Shipowners’ body explains position on greenhouse gas market based measures
In a statement expanding on its recent announcement that it prefers a levy to a global emissions trading system, the International Chamber of Shipping (ICS) says that is strongly opposed to the application of any regional GHG scheme to international shipping.
It says it believes that CO2 emissions from international shipping cannot be reduced effectively and meaningfully through the incorporation of shipping into any regional financial instrument. It singles out the EU emission trading system saying: “In particular, the incorporation of international shipping in the EU ETS is most definitely not suitable for the Shipping Industry and is to be strongly opposed.”
ICS says that the future efficiency of the world’s fleet can best be ensured, in the first instance, by the adoption of legislation at the UN International Maritime Organization (IMO) on technical and operational measures for the reduction of CO2 emissions from international shipping.
This legislation should, ICS says, include: an Energy Efficiency Design Index (EEDI) for application to new specified ship types; a review clause such that the application of the EEDI to future new ships can be tested against efficiency expectations and for any unforeseen impact prior to each implementation of the EEDI reduction stages; a requirement for each ship to have a ship specific Ship Energy Efficiency Management Plan (SEEMP).
ICS notes that significant work is still required to determine the appropriate EEDI calculation for a number of specialist ship types, such as Ro-Ro’s, Gas Carriers etc but strongly IMO member states to adopt the EEDI legislation at the IMO’s Marine Environment Protection Committee (MEPC 62) meeting next month.
The shipowners’ body says that it is confident that international shipping will reduce its CO2 emissions, per tonne-kilometre, through technical and operational measures that will deliver improving ship efficiency, by more than 20% by 2020 (2007 baseline)
IMO says that it will support any market-based measure agreed by IMO members states if they comply with the nine principles on MBMs adopted at IMO. These are that the measure will:
effectively reduce CO2 emissions, be binding and include all flag states, be cost effective,
not distort competition, be based on sustainable development without restricting trade or growth,
be goal based and not prescribe particular methods, stimulate technical research and development in the entire maritime sector, take into account new technology, and be practical, transparent, free of fraud and easy to administer.
In addition ICS would want revenue generated by any measure adopted primarily be used for efficiency improvement within the shipping industry and to assist in mitigation measures in developing countries.
ICS also argues that only one economic measure should be applied to shipping and that this should be administered under IMO. It says in its statement: “It is a fundamental principle for ICS that any GHG financial instrument that is determined necessary for international shipping should be resolved in, and applied through, IMO.”
As announced following the ICS AGM in Hamburg, it says that the global shipping industry has a preference for a Market-Based Mechanism that is levy/compensation fund based. ICS believes that a levy/compensation fund based system is best suited for the Shipping Industry and shipping companies because such a system will ensure that: a level playing field is maintained, serious market distortion is avoided, management of the system will be easier; and the desired transparency will be provided.
As announced following the ICS AGM in Hamburg, it says that the global shipping industry has a preference for a Market-Based Mechanism that is levy/compensation fund based. ICS believes that a levy/compensation fund based system is best suited for the Shipping Industry and shipping companies because such a system will ensure that: a level playing field is maintained, serious market distortion is avoided, management of the system will be easier; and the desired transparency will be provided.
Source: World Bunkering