SIMS 2010 GHG emissions

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					     SIMS 2010

Reducing Greenhouse Gas
 Emissions from Shipping
    2 September 2010
       Peter M Swift,
                Reducing Greenhouse Gas
                 Emissions from Shipping

•    Key Dates

•    UNFCCC and IMO Programmes

•    Industry Initiatives

•    Market Based Mechanisms (Panel discussion)

UNFCCC = United Nations Framework Convention on Climate Change
                 Reducing Greenhouse Gas
                  Emissions from Shipping
Selected Key Dates

12/2009        UNFCCC COP15 Meeting, Copenhagen
3/2010         IMO MEPC 60
2010           IMO MBM-Expert Group
               IMO MEPC Intersessional (EEDI)
2010           UNFCC Interim meetings

9/2010         IMO MEPC 61
11/2010        UNFCCC COP16 Meeting, Cancun
7/2011         IMO MEPC 62
12/2011        EU Deadline for IMO/International Agreement
2012           Kyoto Protocol expires
               UNFCCC - COP15

       What was the outcome ?

                   • NO targets
   • NO resolution of Kyoto/IMO Treaty conflict
 • NO direct reference to international shipping in
                Copenhagen Accord

          BUT subsequent in discussions:
Shipping is “expected” to make its “contribution” to
        Climate Change measures with $$$$
                 IMO Programme

To develop:

EEDI for new ships (Mandatory)

SEEMP (Mandatory) & EEOI (Voluntary) for all ships

and, if possible/needed:

Market Based Measures for shipping
                  IMO – UNFCCC
     Conflicting principles remains a major issue

IMO Principle:
“No More Favourable Treatment”


Kyoto Protocol principle:
“Common But Differentiated Responsibility”
       Reducing Greenhouse Gas Emissions
                 from Shipping
Industry initiatives:
• Work on EEDI (including Tripartite workshops)
• Developing and assessing GHG reduction measures
  for new and existing ships (Tripartite)
• Developing Marginal Abatement Cost Curves
  - what is achievable ?
• Developing operational measures, such as “Virtual
• Developing industry SEEMPs, such as INTERTANKO’s
  TEEMP – Tanker Energy Efficiency Management Plan
• Active participation in MBM Expert Group
Mitigation Measures
Mitigation Measures
                      Virtual Arrival - Summary

• Cooperation between Charterer (Terminal Operator) and Owner
• Speed is “optimised” when ship’s estimated arrival is before the
  terminal is ready
• Owners and Charterers agree a speed adjustment
• May use an independent 3rd party to calculate / audit adjustment
• Owners retain demurrage, while fuel savings and any carbon credits
  are split between parties

Next Steps:
• OCIMF-INTERTANKO running joint workshops
• Charter Parties being reviewed (INTERTANKO/BIMCO/BP/Chevron) –
  indemnity and liability issues, including bills of lading
• Individual oil majors and owners “trialling” system
• Bulk carrier sector examining feasibility
                 Thank you
    For more information, please visit:


London, Oslo. Washington, Singapore and Brussels
         Market Based Measures

• Views of the panellists
• Do we need a Market Based Measure
  for Shipping ?
• IF we are to have an MBM for Shipping,
  what are the most important factors to
  be considered ?

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