29 July 2016 Global Shippers Forum AGM Colombo, Sri Lanka
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1 29 July 2016 Global Shippers Forum AGM Colombo, Sri Lanka MARPOL Annex VI an update of international regulatory developments for prevention of air pollution and the energy efficiency of ships Dr Edmund Hughes Head, Air Pollution and Energy Efficiency Marine Environment Division
2 International Maritime Organization (IMO) A specialized agency of the UN The IMO Convention adopted in 1948 and IMO first met in Member States Consultative organizations e.g. ICHCA Develop and maintain a comprehensive regulatory framework for shipping Safety, environment, legal matters, technical co-operation, security and the efficiency of shipping Safe, secure and efficient shipping on cleaner oceans 2
3 Why regulate emissions from ships? Shipping transports approximately 90% of global trade by volume Marine diesel exhaust impacts human health and environment Source: Third IMO GHG Study
4 IMO s work to address air pollution from international shipping In 1991 IMO Assembly adopted Resolution A.719(17) Prevention of Air Pollution from Ships Resolution instructed MEPC to prepare a new Annex to MARPOL to provide requirements to prevent air pollution from ships Air Pollution Conference 1997 Adopted a Protocol to MARPOL adding a new Annex VI Regulations for the Prevention of Air Pollution from Ships Adopted resolution 8 CO 2 emissions from ships - MEPC to consider what CO 2 reduction strategies may be feasible 4
5 MARPOL Annex VI Ratification Number of Contracting States (as of June 2016): 86 The combined merchant fleets of which constitute approximately 95.34% percent of the gross tonnage of world's merchant fleet Entered into force 19 May 2005 Annex I Annex II Annex III Annex IV Annex V Annex VI Oil Noxious Liquid Substances carried in bulk Harmful Substances carried in Packaged Form Sewage Garbage Air Pollution & Energy Efficiency 5
6 MARPOL Annex VI chapter 3: requirements for control of emissions from ships Ozone-depleting substances (regulation 12) Nitrogen oxides (regulation 13) Sulphur oxides and particulate matter (regulation 14) Volatile organic compounds (regulation 15) Shipboard incineration (regulation 16) Reception facilities (regulation 17) Fuel oil availability and quality (regulation 18) IAPP Certificate International Air Pollution Prevention Certificate 6
7 Standards for the sulphur content of fuel oil used onboard ships Fuel oil % sulphur Review completion by Time Non-ECA ECA 7
8 IMO Designated Emission Control Areas (ECAs) North Sea and Baltic Sea ECAs SOx (+ NOx?) North American ECA SOx, PM and NOx U.S. Caribbean Sea ECA - SOx, PM and NOx 8
9 Fuel oil availability review Regulation 14.8 of MARPOL Annex VI sets out a review provision: A review of the standard set forth in regulation 14.3 [0.50% sulphur limit] shall be completed by 2018 to determine the availability of fuel oil to comply with the fuel oil standard set forth in that regulation and shall take into account the following elements:.1 the global market supply and demand for fuel oil...2 an analysis of the trends in fuel oil markets; and.3 any other relevant issue. IMO MEPC 68 (May 2015) approved Terms of Reference for the assessment of fuel oil availability review and established a Steering Committee to oversee the review. Outcome of the review to be presented at MEPC 70 (October 2016). MEPC 69 (April 2016) agreed, in principle, that a final decision on the date of implementation of the 0.50% sulphur limit should be taken at MEPC 70, so that maritime Administrations and industry can prepare and plan accordingly. 9
10 United Nations Framework Convention on Climate Change COP 21 (21 st session the Conference of the Parties), Paris, 30 Nov. to 12 Dec Kyoto Protocol (Article 2.2) The Parties included in Annex I shall pursue limitation of emissions of GHG from marine bunker fuels, working through the International Maritime Organization KP commitment period ends 2020 Paris Agreement No specific reference to shipping in the final agreement Focus on nationally determined contributions Target is a temperature increase well below 2 o C 10
11 IMO work to address GHG emissions from ships IMO Resolution A.963(23) IMO Policies and Practices Related to the Reduction of Greenhouse Gas Emissions from Ships, adopted by Assembly 23 in December 2003 IMOs work to address GHG emissions has three distinct routes: 11 Technical Mainly applicable to new ships - EEDI Operational Applicable to all ships in operation SEEMP Market-based Measures (MBM) Carbon price for shipping, incentive, may generate funds
12 Fundamental principles as a basis for future regulations on GHG emissions from ships* (MEPC 57, April 2008) 1. Effective in contributing to the reduction of total global GHG emissions; 2. Binding and equally applicable to all flag States in order to avoid evasion; 3. Cost-effective; 4. Able to limit, or at least, effectively minimize competitive distortion; 5. Based on sustainable environmental development without penalizing global trade and growth; 6. Based on a goal-based approach and not prescribe specific methods; 7. Supportive of promoting and facilitating technical innovation and R&D in the entire shipping sector; 8. Accommodating to leading technologies in the field of energy efficiency; and 9. Practical, transparent, fraud free and easy to administer. *Brazil and China reserved their position 12
13 Potential energy efficiency improvements Source: International Council on Clean Transportation (ICCT), Long-term potential for increasing shipping efficiency through the adoption of industryleading practices, Wang & Lutsey,
14 MARPOL Annex VI chapter 4 : regulations on energy efficiency for ships Resolution MEPC.203(62), entered into force on 1 January 2013 Attained Energy Efficiency Design Index (EEDI) (regulation 20) Required EEDI (regulation 21) Ship Energy Efficiency Management Plan (SEEMP) (regulation 22) Technical co-operation and technology transfer (regulation 23) IEE Certificate International Energy Efficiency Certificate
15 Energy Efficiency Design Index (EEDI) Reference line (EEDI average) Applies to newly built ships of 400 GT and above Reduction factor : X 10% Phase Phase (N/A) Below Y Phase 1~ Required EEDI Y ~ Z 15/20% Required EEDI Above Z 30% Phase Phase IMO shall review Y Z 15
16 Ship Energy Efficiency Management Plan (SEEMP) Operational management tool applicable for all ships of 400 GT and above and includes: Improved voyage planning (weather routeing/just in time arrival at port) Speed and power optimization Optimized ship handling (ballast/trim/use of rudder and autopilot) Improved fleet management Improved cargo handling Energy Management Monitoring tools (Energy Efficiency Operational Indicator [EEOI]) 16
17 Third IMO GHG Study 2014 Download as free ebook from: 17
18 Third IMO GHG Study 2014 Study found that, for international shipping, the CO 2 estimate dropped from 2.8% in 2007 to 2.2% in 2012 Year Global CO 2 1 Total shipping IMO GHG Study 2014 CO 2 Percent International shipping of global Percent of global ,409 1, % % ,204 1, % % , % % , % % ,723 1, % % , % % Average 33,273 1, % % 18
19 Third IMO GHG Study 2014 Shipping CO 2 emissions are projected to increase by 50% to 250% in the period to 2050, despite fleet average efficiency improvements of about 40% and in the absence of further regulations Demand is the primary driver Technical and operational efficiency measures can provide significant improvements but will not be able to provide total net reductions if demand continues Changes in the fuel mix have a limited impact on GHG emissions
20 Three-Step Approach to consider further measures to enhance the energy efficiency of ships MEPC 68 (May 2015) agreed to a threestep approach: 1. Data collection 2. Data analysis 3. Decision-making on what further measures, if any, are required Step 1: data collection will provide the basis for an objective, transparent and inclusive policy debate in the MEPC 20
21 Draft amendments to chapter 4 of MARPOL Annex VI Regulation 22A Ships of 5,000 GT and above will be required to submit to their Administration annual reports on fuel consumption and transport work parameters, via a methodology to be included in the SEEMP Administrations will submit aggregate data to the Secretariat, which will maintain an anonymised IMO Ship Fuel Consumption Database If adopted at MEPC 70 in October, regulation 22A is expected to enter into force in Spring
22 Proposed IMO Ship Fuel Consumption Database MARPOL Annex VI, draft appendix IX Information to be submitted: Identity of the ship IMO number Technical characteristics of the ship - Ship type - Gross tonnage (GT) - Net tonnage (NT) - Deadweight tonnage (DT) - Power output (rated power) of main and auxiliary engines (kw) EEDI (if applicable) Ice class (if applicable) Fuel consumption, by fuel type, in metric tonnes and methods used for collecting fuel consumption data Distance travelled from berth to berth, hours not at berth
23 Fuel Consumption Data Collection Process Ship flag State Administration IMO Secretariat IMO Ship Fuel Consumption Database Submits data to flag State or RO in accordance with regulation 22A Data collection methodology to be included in the ship s SEEMP Aggregates data and submits to IMO Secretariat Verifies the ship s SEEMP and the data reported complies with regulation 22A Issues Statement of Compliance to the ship Aggregates all data submitted by flag States, ROs, and non-party ships Provides flag States with anonymized data from the IMO Ship Fuel Consumption Database Data will be anonymised to the extent that individual ships cannot be identified Access to anonymized data will be restricted to IMO Member States only 23
24 Correspondence group on a data collection system for fuel consumption MEPC 69 established a correspondence group on a data collection system for fuel consumption, under the coordination of Japan, and instructed it to: Further develop, with a view to finalization at MEPC 70, the draft amendments to the SEEMP Guidelines to include the methodologies used to collect data required by regulation 22A; Draft guidelines for Administration data verification procedures; Develop an electronic communication and standardized data reporting format; Draft guidelines for the development and management of the IMO Ship Fuel Consumption Database, including means to keep the ships anonymised and to ensure the completeness of the database; and Draft guidelines to address non-party ships submitting data to the IMO Ship Fuel Consumption Database. 24
25 Reduction of GHG emissions from ships Discussion on an MBM for international shipping was suspended at MEPC 65 (May 2013) Several proposals for an MBM have been proposed including: Emissions Trading Scheme (ETS) GHG Fund Efficiency Incentive Scheme (EIS) Ship Efficiency Credit Trading (SECT) Port State Levy (PSL) MEPC 68 (May 2015) considered proposal by Marshall Islands calling for a quantifiable reduction target for greenhouse gas emissions from international shipping MEPC 69 (April 2016) considered further and agreed to establish a working group under this item at MEPC 70, with a view to an in-depth discussion on how to progress the matter 25
26 I commend the IMO for its efforts to combat climate change. Thank you again for your efforts at this crucial moment for the future of humankind. We face many crises, but we also have unprecedented opportunities to end poverty and achieve shared prosperity while protecting the planet Ban Ki Moon, Feb
27 Other relevant studies free to download from IMO website 27
28 All up-to-date regulatory information available from: ex-of-mepc-resolutions-and-guidelines-related-to-marpol-annex-vi.aspx 28
29 Thank you For more information please visit: 29
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