1 / 25

The Challenges

What are the viable options for the shipping industry by Erik.Ranheim@INTERTANKO.com Manager Research and Projects London 12 November 2008. The Challenges. The world demands greener shipping Emission from shipping is dirty and harmful for the health and the environment

webb
Download Presentation

The Challenges

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What are the viable options for the shipping industrybyErik.Ranheim@INTERTANKO.comManager Research and ProjectsLondon 12 November 2008

  2. The Challenges • The world demands greener shipping • Emission from shipping is dirty and harmful for the health and the environment • GHGs emission from shipping is not directly regulated under the Kyoto protocol • IMO assumed to regulate GHG emission • Must react swiftly

  3. The size of challenge?

  4. CO2 Emissions per Unit Loadby Transport Mode Large Tanker 1 Large Containership 3 Railway 6 Coastal Carrier 11 Standard-size Commercial Truck 49 Small-size Commercial Truck 226 Airplane 398 0 100 200 300 400 Units Relative Shipping energy efficient Source:Ministry of Land, Infrastructure and Transport (Japan): The Survey on Transport Energy 2001/2002 MOL (Japan): Environmental and Social Report 2004 4

  5. Trends – Co2 emission, energy use, global trade Index There has been strong growth in shipping Source: Fearnleys/INTERTANKO

  6. Engine break specific fuel consumption g per kWh Source: Lloyd’s Register Fuel efficiency in shipping has has improved

  7. Measures for current ships essential Fleet Cleaner, Simpler and more Efficient ships Above 400 GT: 63,600 ships 11,200 on order 26,000 <15 years Source: LRFairplay

  8. Industry Initiatives

  9. Switching to cleaner fuel will Reduce overall global emissions from ship funnels and will therefore in addition leading to a much cleaner and sounder environment Reduce the amount of GHGs, due to Less fuel consumption, and The switch to cleaner fuelwill provide better opportunities for developing more fuel efficient engines Cleaner, Simpler and more Efficient ships Revision of Annex VI will also reduce CO2 emission

  10. OPTIMISING SPEED

  11. Industry initiativesShip Efficiency Management Plan SEMP • SEMP for each ship in operation • SEMP to contain: • Best practices to save energy • Voluntary Operational Index (for each voyage & over a period of time/voyages) • Other voluntary operational measures • Energy inventory • INTERTANKO, ICS, BIMCO, INTERCARGO work on a model SEMP guideline for IMO

  12. Industry initiativesShip Efficiency Management Plan • INTERTANKO Best Practices – to be approved by the Council (Nov. 2008) • OCIMF “Energy Efficiency and Fuel Management” – an appendix to TMSA 2 • OCIMF opens for consideration of c/p terms to optimise the voyage and other operations to save energy during transportation

  13. Best Practice on tanker emissions & energy efficiency 1. Programme for measuring and monitoring ship efficiency 2. Voyage optimization programme • Speed selection optimization • Optimised route planning • Trim optimization 3. Propulsion Resistance Management Programme • Propeller Resistance • Hull Resistance

  14. Best Practice on tanker emissions & energy efficiency 4. Machinery optimisation Programme • Main Engine monitoring and optimisation • Optimisation of lubrication as well as other machinery and equipment 5. Cargo handling optimization • Cargo vapours control procedure on all crude tankers (80-90% vapour reduction) Cargo temperature control optimization 6. Energy conservation awareness plan • On board and on shore training and familiarisation of company’s efficiency programme • Accommodation-specific energy conservation programme

  15. Best Practices Advice, input: *Class *Charterers *Yards *Other owners *Others Participation from a wide range of tankers Applicability/effectiveness Dynamic continuous improvement INTERTANKO Membership 3,100 tankers Various, individual measures Monitoring, assessment Adjustment/corrective action Depend on fleet characteristics INTERTANKO a forum for exchange of information and experience

  16. Proposals in IMO

  17. Fuel efficiency design index • Measuring stick for shipbuilders to assess fuel efficiency/CO2 emissions • Incentive for shipyards will create energy efficient designs to be competitive • Wide support in IMO, except • Some developing countries* • Need baseline (what constitutes the best ship today) Sea trial Esther Spirit • All suggestions by INTERTANKO on design index formula were agreed at MEPC 58: • Use value of ME power at 75% MCR • Use AE power at 50% MCR • SFCs at these values are given by the engine’s EIAPP Certificates • Sea trails to be part of the verification

  18. The CO2 operational index • MEPC 58: voluntary tool to monitor each ship’s fuel consumption • An instrument for evaluating quantitatively the effect of operational fuel efficiency measures, such as speed reduction or optimum navigation • No direct link to design index • Monitored over time by a Rolling Average of the fuel consumption per tonne mile for last 10 voyages (as proposed by the industry)

  19. Average CO2 emission Aframax Grams/tonne mile Voyage 13: 152 grams per tonne-mils

  20. Advantage of the rolling average Average CO2 Index

  21. A Market Based Instruments (MBI) should • Reduce CO2 emission levels in real terms by additional amounts to normal reductions • Not unduly distort competition • Ensure simple allocations of emission allowances • Be non-discriminating of ship types and flags • Be difficult to evade. • Be acceptable to Kyoto Annex I as well as developing countries. • Be legally, politically and institutionally acceptable. • Be easy to administer, monitor and enforce. • Preferably be global and regulated by IMO

  22. Levy on bunkers - Danish proposal Challenges: • Legal, competence to establish such a scheme • Administrative who sets, collect, disburses and monitors revenues, and • For what purpose, and • Will it lead toactual emission reduction? Met with resistance and regarded as tax • Possible application of an independent international GHG fund: • Acquisition of emission quotas/credits generated in other industrial sectors • Funding projects in developing nations • Funding IMO Technical Cooperation program

  23. International Compensation Fund for GHG Emissions from Ships • International Compensation Fund to be passed on to the customers, i.e. • No direct effect on the operators • Independent of the value of the goods being transported • Must be global, independent of flag • Based on United Nations Convention on the Law of the Sea (UNCLOS) • Principle of no more favourable treatment of ships applied through Port State Control • Based on UNFCCC principle of common but differentiated responsibilities and capabilities • Should be allocated to specific compensation aims to be decided by the contracting parties • Proposed by Denmark, Ref International Oil Pollution Compensation Funds (IOPC)

  24. Conclusion

  25. Shipping set for reduction in emission to air • Cleaner, reduced emission from shipping under way, by • Sharing of information to develop Best Practices will reduce emission, and • Technical advances to improve fuel efficiency and reduce CO2 emission will be made • Market based instruments are controversial and complicated – but may be introduced on regional basis (ref. Europe) • INTERTANKO prepared to continue to take the lead and to be a driver in terms of practical and realistic measures for the industry

More Related