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Regulatory developments in reducing air emissions from ships European Tugowners Association Annual Meeting Turku 14 - 15 June 2012. Theresa Crossley , Head of Implementation Department. CO 2 estimate for 2012. CO2 emissions for April 2012 in the EU sea area
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Regulatory developments in reducing air emissions from ships European Tugowners Association Annual Meeting Turku 14 - 15 June 2012 Theresa Crossley, Head of Implementation Department
CO2 estimate for 2012 CO2 emissions for April 2012 in the EU sea area (calculated by STEAM, based on AIS data)
Content Greenhouse gases from shipping Global context EU perspective Sulphur in fuel requirements The Problem EU/EMSA activities Alternatives & support Emission abatement methods (scrubbers) Alternative fuels (LNG) 3
GHGs – the global context • General • Shipping contributes to some 3% of total emissions • Shipping’s share of emissions is increasing • UNFCCC • Kyoto Protocol • CBDR principle • IMO • Energy Efficiency Design Index (agreed in 2011, applies to new ships only) • Operational measures (up to 20% reduction) • Potential Market-based measures • Estimates Reduction of GHG emissions could lead to savings in fuel costs of up to 125 billion $/ year (globally, according to IMO figures) 4
Adoption of EEDI by IMO in July 2011 • Expected to reduce GHG emissions 20% by 2030, compared to ‘do-nothing scenario’ • Will lead to significant fuel cost reductions for the sector (around 50 billion $ per year by 2020) • Does not cover existing ships • By its self, insufficient to reduce GHG emissions from shipping compared to base year 2005 or 2010 • Does not address operational measures to reduce emissions • => Need for additional market-based measures
Market-based measures • Levy & Fund • A global levy on fuel, fund to finance reduction measures • How to ensure global participation, incentives? • Administration • Evasion • ETS • Cap and trade (creation of a market) • ’Open’ system • Cap setting, allowances and revenues • Monitoring and enforcement • Combination • EEDI-credits and/or Operational index 6
The EU context • Reduction targets • Contracting party to Kyoto Protocol • Preference for IMO Action but Regional Measures if no • IMO measures by end of 2011 • EU ETS • Heavy industries • Aviation included in 2012 • Application to Shipping • Only sector excluded • 2009 Commission study seems to favour ETS • Diverging views among Member States • Any option raises important issues of scope, implementation, legal constraints etc. 7
Proposal for the inclusion of GHG emissions from maritime transport in the EU's reduction commitments - Impact Assessment • Compensation fund • Industry- or publically-managed compensation fund (contribution- or target-based) • Emissions trading • Inclusion of the shipping sector in an emissions trading scheme • Taxation • Taxation of fuel or GHG emissions • Mandatory ship-level emission reductions • With and without credits trading
EMSA studies on EEDI • Purpose: test ‘robustness’ • Apply to recently built ships (conventional ship types) • Different ship types • Regional variations? • Outcome: • Mature and simple for most ocean-going cargo ships • But not for all ships (small, purpose-built and ro-ro) • No simple solution available for how to calculate efficiency for these ship types 9
Content Greenhouse gases from shipping Global context EU perspective Sulphur in fuel requirements The problem EU/EMSA activities Alternatives Scrubbers LNG 10
WHY? Health Acidification Eutrophication
Directive 2005/33/EC as regardsthesulphurcontentof marine fuels (amendment to 1999/32/EC • Enteredinto force: August 2005 • Introducedfrom MARPOL: onlythesulphurrelated SECA requirements (up to now). • In addition: Passenger Ships1.5% and 0.1 % for ships at berth “Implementation of low sulphur limit on fuel by ships while they are at berth in Community ports is essential to improve ambient air quality”.
The Sulphur Emission Control Area (SECA) Countries with water only in SECA Countries with part of the coast in SECA Countries without coast in SECA Has not signed the Marpol convention Geographical area of the SECA
Politicalagreementonsulphur rules in EU Aligning the EU Sulphur Directive with the IMO's fuel quality standards for SECAs, i.e. 0.1% sulphur content of fuels as from 1 January 2015 (down from the present 1.5%); Introduction and fixing of the 0.5% global fuel standard as from 1 January 2020 (down from 4.5%) in EU waters, including passenger ships. A request to the Commission to assess the impacts of applying 0.1% fuel standard in the EU Member States' territorial waters as part of the 2013 air quality review; Strengthening the provision on sanctions.
Implementation of the Sustainable Waterborne Transport Toolbox • The Commission, in cooperation with EMSA and relevant stakeholders will undertake the implementation of the measures identified in the Toolbox: • Stakeholders consultation – with stakeholder groups • Filling the regulatory gaps • Facilitating advanced green technology and alternative fuels • Development of adequate green infrastructure and superstructure • Market observation and enforcement
Alternativemeasures Emission abatement technologies (scrubbers) and switch to LNG are feasible and cost-effective alternatives, depending on the case 1. Scrubbers • Technology exists (some operational problems) 2. For LNG, broader environmental and operational benefits, • Infrastructure in ports is so far incomplete for a larger use
LNG • Promising in theory, several environmental benefits • Tested in practice (some 40 ships+ Viking Grace) • Technical solutions to a large extent available (industry-led) • Infrastructure • Concern: regulatory side (safety of bunkering, navigational requirements etc.)
Implications for the Tug Industry • CO2 • EEDI – not applied to the tug industry yet • Other ship types >400 GT will be added later (by 2017) • Not apply to ships solely engaged in voyages within waters of the flag state. • Each Party should ensure these ships act in a manner consistent, so far as is reasonable and practicable. • SEEMP - All ship types >400 GT - certification • the first intermediate or renewal survey, whichever is the first, on or after 1 January 2013 • European proposals – thresholds not set • SO2 • Applicability of both global (4.5% to 0.5% in 1/1/2020) and local sulphur targets in fuel (SECA’s 1.5% to 0.1% by 1/1/2015 and 0.1% in port) 18
http://www.emsa.europa.eu/ Thank You Theresa.Crossley@emsa.europa.eu