1. GHG Emissions from Shipping EPRG meeting 23rd April 2007 Brussels Dr. Marianne Klingbeil Head of Unit DG ENV C3 – Air and Transport European Commission European Commission

2. Background Ship emissions of CO 2 are 2-3% of world total CO 2 emissions and are increasing in line with international trade (3-4% per year) GHG emissions from ships = 97% CO 2 (1.5% N 2 O, 1% refrigerant gasses and 0.5% CH 4 ) 40% of the global fleet is controlled by EU interests, 90% of EU international trade is by sea. Up to 50% savings are possible – with technical and operational improvements Studies indicate savings are very cost effective

3. Action required EU target for reducing CO 2 emissions (“at least 20%”) European Council Conclusions – March 2007 call for action on international maritime emissions. International maritime transport not included in Kyoto targets – but Annex 1 parties are obliged to ‘pursue’ reductions. Industry needs certainty – long term investments, ships last 30 years – need for stable framework Positive environmental image of shipping under threat – must be maintained

4. Slow progress IMO first took up the issue in 1997 but progress is slow (political opposition). Post 2012 negotiations now getting under way

5. Policy options - Ineffective options 1) Voluntary measures 2) Allocation of international Maritime emissions to MS 3) Reporting obligation Action on refrigerant gasses – necessary but not sufficient

6. EU Policy option 1 – Shipping ETS Include Shipping in EU ETS – – similar to aviation BUT different Issues – – Changing – destinations, owners, operators.. – – Avoidance – – Scale – – Data – – Diversity

7. EU Policy option 2 – Harbour dues Variable harbour dues based on GHG emissions Issues – – Does not guarantee reductions – – Limit values difficult to agree – – Route related circumstances – – Port competition – – Complex

8. EU Policy option 3 – CO Index Limits EU Policy option 3 – CO ² Index Limits Binding CO ² index limits for ships visiting EU ports Issues – – Limit values difficult to agree – – Diversity of vessels – – Variation in operating environments and buisness models – – ‘Occasional visitor’ problem

9. Questions: How could the IMO work be accelerated? Do you support unilateral EU action? Which policy strategy is favoured?

10. What next? Review recent CE Delft study Promote discussion in national capitals IMO MEPC meeting in July 2007 Consider national positions for ‘post’ 2012 negotiations Keep us informed

11. Thank you for your attention Dr. Marianne Klingbeil Head of Unit – Air and Transport DG Environment European Commission BU-9 6/204 Tel: +32 2 296 0493 marianne.klingbeil@ec.europa.eu