Page 59 - European Energy Innovation - spring 2018 publication

Spring 2018 European Energy Innovation 59

SHIPPING EMISSIONS

shipping were about 8% lower in The adoption this April by IMO of an
2015 than in 2008, despite a 30% ambitious CO2 reduction strategy will
increase in maritime trade. Delivered be a significant achievement as it will
with a combination of technical need to take account of the legitimate
and operational measures, this is concerns of emerging economies,
an impressive level of reduction, such as China and Brazil, about the
especially as shipping has no control potential impacts on their economic
over the ever increasing demand for development, consistent with the UN’s
its services. Sustainable Development Goals.

Moreover, as a result of amendments Hopefully, the high level of ambition
to the MARPOL Convention adopted that will be established by IMO will
by IMO in 2011 – the first such global be sufficient to discourage regional
agreement to apply to an entire action by the likes of the EU. Unilateral
industrial sector – new ships delivered responses would have disastrous
from 2025 must be at least 30% more consequences for the global maritime
CO2 efficient than ships constructed regulatory regime that is vital to ensure
before 2013. the provision of efficient maritime
services. But most importantly, the
In addition to agreeing some high dramatic reduction of CO2 from
levels of ambition for the further the shipping on a global basis can only be
reduction of the sector’s total CO2 achieved through measures adopted
emissions, IMO is also expected to for global application by IMO. l
agree a comprehensive list of potential
candidate measures for achieving
these objectives.

Most controversial is applying some
kind of Market Based Measure
(MBM) to international shipping. The
industry remains deeply sceptical
about MBMs as a means of further
incentivising CO2 reduction. Fuel
is already by far the largest cost for
shipowners, and this is expected to
increase dramatically as a result of the
2020 sulphur cap. But in the event
that IMO decides to develop an MBM,
the clear preference of the industry
would be for a fuel levy payable to
come kind of IMO climate fund, being
a mechanism least likely cause market
distortion, rather than an Emissions
Trading System to which the industry is
completely opposed.

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