Emissions Reduction in the Shipping Industry. Jean-Florent Helfre, Client Relations Associate

Transcription

1 Emissions Reduction in the Shipping Industry Jean-Florent Helfre, Client Relations Associate

2 Presenters Amanda McCluskey Senior Investment Manager and Co-Head of Sustainable Funds, First State Stewart Jean-Florent Helfre Client Relations Associate, Sustainalytics Simon K W Ng Head of Transport and Sustainability Research, Civic Exchange, Hong Kong Moderator: Wilco van Heteren Director, Research Products, Sustainalytics 2

3 Introduction Global and Regional Shipping Emissions Challenges Solutions 3

4 Context 3% of the world s total GHG emissions 5-8% of the world s total SOx emissions 15% of the world s NOx emissions The industry s share is increasing (50% increase since 1997) Social impacts (e.g. cardiovascular and respiratory diseases) & Environmental impacts (e.g. acid rains, climate change) United Nations-backed agency IMO in charge of establishing international conventions on shipping emissions. -> Key convention: MARPOL Annex VI 4

5 IMO Regulations Timeline 5

6 IMO Regulations GHG emissions Since January 1, 2013 the following applies to all ships of 400 gross tonnage and above: EEDI: Energy Efficiency Design Index Implications for new ships (design); Level tightened every 5 year SEEMP: Ship Energy Efficiency Management Plan Implications for existing ships; Requires a management system (targets, monitoring, etc.) 6

7 IMO Regulations SOx emissions From 2015, fuel used in ECAs must have a maximum sulphur content of 0.1% (versus 1% now) From 2020, fuel used outside ECAs must have a 0.5% sulphur content (versus 3.5% now) 7

8 Impacts on shipping firms GHG and SOx: most material sustainability issues for shipping together with oil spills and safety Fuel costs currently represent around 50% of all costs Fuel costs might increase significantly in the period Level of preparedness is key: Some shipping companies are better prepared to comply with current and upcoming regulations Most energy-efficient fleet: Maersk, Kuehne & Nagel, Nippon Yusen KK 8

9 SOx Disclosure * Disclosed by the company 9

10 Solutions for ship owners Newly built ships can combine different solutions (e.g. an exhaust gas by-pass system, an electronically controlled fuel efficient engine, kites and capacity for low-sulphur fuel) Scrubbers: 95-99% SOx reduction LNG: no SOx emissions Low-sulphur fuel is a good shortterm solution; LNG being the most preferred solution on the longer term 10

11 Solution providers * In Euros, estimates for the year

12 Issues for engagement Ship owners Is there a Board committee in place that oversees SOx and NOx issues? Does the ship owner publish data on GHG, SOx, NOx, and PM per region and per business unit? Has the ship owner implemented a Ship Energy Efficiency Management Plan (SEEMP)? Have EEOI-based targets been set? Does the ship owner report data on the percentage of total fuel that is low-sulphur fuel? Has the ship owner considered all three options (low-sulphur fuel, scrubbers and LNG) to comply with SOx regulations? 12

13 Thank you! Jean-Florent Helfre Client Relations Associate, Sustainalytics Amsterdam Bogota Boston Brussels Bucharest Copenhagen Frankfurt London Paris San Francisco Singapore Timisoara Toronto

14 Green Shipping in Hong Kong and Asia Simon K W NG Head of Transport and Sustainability Research Webinar Emissions Reduction in the Shipping Industry: Regulation, Exposure and Solution 27 June 2013

15 The Setting

16 The Inventory

17 The Science Spatial distribution of ship emissions 2007

18 Voluntary Actions

19 Government Incentive

20 Regulation

21 Regional Efforts Regulations Way behind North America and Europe At-berth fuel switching regulation for OGVs (Hong Kong) Voluntary actions Fair Winds Charter (Hong Kong) Incentive programs Green Port Program (Singapore) Incentive Scheme for OGVs to switch fuel (Hong Kong) Research In different parts of Asia

22 Thank you! Simon K W NG Head of Transport and Sustainability Research kwsng@civic-exchange.org

23 Questions?