Over two thirds (68%) of global marine industry executives believe that a lack of uniform international environmental regulations will impede the adoption of green technologies in shipping, according to a new report from global law firm Clyde & Co and the Institute of Marine Engineering, Science & Technology (IMarEST), which surveyed 220 global marine industry executives.
Clyde & Co explains that some international maritime conventions, which target environmental protection, do exist. One ongoing example is the global sulphur emissions limit, which forces ship operators to use fuel on board with a sulphur content of no more than 3.5% m/m and this limit is set to be reduced in 2020 to 0.5% m/m. Another is the BWM Convention, which came into force in September 2017 and requires all ships to manage their ballast water and sediments to a certain standard, according to a ship-specific BWM plan.
While some international conventions for the protection of the marine environment are in place, there is a distinct lack of global regulation surrounding other key environmental issues, such as carbon emissions, Clyde & Co stresses. A fundamental concern for the industry is that the absence of a convention, or even a non-preemptive existing legal framework, leaves the field open to additional and potentially inconsistent regulations by different jurisdictions.
For instance, in late 2017, the EU said it would include shipping in its emissions trading system if IMO would not deliver effective global measures to reduce shipping emissions by 2023.
Another example is California that had its own BWM requirements before the US adopted the same on a federal level. The US opted out of the IMO convention because of differences in US law and the less stringent requirements of the convention. For example, IMO permits technology that renders organisms sterile, while US law requires such organisms to be dead. This demonstrates the disparity in regional and global environmental legislation.
“It’s encouraging to see the IMO is already considering the issue of greenhouse gas emissions but quick and steady progress needs to be made before regional jurisdictions take action, so that the industry to can have confidence to invest in new green-tech,” comments Conte Cicala, partner at Clyde & Co in San Francisco.
According to the research, 64% think that green technologies will not place an unacceptable cost burden on ship operators.
David Loosley, Chief Executive, IMarEST, says: “Formulating and introducing effective regulatory frameworks aimed at protecting the environment is always going to pose challenges for inherently global industries such as shipping. An additional layer of regional or national directives complicates matters further, as vessel operators must ensure compliance with multiple rulesets, while manufacturers must develop technological solutions that satisfy multiple specifications. This reality is reflected in the fact that IMarEST is increasingly involved in helping its members navigate this regulatory web.”
The report shows that key barriers to and issues around the adoption of new energy management solutions include:
- Cost – 63% of global marine industry executives think that costs will impede the adoption of new energy management solutions
- Fuel availability – 73% believe that fuel availability will strongly drive the market for energy management solutions
- Crew skills – 64% worry that energy management solutions will place additional demands on crews
Cicala says: “Where fuel can account for as much as half of the operating costs for the shipping industry, it’s no surprise that the marine industry is keeping an eye on both the availability of fuel and cost of energy management solutions.”
“As with any new technology, energy management solutions could impact crews who may need to acquire new competencies as well as taking on additional maintenance workloads to keep the technology running. Organisations investing in such technology will need to consider the most efficient way to train their staff up before the technology is rolled out.”
Explore more by reading the full report here.