Marine Environment Division International Maritime Organization IMO Environmental Activities - Focus on Reduction of GHG Emissions from Ships Copenhagen 8 December 2009 Karin Sjölin-Frudd Senior Adviser Marine Environment Division International Maritime Organization 1 1

IMO – the International Maritime Organization Safe, secure and efficient shipping on cleaner oceans IMO – the International Maritime Organization - is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships. Member Governments use IMO to draw up internationally agreed standards that can be applied to all ships.   We sum up our objectives in our mission statement: Safe secure and efficient shipping on clean oceans 2

Global coverage 169 Member States All major ship owning nations All major coastal states IGOs and NGOs IMO now has 169 member states, and three Associate members which includes virtually all of the nations of the world with an interest in maritime affairs, be they involved in the shipping industry or coastal states with an interest in protecting their maritime environment. In addition, a number of inter-governmental and non—governmental organizations, representing a wide variety of interests ranging from industry sectors to environmental groups, have consultative status with the Organization and can attend meetings. Their input to the whole process of developing and refining international standards for shipping is greatly valued.   3

Application to real ships SOLAS 159 Parties 99.04% world tonnage Load lines 159 99.02% MARPOL 150 99.14% COLREGS 153 98.36% STCW 153 99.01% The important thing is the application of regulations to real ships. by adopting the consensus approach, the most important conventions covering maritime safety and the prevention of pollution are now applicable to almost 100 per cent of global tonnage. SOLAS – International Convention for the Safety of Life at Sea (1960 and amended 1974) MARPOL – International Convention for the Prevention of Pollution from Ships (1973) COLREGS – Convention on the International Regulation for Preventing Collisions at Sea (1969 and 1972) STCW – International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (1978) 4

Application to real ships More than 50 IMO Conventions Hundreds of codes, guidelines and recommendations Almost every aspect of shipping covered: Design Construction Equipment Maintenance Crew Today there more than 50 IMO treaty instruments and hundred of other measures such as protocols, guidelines, recommended practices and so on. Between them, they influence almost every aspect of shipping and ship operation, including ship design, construction, equipment, maintenance and manning. 5

IMO’s role 51 treaty instruments 21 directly environment related 23 if environmental aspects of the Salvage and Wreck Removal Conventions are included

Summary of Second GHG Study (1/3) Carbon dioxide is the most important GHG emitted by ships International shipping: 2.7% of the global anthropogenic CO2 Absent regulations, ship emissions may grow significantly as a result of growth in shipping 7 7 7

SECOND IMO GHG STUDY 2009 IN 2007, INTERNATIONAL SHIPPING EMITTED: - 870 MILLION TONNES OF CO2; - 2.7% OF TOTAL GLOBAL CO2 EMISSIONS

Summary of Second GHG Study (2/3) Future CO2 emissions for the shipping sector does not harmonise with global need for reduction (policies are needed for the 2° target) 9 9 9

Summary of Second GHG Study (3/3) A significant potential for reduction of GHG through technical and operational measures exits The number of emission reduction options promoted varies between policy options Market-based instruments are the most environmentally effective and cost-effective instruments A mandatory EEDI is a cost-effective instrument to improve the efficiency of new ships 10 10 10

Assessment of Emissions Reduction Potential DESIGN (New ships) Saving of CO2/tonne-mile Combined Concept, speed & capability 2% to 50% 10% to 50% 25% to 75% Hull and superstructure 2% to 20% Power and propulsion systems 5% to 15% Low-carbon fuels Renewable energy 1% to 10% Exhaust gas CO2 reduction 0% OPERATION (All ships) Fleet management, logistics & incentives 5% to 50% Voyage optimization Energy management 11 11 11

Outcome of MEPC 59 MEPC 59 agreed on a package of technical and operational measures MEPC 59 agreed on a work plan to continue developing market-based mechanisms After COP 15: Regulatory action by MEPC 60 (March 2010) and MEPC 61 (September 2010) As per slide.

Technical and operational measures agreed at MEPC 59 Energy Efficiency Design Index (EEDI) for new ships – MEPC.1/Circ.681 Voluntary verification of the EEDI – MEPC.1/Circ.682 Ship Energy Efficiency Management Plan (SEEMP) – MEPC.1/Circ.683 Energy Efficiency Operational Indicator (EEOI) – MEPC.1/Circ.684 As per slide.

TECHNICAL MEASURES ENERGY EFFICIENCY DESIGN INDEX FOR NEW SHIPS (EEDI) - WILL ENABLE SHIP DESIGNERS AND BUILDERS TO DESIGN AND CONSTRUCT INTRINSICALLY EFFICIENT SHIPS - WILL ENCOURAGE SHIP OWNERS TO INVEST IN ENERGY-EFFICIENCY TECHNOLOGIES

Energy Efficiency Design Index Cost: Emissions of CO2 Benefit: Cargo capacity & transport work Complex formula to accommodate most ship types and sizes The Energy Efficiency Design Index (EEDI) provides a figure, expressed in grams of CO2 per tonne mile, that measures the attainable energy efficiency of a specific ship design. It enables the designer to optimize the various parameters at his disposal and provides an energy rating for the ship before it is built. The Index will, therefore, stimulate technical development of all the components influencing fuel efficiency. Through the application of this Index, ships in the near future will have to be designed and constructed intrinsically energy-efficient. The formulation of the Index is rather complex, in that it tries to accommodate a wide range of ship types and sizes. The formula, which I cannot show in the slide because of size and complex structure, may still suffer some modifications before it is agreed by the MEPC in July. 15 15

OPERATIONAL MEASURES: SHIP ENERGY EFFICIENCY MANAGEMENT PLAN (SEEMP) – ONBOARD MANAGEMENT TOOL INCORPORATING: GUIDANCE ON BEST PRACTICES (SLOWER STEAMING; FASTER TURNAROUND; SPECIAL HULL PAINTS; HEAT RECOVERY SYSTEMS; ETC. ENERGY EFFICIENCY OPERATIONAL INDICATOR (ENABLES SHIPOWNER TO MEASURE THE EFFECTIVENESS OF THE ADOPTED EFFICIENCY PRACTICES)

Operational Measures cont. Ship Energy Efficiency Management Plan Onboard management tool to include: Improved voyage planning (Weather routeing/Just in time) Speed and power optimization Optimized ship handling (ballast/use of rudder and autopilot) Improved fleet management Improved cargo handling Energy management The Ship Energy Efficiency Management Plan is being developed, with invaluable input from the shipping industry, as a practical tool to increase the energy efficiency of ships in operation. The Plan’s purpose is to encourage the ship operator to apply the many fuel-saving practices currently available, often referred to as “low hanging fruit”, ready for picking. The most obvious include: - Improved voyage planning (Weather routeing/Just in time); - Speed and power optimization; - Optimized ship handling (ballast/use of rudder and autopilot); - Improved fleet management; - Improved cargo handling; and - Onboard energy management (e.g. engine heat recovery), to name but a few. 17 17

Operational Measures cont. Energy Efficiency Operational Indicator An efficiency indicator for all ships (new and existing) obtained from fuel consumption, voyage (miles) and cargo data (tonnes) Cargo Onboard x (Distance traveled) Fuel Consumption in Operation = Actual Fuel Consumption Index The Energy Efficiency Operational Indicator (EEOI) enables operators to measure the fuel efficiency of a ship in operation. Expressed in grams of CO2 per tonne mile, the indicator enables comparison between individual ships and thereby facilitates adoption of appropriate measures to reduce energy consumption. More importantly, the Indicator makes it possible for operators and crews to monitor the effectiveness of any new measures applied in accordance with the Ship Energy Management Plan. The Energy Efficiency Operational Indicator has been implemented on a trial basis since 2005 and the outcome and experience obtained from hundreds of trials will enable the MEPC in July to adopt a mature and robust tool to gage the operational efficiency of individual ships. 18 18

Objective of the EEOI Evaluation of any changes made to the ship Measuring energy-efficiency at each voyage Evaluation of operational performance by owners or operators Continued monitoring of individual ship Evaluation of any changes made to the ship or its operation MEPC has developed Guidelines for voluntary use of the ship Energy Efficiency Operational Indicator (MEPC.1/Circ.684) to establish a consistent approach for measuring ships energy-efficiency at each voyage or over a certain period of time, which will assist shipowners and ship operators in the evaluation of the operational performance of their fleet. As the amount of CO2 emitted from ships is directly related to the consumption of bunker fuel oil, the EEOI can also provide useful information on a ship’s performance with regard to fuel efficiency. The EEOI enables continued monitoring of individual ships in operation and thereby the results of any changes made to the ship or its operation. The effect of retrofitting a new and more efficient propeller would be reflected in the EEOI value and the emissions reduction could be quantified. The effect on emissions by changes in operations, such as introduction of just in time planning or a sophisticated weather routing system, will also be shown in the EEOI value.

EEOI coverage Can be applied to almost all ships (new and existing ships) Also be applied to passenger ships Cannot be applied to ships not engaged in transport work e.g. research vessel or tug boat The EEOI can be applied to almost all ships (new and existing) including passenger ships, however it cannot be applied to ships that are not engaged in transport work, such as service and research vessels, tug boats or FPSO, as it is transport work that is the input value together with emissions (fuel consumed).

Status of EEOI ・EEOI has been implemented on a trial basis since 2005 ・MEPC 59 agreed the revision of EEOI ・Voluntary use by owner and operators ・Collect information on the outcome and 　experiences in applying the EEOI The Energy Efficiency Operational Indicator has been implemented on a trial basis since 2005 and the outcome and experience obtained from hundreds of trials will enable the MEPC in July to adopt a mature and robust tool to gage the operational efficiency of individual ships. The EEOI is circulated to encourage shipowners and ship operators to use it on a voluntary basis and to collect information on the outcome and experiences in applying the EEOI.

3. MARKET-BASED MECHANISM TO SUPPLEMENT TECHNICAL AND OPPERATIONAL REDUCTION MEASURES BY OFFSETTING EMISSIONS IN OTHER AREAS. CURRENT PROPOSALS: INTERNATIONAL GHG EMISSIONS CONTRIBUTION FUND GLOBAL EMISSION TRADING SCHEME TRADING WITH EFFICIENCY CREDITS (USING EEDI) MOST REVENUES TO BE USED FOR CLIMATE CHANGE MITIGATION AND ADAPTATION IN DEVELOPING COUNTRIES

IMO OBJECTIVES: Copenhagen - Outcome THAT UNFCCC PARTIES CONTINUE ENTRUSTING IMO WITH THE REGULATION OF GHG EMISSIONS FROM INTERNATIONAL SHIPPING; AND THAT THE SUBSEQUENT IMO REGULATORY REGIME BE APPLIED TO ALL SHIPS, REGARDLESS OF THE FLAG THEY FLY.

Welcome to visit our exhibition booth at the Bella Centre for more material and information I thank you for your attention. www.imo.org 24 24

Thank you for your attention! I thank you for your attention. For more information please see: www.imo.org 25 25