1. Reporting Greenhouse Gas Emissions from International Shipping Data needs and other challenges in GHG emission control regimes

2. Structure Introduction. Introduction. How ocean transport maybe integrated in the post 2012 greenhouse gas regime. How ocean transport maybe integrated in the post 2012 greenhouse gas regime. Data needs under select schemes. Data needs under select schemes. Data availability in the world of shipping. Data availability in the world of shipping. The non-data challenges under each scheme The non-data challenges under each scheme Conclusion. Conclusion. 2

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4. National and Sectoral Allocation are the Two Principle Pathways The determination of national greenhouse gas shares from international ocean shipping The determination of national greenhouse gas shares from international ocean shipping Finding acceptable methods of national allocation has proven difficult Finding acceptable methods of national allocation has proven difficult Allocation based on import freight a potential option Allocation based on import freight a potential option The sectoral allocation option The sectoral allocation option For example distribution based on ship activity For example distribution based on ship activity The pegging of a performance-based requirement to the freight itself The pegging of a performance-based requirement to the freight itself 4

5. One Example is the National Allocation based on Ship Route Example Ship Activity: Example Ship Activity: Emissions are allocated to the countries where the ship originates or lands. Emissions are allocated to the countries where the ship originates or lands. Ship-based emissions monitoring is implemented, for example in form of fuel consumption monitoring, the greenhouse gas index or similar reporting schemes. Ship-based emissions monitoring is implemented, for example in form of fuel consumption monitoring, the greenhouse gas index or similar reporting schemes. The greenhouse gas burden per distance sailed can then be allocated to the national inventories of the states of origin and destination of the ship. The greenhouse gas burden per distance sailed can then be allocated to the national inventories of the states of origin and destination of the ship. 5

6. More Feasible are Ship-based or Freight-based Sectoral Options Example: Sectoral Responsibility based on Ship Activity as a Cap and Trade System Example: Sectoral Responsibility based on Ship Activity as a Cap and Trade System Establish a base-year global CO 2 balance from shipping Establish a base-year global CO 2 balance from shipping Distribute CO 2 certificates for trading year [kg CO 2 ] Distribute CO 2 certificates for trading year [kg CO 2 ] Every ship operator acquires certificates to cover their activity in trading year Every ship operator acquires certificates to cover their activity in trading year Monitoring by Port States upon landing of ships Monitoring by Port States upon landing of ships 6

7. Fuel consumption data and port of call lists are readily available Commercial vessels monitor their fuel consumption Commercial vessels monitor their fuel consumption Through mechanical or electronic flow meters Through mechanical or electronic flow meters By regularly monitoring calibration tanks By regularly monitoring calibration tanks Bunker delivery notes may serve as verification Bunker delivery notes may serve as verification National security agencies demand port of call lists and other ship information upon vessel arrival National security agencies demand port of call lists and other ship information upon vessel arrival US ship arrival US ship arrival 7

8. The Challenges of National Allocation are of Political, not Technical Nature. Examples ship route, ownership, flag etc: Examples ship route, ownership, flag etc: Global fuel consumption – through bunker delivery notes or a reporting scheme Global fuel consumption – through bunker delivery notes or a reporting scheme The boundary setting and allocation to national inventories nearly impossible The boundary setting and allocation to national inventories nearly impossible Residency of ship owner is known, but may shift to non-participating states Residency of ship owner is known, but may shift to non-participating states Port of calls could be asked for, but who takes what share of the total emissions? Port of calls could be asked for, but who takes what share of the total emissions? 8

9. Ship Data are Readily Available Vessel data may be retrieved from various sources: Vessel data may be retrieved from various sources: Ship log-books (fuel consumption, port of calls, distances and cargo etc.) Ship log-books (fuel consumption, port of calls, distances and cargo etc.) Pre-arrival documents Pre-arrival documents Automated information systems (AIS) spatial data could be used – in some regions Automated information systems (AIS) spatial data could be used – in some regions The Greenhouse Gas Index currently under testing is an excellent method to bring all data together The Greenhouse Gas Index currently under testing is an excellent method to bring all data together 9

10. The GHG Index is a Good Tool for Integrating Shipping post 2012 REAL fuel consumption, REAL distances sailed and REAL cargo loaded: Characterizes EACH ship (time average) REAL fuel consumption, REAL distances sailed and REAL cargo loaded: Characterizes EACH ship (time average) Transport index * activity = emissions CO 2 [t/km] * km/year = year emissions CO 2 [t/t cargo -km] * km/y * t cargo /y = year emissions UNCLOS Port State Control to monitor and report ship performance to UNFCCC system UNCLOS Port State Control to monitor and report ship performance to UNFCCC system 10

11. The GHG Index is a Good Tool for Integrating Shipping post 2012 REAL fuel consumption, REAL distances sailed and REAL cargo loaded: Characterizes EACH ship (time average) REAL fuel consumption, REAL distances sailed and REAL cargo loaded: Characterizes EACH ship (time average) Ship Emissions Calculator2.xls Ship Emissions Calculator2.xls Transport index * activity = emissions CO 2 [t/km] * km/voyage = voyage emissions CO 2 [t/t cargo -km] * km/v * t cargo /v = voyage emission UNCLOS Port State Control to monitor and report ship performance to UNFCCC system UNCLOS Port State Control to monitor and report ship performance to UNFCCC system 11

12. Details of the GHG Index Proofs its Suitability Goal of the GHG Index is to assist the IMO in achieving the "limitation or reduction of greenhouse gas emissions from shipping". Basis of the proposal is each individual ship and the fuel consumption per transport work. "For existing ships, the CO2 index should represent an average value of the energy efficiency of the ship operation over a period of one-year (six month for newly build ships). Goal of the GHG Index is to assist the IMO in achieving the "limitation or reduction of greenhouse gas emissions from shipping". Basis of the proposal is each individual ship and the fuel consumption per transport work. "For existing ships, the CO2 index should represent an average value of the energy efficiency of the ship operation over a period of one-year (six month for newly build ships). The GHG Index in its draft guideline therefore provides a ship-based index of performance that is "intended (…) as guidance on monitoring of the efficiency of ship operations". The GHG Index could deliver the following data : The GHG Index in its draft guideline therefore provides a ship-based index of performance that is "intended (…) as guidance on monitoring of the efficiency of ship operations". The GHG Index could deliver the following data : Amount of fuel consumed over 12 or 6 months. Amount of fuel consumed over 12 or 6 months. Distance sailed for the last months but also for the last voyages. Distance sailed for the last months but also for the last voyages. Cargo loaded in tons or other cargo units for the past months but also for the last voyages. Cargo loaded in tons or other cargo units for the past months but also for the last voyages. Transport efficiency in units of [kg CO2/t-mile] or other cargo unit normalizations. Transport efficiency in units of [kg CO2/t-mile] or other cargo unit normalizations. (IMO 2005, MEPC 53/WP 11, Annex 1) 12

13. Freeing Inter-Developing Country Traffic would Capture ~80% of the Global Ship Emissions Unloaded freight in 2004 (UNCTAD 2005) and calculated CO2 burden sharing according to the example above DMEC = Developed Market Economy Countries; DC = Developing Countries

14. Data Needs National Allocation National Allocation Residency or flag Residency or flag Origin & destination Origin & destination Sectoral Allocation Sectoral Allocation Based on ship activity Based on ship activity Freight origin & dest. Freight origin & dest. Based on target efficiency values Based on target efficiency values Bunker Fuel Consumption Information on ships Port of calls Consumption & Efficiency Ship fuel consumption and distances sailed Customs data Consumption, distances and cargo-based efficiency 14

15. Customs formalities can provide all data, but challenges exist Customs import/export data delivers all necessary freight data: Customs import/export data delivers all necessary freight data: Owner and Recipient Owner and Recipient Countries of origin and destination Countries of origin and destination Raw and net weight of goods etc. Raw and net weight of goods etc. Trade statistics do not measure the physical flow of goods Trade statistics do not measure the physical flow of goods Trade statistics measure the value rather than the weight of goods Trade statistics measure the value rather than the weight of goods However, freight transport emissions more closely correlate with weight than with value However, freight transport emissions more closely correlate with weight than with value 15

16. Source: Jean-Paul Rodrique; Comtois, C; Slack, B (2006) The Geography of Transportation Systems. Online access: http://people.hofstra.edu/geotrans/index.html 16

17. Ocean Shipping can be Successfully Included if International Institutions use their Distinct Characters and Strengths The IMO is the technical organization to establish onboard reporting methodologies for all ships The IMO is the technical organization to establish onboard reporting methodologies for all ships The IMO can insure that ship operators have only one single format to follow, for example the GHG Index. The IMO can insure that ship operators have only one single format to follow, for example the GHG Index. The UNFCCC as an organization of nations or another international entity are better suited and more flexible in setting emission limits. The UNFCCC as an organization of nations or another international entity are better suited and more flexible in setting emission limits. UNCLOS gives States the necessary legal authority to set such limits and reporting requirements. UNCLOS gives States the necessary legal authority to set such limits and reporting requirements. 17

18. Conclusion From an industry perspective, the inclusion of ocean transport into Kyoto and its related data requirements does not need to raise industry resistance, if all ships were treated equally. From an industry perspective, the inclusion of ocean transport into Kyoto and its related data requirements does not need to raise industry resistance, if all ships were treated equally. Cost for compliance is marginal and secondary in a sectoral approach based in ship activity. Cost for compliance is marginal and secondary in a sectoral approach based in ship activity. Conflicts arise more likely on a political level. Conflicts arise more likely on a political level. It is thus important to draft a reasonable approach and sort out the institutional and political responsibilities. It is thus important to draft a reasonable approach and sort out the institutional and political responsibilities. 18

19. Thank you for your time International Environmental Consultant Oakland, US – Kingston, CA – Berlin, DE steseum@comcast.net

20. Source: Le Monde Diplomatique; Atlas der Globalisierung 2003 20