Roundtable Associations: Timing Not Right for MBM

Intertanko
Wednesday, February 22, 2012

The RT fully supports the adoption at IMO of mandatory Energy Efficiency Design Index (EEDI) for new ships and the Ship Energy Efficiency Management Plan (SEEMP) for all ships.  It is convinced that the SEEMP will allow shipowners to better gauge their energy consumption and thereby enhance existing operational efficiency, since fuel is the single highest operational cost factor and this fact alone has already induced ship-owners to become more energy efficient.

 

In the event that Market Based Measures (MBMs) are eventually introduced to shipping by IMO, these should apply globally and should completely address the nine principles adopted by IMO, it says.

 

If ultimately it is found that technical and operational measures cannot wholly meet the agreed reduction targets, then any funds generated by means of a globally applied MBM for shipping must be controlled by IMO, says the RT, and, in large part, be disbursed to support further technological development focused on energy efficiency in shipping.  It further maintains that the collection and distribution of such funds should be based on a very simple, transparent, verifiable and auditable scheme which minimises any additional bureaucratic and financial burdens on shipping companies.

 

The RT does not believe that an Emissions Trading Scheme (ETS) can be practically and effectively applied to shipping, as the shipping industry in concept and functionality is global and relies on mobility, diversity, open access to markets and free trade. It stresses that the very complexity of international seaborne trade renders the concept of ETS unworkable for the shipping industry.   

 

The RT strongly believes that the debate about any shipping MBM must be held at IMO where the nature of the industry is understood and the ultimate impact of a fiscal measure can be measured. Under no circumstances does the RT believe that shipping should be subject to a separate UNFCCC or regional MBM as well as an MBM under IMO. 

 

Round Table associations position paper on GHG+MBMs

 

Shipping is a global industry where all players are competing for the same cargo on reasonable and equitable terms. The system of international trade carried by sea must be based on a transparent and harmonised set of rules and regulations that apply to all, irrespective of nationality or location. The International Maritime Organization has consistently demonstrated its ability to develop globally acceptable regulatory instruments for shipping and the Round Table of international shipping associations (RT) believes that IMO should be allowed to complete its work on CO2 emissions from ships without obstruction from regional and national bodies with specific agendas.  It is far preferable that all States and IGOs bring their knowledge and, when agreed, their requirements to the IMO in order to contribute to a truly global solution.  The ultimate goal of the RT is the adoption of a meaningful international regulatory instrument that will provide for real and efficient GHG emission reduction controls in a fair, non-discriminatory and orderly fashion.

 

The RT fully supported the adoption at IMO of the mandatory Energy Efficiency Design Index (EEDI) for new ships and also the Ship Energy Efficiency Management Plan (SEEMP) for all ships as effective regulation of CO2 emissions. Furthermore, the RT is convinced that the SEEMP will allow shipowners to better gauge their energy consumption, in their efforts to enhance existing operational efficiency. Fuel is the single highest operational cost factor and this fact alone has already induced ship-owners to become more energy efficient. The SEEMP will provide the framework allowing shipowners a degree of flexibility in how best to adapt it to individual ships.

 

It is the task of Governments to establish realistic and achievable relative targets for CO2 emissions, duly recognising the characteristics of a particular industry and in proportion to the amount of CO2 emitted by that particular industry. In order to ascertain what constitutes a realistic target, governments should collect and provide exact and reliable data. For the shipping industry, the main objective remains to limit the emission of CO2 from ships whilst fulfilling the industry’s irreplaceable role in the global supply chain. That shipping is the most environmentally friendly and cost-effective mode of transportation per ton/mile is uncontested, supported by the evidence that around 90% of world trade is transported by sea. Once governments have established realistic and globally accepted relative emission reduction targets for shipping, shipowners and operators will be much better equipped to explore further all possible technical and operational means of meeting those targets.

 

The RT is of the view that Market Based Measures (MBMs) are not justified at this particular time. In the event that Market Based Measures (MBMs) are eventually introduced to shipping, these should apply globally and should completely address the nine principles adopted by IMO: Effective; Binding and equally applicable; Cost-effective; Limiting distortion; Not penalising trade and growth; Goal-based; Promoting R&D; Accommodating energy-efficient technology; Practical, transparent, fraud-free and easy to administer. The RT supports regulation that provides incentives for owners to invest in low-carbon technology. If ultimately it is found that technical and operational measures cannot wholly meet the agreed reduction targets, then any funds generated by means of a globally applied MBM for shipping must be controlled by IMO and, in large part, be disbursed to support further technological development focused on energy efficiency in shipping.  Collection and distribution of such funds should be based on a very simple, transparent, verifiable and auditable scheme which minimises any additional bureaucratic and financial burdens on shipping companies.

 

While fully acknowledging the existence of the UNFCCC “Common But Differentiated Responsibility” (CBDR) principle, the RT is of the view that this principle cannot be practically applied to ships in light of the very nature of international shipping operations. The RT therefore prefers the non-discriminatory principle of the IMO Convention generally referred to as “no more favorable treatment”, in order to maintain a level playing field for international shipping. Before finally deciding on an MBM for international shipping, a cost/benefit analysis and impact assessment should be completed paying particular attention to impacts on the industry, the global supply chain and developing countries. The RT strongly defends these fundamental conditions in line with its objective of promoting fair business practices and defending free trade as well as open access to markets.

 

The RT does not believe that an Emissions Trading Scheme (ETS) can be practically and effectively applied to shipping, as the shipping industry in concept and functionality is global and relies on mobility, diversity, open access to markets and free trade.  A ship and its cargo constitute a moving asset serving a range of stakeholders including shipowners and charterers, and spanning several importing and exporting countries. The very complexity of international seaborne trade renders the concept of ETS unworkable for the shipping industry.  In addition, the effects of an ETS based on full auctioning will severely impact world trade and unfairly penalise shipping

 

The RT recognises the political reality of the Green Fund agreed by member States at UNFCCC. However it believes that the debate about any shipping MBM must be held at IMO where the nature of the industry is understood and the ultimate impact of a fiscal measure can be measured. In any event, whereas shipping will continue to find solutions to reduce its carbon footprint, any contribution in the form of MBMs should only be at a level proportional to shipping’s share of total global carbon emissions.  Under no circumstances does the RT believe that shipping should be subject to a separate UNFCCC or regional MBM as well as an MBM under IMO. 
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Carnival Sails to Profit

The world's largest cruise company Miami-based Carnival Corp reported a net profit of $49 million, or 6 cents per share in the first quarter ended Feb. 28.   That

Ukraine Arrests Turkish Ship for Visiting Crimean Port

Turkey owned merchant ship flying the flag of Tuvalu was arrested by Ukrainian authorities over a visit it made to a port in Crimea, reports Reuters. The ship's captain detained.

USCG Flush Ice down River Systems to Facilitate Shipping

The Coast Guard cutter fleet is flushing ice through the Great Lakes river systems to prevent ice jams and facilitate commercial shipping as the shipping season

Marine Propulsion

Schmiedag and Wildauer Schmiedewerke: 'We Forge Partnerships'

Olaf Wiertz, Sales Director at Schmiedag GmbH (SDG) and Wildauer Schmiedewerke GmbH & Co. KG (WSW) said: “We are more than just a supplier to our customers – we are their partner.

Lack of Ship Definition is a Threat to Investors

AKD says the lack of an unambiguous term to describe a ‘ship’ in several jurisdictions represents a potential threat to asset security for financiers, particularly

Rolls-Royce Propulsion for Polar Research Vessel

Rolls-Royce informs it has been awarded a contract by shipbuilder Fincantieri to supply a fully integrated propulsion system for Norway’s new Polar Research Vessel,

Environmental

USCG Flush Ice down River Systems to Facilitate Shipping

The Coast Guard cutter fleet is flushing ice through the Great Lakes river systems to prevent ice jams and facilitate commercial shipping as the shipping season

Chile Desert Rains Sign of Climate Change

The heavy rainfall that battered Chile's usually arid north this week happened because of climate change, a senior meteorologist said, as the region gradually

Mexico Unveils National Strategy ahead of Paris Climate Talks

Mexico on Friday said it will cap its greenhouse gas emissions by 2026, becoming one of the first countries to formally submit its national climate plan the

Fuels & Lubes

EALs & Oil Spill Remediation

EALs & Oil Spill Remediation: The Effects of EALs on Oil Spill and Discharge Reporting and Remediation In the wake of increased environmental scrutiny and potentially expanding liability issues,

Big Spending on Liquefaction Terminals

Capital expenditure (Capex) on global liquefied natural gas (LNG) facilities is expected to total $259 billion over the forecast period 2015-2019, according to

Brent Oil Rises as Euro Gains Against Dollar

Brent oil prices rose on Wednesday as the euro strengthened against the dollar following a boost in business morale in the euro zone's top two economies. The euro was up 0.

Government Update

Mexico Unveils National Strategy ahead of Paris Climate Talks

Mexico on Friday said it will cap its greenhouse gas emissions by 2026, becoming one of the first countries to formally submit its national climate plan the

Mediterranean Rescue Operations Strain Shipping

The Wall Street Journal ran a story yesterday describing how the increasing number of seaborne migrants making the journey from Africa to Europe has not only

Port of Aden Under Threat with Enemy at the Gates

As Saudi Arabia and its Arab allies stage air strikes against Shi'ite Muslim militiamen threatening to topple Yemeni President Abd-Rabbu Mansour Hadi, the southern

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3879 sec (3 req/sec)