-term increases in energy prices.
GHG CONSIDERATIONS
WITHIN IMO
11 MEPC 57 was held in London from 31 March
to 4 April 2008 and considered further follow-up actions to resolution
A.963(23) on "IMO policies and practices related to reduction
of greenhouse gas emissions from ships", including the progress
made in line with the "GHG Work plan to identify and develop
the mechanisms needed to achieve the limitation or reduction of
CO2 emissions from international shipping".
12 The Secretary-General of IMO highlighted
the need for IMO and the maritime community as a whole to act
in concert with, and contribute to, the wider international efforts
aimed at swift and substantive action to combat climate change
under the UNFCCC process, by proactively addressing the principles
and objectives enshrined in the roadmap agreed at the Bali Conference,
out of genuine concern for the atmospheric environment. He stressed
the importance for the Committee to ensure that the complex challenges
associated with the limitation and control of greenhouse gas emissions
from shipping were properly understood by the international community
and that IMO should continue to show leadership, not only by moving
in parallel, but also keeping one step ahead of the agreed UNFCCC
process.
13 MEPC 57 decided, by overwhelming majority,
to take the principles listed below as its reference for further
debate on GHG emissions from international shipping and also for
further reflection on the nature and form of the measures to be
taken. A coherent and comprehensive future IMO framework should
therefore be:
1. effective in contributing to the reduction
of total global greenhouse gas emissions;
2. binding and equally applicable to all flag
States in order to avoid evasion;
4. able to limit, or at least, effectively minimize
competitive distortion;
5. based on sustainable environmental development
without penalising global trade and growth;
6. based on a goal-based approach and not prescribe
specific methods;
7. supportive of promoting and facilitating technical
innovation and R&D in the entire shipping sector;
8. accommodating to leading technologies in the
field of energy efficiency; and
9. practical, transparent, fraud free and easy
to administer.
14 A number of delegations expressed reservations
on the principle stated in paragraph 13.2 above. The Chairman
proposed to carefully reflect on the contested principle in the
intersessional period and the intention of the reflection would
be to reach consensus on the issue of the principles at the next
session of the Committee. MEPC 57 accepted the proposal of the
Chairman and encouraged Member States to submit their views to
that session.
INTERSESSIONAL MEETING
HELD IN
JUNE 2008
15 The first Intersessional Meeting of the Working
Group on Greenhouse Gas Emissions from Ships (GHG-WG 1), which
was attended by more than 210 delegates comprising experts from
all over the world, was held in Oslo, Norway, in June 2008. The
week-long session was tasked with developing the technical basis
for the reduction mechanisms that may form part of a future IMO
regime to control GHG emissions from international shipping, for
further consideration by MEPC 58 in October 2008.
16 The intersessional meeting in Oslo addressed
market-based, operational and technical measures needed to achieve
limitation or reduction of GHG emissions from international shipping.
17 In particular, the meeting further developed
a formula and the methodology, as well as draft text for the associated
regulatory framework, for a proposed mandatory CO2 Design Index
for new ships based on submissions by Denmark and Japan. Once
finalised, the index will serve as a fuel efficiency tool at the
design stage of ships; enabling the comparison of fuel efficiency
of different ship designs, or a specific design with different
input, such as installed propulsion power, hull shape, choice
of propeller or the use of wind, solar or waste heat recovery
systems. With this outcome, and a number of submissions containing
comments on the formula and proposals to improve the robustness,
MEPC 58 should be in a position to approve the CO2 design index
for new ships and agree on the final details when it meets in
London in early October 2008.
18 The intersessional meeting also considered
the interim CO2 operational index and identified areas where changes
have been proposed. The interim CO2 operational index was adopted
by MEPC 53 in July 2005 and has been used to establish a common
approach for trials on voluntary CO2 emission indexing, enabling
shipowners and operators to evaluate the performance of their
fleet with regard to fuel efficiency and CO2 emissions. The draft
CO2 Operational Index is put forward to MEPC 58 with the view
to finalising the indexing scheme at that session.
19 The intersessional meeting reviewed best
practices for voluntary implementation and developed further guidance
for the ship industry on fuel efficient operation of ships. The
meeting considered best practices on a range of measures as identified
by earlier sessions of MEPC and how they can be implemented by
ship builders, operators, charterers, ports and other relevant
partners to make all possible efforts to reduce GHG emissions
from ship operations. Operational measures have been identified
as having a significant reduction potential that can often be
achieved without large investments, but would require cooperation
with a range of stakeholders such as those identified above.
20 The Oslo meeting had a thorough and in-depth
discussion related to the further development of different economic
instruments with GHG reduction potential. Including, inter
alia: a global levy on fuel used by international shipping,
and the possible introduction of global emissions trading schemes
for ships in international trade. Proposals for both open emission
trading schemes, where ships will be required to purchase allowances
in an open market; in line with power stations or steel mills,
and closed schemes; where trading will only be among ships, were
considered. Grandfathering or auctioning of the allowances, how
the cap is set and by whom, managing of any system, banking of
allowances and the impact on world trade, as well as legal aspects,
were also among the issues considered. The meeting had an extensive
exchange of views paving the way for further discussion at MEPC
58 in October on possible introduction of market-based measures
to provide incentives for the shipping industry to invest in fuel
efficient ships. However, there are still obstacles to be surmounted
on how to observe the basic rules of IMO on non-discriminatory
rules applicable to all ships irrespective of the flag they are
flying, and at the same time respecting the special needs and
circumstances for developing countries.
FURTHER GHG CONSIDERATIONS
WITHIN IMO
21 MEPC 58 will be held in London from 6 to
10 October 2008 and will further consider the reduction mechanisms
developed by the intersessional meeting, with a view to developing
further an IMO regime applying to all ships. MEPC 58 is also expected
to consider the related legal aspects and decide whether the GHG
regulations should form part of an existing convention or whether
an entirely new instrument should be developed and adopted.
22 MEPC 58 will also decide on the work needed
prior to MEPC 59, to be held in July 2009, when the final adoption
of a coherent and comprehensive IMO regime to control GHG emissions
from ships engaged in international trade is planned.
THE WAY
AHEAD
23 MEPC 59 is expected to adopt the first global
mandatory GHG regulations and efficiency standards for any international
industry. This first package will comprise technical and operational
measures that most probably will include a mandatory CO2 design
index for all new ships, and a requirement for energy efficient
operation of ships through the introduction of a mandatory energy
efficiency management tool. The mandatory technical and operational
requirements may form part of the existing regulations to prevent
air pollution from ships contained in Annex VI to the MARPOL Convention.
MEPC 59 is also expected to adopt non-mandatory mechanisms such
as guidelines for best practices and CO2 operational indexing
to complement the mandatory instrument.
24 MEPC 59 is further expected to have in place
the needed framework for a future market-based instrument (eg
an emission trading scheme or a fuel levy mechanism) and to agree
on the timeframe for this part of the work.
25 The fifteenth Conference of Parties (COP
15) to the UNFCCC will be held in Copenhagen in December 2009,
to adopt the successor instrument to the Kyoto Protocol. The Secretary-General
of IMO will submit a position paper to COP 15, informing the Conference
of the outcome of MEPC 59 on the mandatory and non-mandatory instruments,
as well as the agreed work on a possible market-based instrument,
to enable the shipping sector to offset its growing emissions
in other sectors.
26 IMO will continue its Endeavours to reduce
any environmental impacts from international shipping, a transport
industry that is vital to world trade and sustainable development.
25 September 2008
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