Page 58 - European Energy Innovation - spring 2018 publication

58 Spring 2018 European Energy Innovation

SHIPPING EMISSIONS

Reducing Shipping’s Emissions

By Simon Bennett (pictured), Deputy Secretary General, International Chamber of Shipping

As the global trade association for ship operators, the International Chamber of Shipping (ICS) is
immersed in complex negotiations with it global regulator, the UN International Maritime Organization
(IMO), to further reduce the industry’s atmospheric emissions. These involve the successful
implementation of a global sulphur cap in 2020, and the development of an ambitious strategy to
further reduce the sector’s CO2 emissions.

One of the most pressing The cost of low sulphur fuels is 2020, providing governments with
challenges facing ship currently about 50% more than the an additional tool to verify full
operators is the impact cost of residual fuel, which is that most compliance.
of the IMO global cap commonly used by most ships today.
on the sulphur content of marine fuel, In response to the greatly increased Now that the 2020 date is fast
which will come into full effect on 1 demand for low sulphur fuels that will approaching, ship operators and
January 2020. arise in 2020, the cost compared to the oil refiners must urgently prepare
current price of residual fuels is likely for implementation. The oil refining
The 2020 global sulphur cap is the to increase considerably. industry in particular will need to take
requirement under the IMO MARPOL important decisions to ensure that
Convention for all ships trading ICS has no reason to think that sufficient quantities of compliant fuel
outside of sulphur Emission Control there will be anything other than full will indeed be produced.
Areas to use fuel with a sulphur compliance by the vast majority of
content not exceeding 0.5%, reduced shipping companies. But in view of With regard to CO2, the vision of the
from the current permitted maximum the huge sums of money involved, this industry is to achieve zero emissions
of 3.5%. has generated speculation about the as soon as the development of new
potential for non-compliance and the fuels and propulsion systems will allow.
This improvement in fuel quality possibility of unfair competition and ICS is confident that new technology
should bring about serious benefits to market distortion. will eventually deliver, whether using
human health in coastal areas. fuel cells or batteries powered by
This new IMO regime is fully In November 2017, the industry renewable energy, new fuels such as
supported by the global industry. But therefore proposed that IMO adopt hydrogen, or some other solution that
the economic impacts of the resultant a ban on the carriage of non- cannot yet be anticipated.
additional fuels costs are likely to be compliant fuels when the global
significant. cap is implemented in January In the meantime, the industry has set
an objective of holding the sector’s
total CO2 emissions below 2008 levels
regardless of projected increases in
demand for maritime trade due to
population growth and economic
development. The industry has also
requested IMO to agree a mid-century
objective for cutting the sector’s total
CO2 emissions on a future trajectory
towards zero emissions.

In April 2018, as requested by the
industry, IMO Member States will
adopt a comprehensive initial strategy
for the further reduction of the
international shipping sector’s total
CO2 emissions, as a response to the
Paris Agreement on climate change.

CO2 emissions from international

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