Hellenic Mediterranen Panel Athens 22 September 2010 Peter M. Swift.
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Transcript of Hellenic Mediterranen Panel Athens 22 September 2010 Peter M. Swift.
INTERTANKO’s Council Agenda12-13 October, Singapore
Policy Issues
Report Items
Administration Matters
(Including Financial Reports)
Other Business
Policy Issues
• GHG emission reductions
• Piracy
• Bunkers and quality of bunkers delivered to ships
• Mercury in crude
Report Items
• Iranian sanctions• Venezuelan detentions• Criminalisation and unjust treatment• The Year of the Seafarer• “Tripartite” meeting• Malacca Cooperative Forum• Consequences of Macondo spill• Benchmarking study• EU and US Reports• Committees (ISTEC and Vetting overviews)• Panels
Administrative Matters
• Membership applications• Financial Report
- including year end estimate
- budget• Work Plan 2011• One Voice initiative
PLUS • Any other business
Piracy / Armed Robbery
• Malacca Straits / South China sea
• Nigeria / Gulf of Guinea
• South America
• Somalia – Gulf of Aden /
W Indian Ocean
Gulf of Aden/Somali CoastINTERTANKO new and continuing activities
Activities include:
UN• Participant at UN Contact Group (plenary) and working groups on Piracy,
communications with Secretary General• Production of Best Management Practices – V3
IMO• Revision of MSC Guidance Circulars• Preparing paper for MSC 88 on need for more robust action and prosecution of
those captured
EU and other governments• Presentations to EU Commission and MEPs• Frequent contact with EU and other member states
MILITARY• Providing MNLO Secondee to MSCHOA• Regular contact with EUNAVFOR, UKMTO, CTF, NATO • Participation in Naval Shared Awareness and De-Confliction (SHADE) Meetings
Gulf of Aden/Somali CoastINTERTANKO new and continuing activities
Activities include: (continued)
OTHER• Contributed to production of Anti--Piracy Charts• Developed Merchant Shipping Communication Plan• Extensive media contacts• Developing guide with INTERPOL on evidence gathering and
witness statements
INFORMATION to MEMBERS• Developed Piracy Model Clauses• Providing regular Security Bulletins to Members• Providing Routing Guidance• Participating at Industry Seminars• Frequent contacts with national governments
United Nations: Contact Group on Piracy of the Coast of Somalia (CGPCS)
Contact Group steers the overall programme • WG 1 : measures to improve the coordination of, and
information sharing between, the various naval forces present in the region and their interfacing with civilian shipping
• WG 2 : programmes to facilitate the prosecution of those caught and suspected of piracy
• WG 3: facilitates development of industry “Best Management Practices” to counter piracy and their application within the international shipping community
• WG 4 : communications and outreach strategies for use within
Somalia and to the wider international community as part of capacity building programmes - this latter to be in conjunction with other UN programmes already on the ground within the region
Council Discussion/Policy Review Piracy – INTERTANKO positions
Eliminating piracy is a SHARED RESPONSIBILITY between the maritime industry and governments,
BUT
Establishment of LAW AND ORDER on the high seas is the responsibility of governments
Our first concern is for the safety and welfare of our seafarers, both at sea and in port,
while also concerned for the security of our ships and their cargoes !
Council Discussion/Policy Review –General overview
• Both industry and governments recognize that eliminating piracy is a shared responsibility and each is doing their part
• Significant progress has been made by both
• BUT, more must be done to eradicate piracy and we must work together to do it
• Maintaining assets and resources will be a challenge for both governments and industry associations over the medium/longer term
• Adherence to Best Management Practices is still incomplete
• Any escalation of activity/levels of violence will create new challenges
• The “solution” to the Somali problem stills seems as distant as ever
• There is a risk that the “Somali” model is copied elsewhere
Council Discussion/Policy Review
A more robust approach / strategy ?
• Opposition remains to arming crews and carrying armed private guards ??
• Support for Vessel Protection Detachments ?? (Issues with administrations and logistics)
• Effect of US Executive Order on the payment of ransoms ?? (Money laundering issues)
• Further promotion of BMPs Version 3• Use of citadels / secure centres (linked to military
interventions)
• Encouragement to governments to intercept, capture and prosecute ALL those attacking merchant ships (legal, jurisdiction, evidence and WILL issues)
• Advocating a review of military strategies
Council Discussion/Policy Review
Review of military strategies (in conjunction with commercial shipping)
Possible new approaches:• partial blockade of Somali (and other) coast • extended IRTC to avoid “ballooning" at ends• new transit corridors for key routes – Somali
basin, Omani coast, other• declaration of “no go” zones• greater involvement of littoral states
Deployment of “fit for purpose” military assets:• naval ship platforms, helicopter interceptions• MPAs (with new bases in Oman and India)
Reducing Greenhouse Gas Emissions from Shipping
• Key Dates
• UNFCCC and IMO Programmes
• Market Based Mechanisms
• Industry Initiatives
UNFCCC = United Nations Framework Convention on Climate Change
Reducing Greenhouse Gas Emissions from Shipping
Selected Key Dates
12/2009 UNFCCC COP15 Meeting, Copenhagen
3/2010 IMO MEPC 602010 IMO MBM-Expert Group
IMO MEPC Intersessional (EEDI)2010 UNFCCC Interim meetings
UN High Level Advisory Group on Climate Change Financing
------------
9/2010 IMO MEPC 6110/2010 INTERTANKO Council Meeting11/2010 UNFCCC COP16 Meeting, Cancun2010-2011 EU Council/Commission meetings----------5/2011 INTERTANKO Council Meeting7/2011 IMO MEPC 6212/2011 EU Deadline for IMO/International Agreement
2012 Kyoto Protocol expires
UNFCCC - COP15
What was the outcome ?
• NO targets• NO resolution of Kyoto/IMO Treaty conflict
• NO direct reference to international shipping in Copenhagen Accord
BUT in subsequent discussions:
Shipping is “expected” to make its “contribution” to Climate Change measures with $$$$ (UN Advisory Group)
International Aviation and Shipping should be regulated via UNFCCC and have targets as per other industries
(EU Parliament)
IMO Programme
To develop:
EEDI for new ships (Mandatory)
SEEMP (Mandatory) & EEOI (Voluntary) for all ships
and, if possible/needed:
Market Based Measures for shipping
IMO – UNFCCC Conflicting principles remains a major issue
IMO Principle:
“No More Favourable Treatment”
Versus
Kyoto Protocol principle:
“Common But Differentiated Responsibility”
IMO Intersessional Working Group
To improve the text for mandatory requirements of EEDI and SEEMP in terms of:
• coverage of ship types and ship sizes for the EEDI;• establishment of EEDI baseline(s); • frequency of reducing the mandatory value of EEDI
(reduction in 3 phases); • reduction rate from the baseline for the phases for the
EEDI;
To develop various guidelines:• on the method of calculation of EEDI;• for the calculation of baselines for attained EEDI;• to support the regulatory framework for verification of the
EEDI
IMO MBM – Expert Group
Group of MBM schemes which would require all ships to pay a contribution:
1. International Fund for Greenhouse Gas emissions from ships – suggested by Denmark and supported in principle by Cyprus, Marshall Islands and Nigeria
2. Global Emission Trading System for International Shipping, as proposed by Norway, France and Germany with general support from the UK
Group of MBM schemes which provide rewards to more energy efficient ships:
3. Leveraged Incentive Scheme based on the International GHG Fund - proposed by Japan.
4. Ship Efficiency and Credit Trading scheme (SECT) based on Efficiency Standards for All Ships - proposed by the USA.
5. Vessel Efficiency System (VES) - proposed by the World Shipping Council.
Plus others from Jamaica, Bahamas and IUCN
Some are in sector, i.e. shipping only; others are out of sector
Why are MBMs Proposed ?
• Shipping is expected to become more energy efficient
• IMO will adopt technical measures for new ships (EEDI)
• Existing ships will also improve their energy efficiency
BUT
• CO2 emission reductions achieved through technical and operational measures may not be sufficient and their effect will not be seen in the short term
• The increasing demand for transportation at sea could well lead to a net increase in CO2 emissions from ships even though each ship may become more efficient
Application of ETS
Offsetting (in sector & out sector)Offsetting (in sector & out sector)
Actual emissionsActual emissions
BAUBAU
Target line
EEDI
Funds to UNFCCCFunds to UNFCCC
General comments on MBMs
• Proposals at different level of maturity
• All proposals need further development
• All lack policy details with regard to– enforcement– administration– carbon leakage– fraud– vessels registered with non-party flags– harmonisation
Reducing Greenhouse Gas Emissions from Shipping
Industry initiatives:
• Work on EEDI (including Tripartite workshops)• Developing and assessing GHG reduction measures for
new and existing ships (Tripartite)• Developing Marginal Abatement Cost Curves
- what is achievable ?• Developing operational measures, such as “Virtual Arrival”• Developing industry SEEMPs, such as INTERTANKO’s
TEEMP – Tanker Energy Efficiency Management Plan
plus• Active participation in MBM Expert Group
“Virtual Arrival “OCIMF /INTERTANKO project
Virtual Arrival is all about managing time and managing speed.
It’s not about blanket speed reduction to match current market conditions.
Virtual arrival is about identifying delays at discharging ports, then managing the vessel’s arrival time at that port/terminal through well managed passage speed, resulting in reduced emissions but not reducing capacity.
Virtual Arrival - Summary
• Cooperation between Charterer (Terminal Operator) and Owner
• Speed is “optimised” when ship’s estimated arrival is before the terminal is ready
• Owners and Charterers agree a speed adjustment
• May use an independent 3rd party to calculate / audit adjustment
• Owners retain “demurrage”, while fuel savings and any carbon credits are split between parties
Next Steps:• OCIMF-INTERTANKO running joint workshops• Charter Parties being reviewed
(INTERTANKO/BIMCO/BP/Chevron) • Individual oil majors and owners “trialling” system• Bulk carrier sector examining feasibility
Council Discussion/Policy Review GHG reductions – INTERTANKO positions
Support in principle for:• Mandatory EEDI – subject to acceptable formula• Targeted reductions in EEDI over time – subject to realistic steps (percentages and time)
• Mandatory SEEMP – subject to applicability of final version and EEOI remaining “voluntary”
Regulation/legislation of GHG emission reductions to be coordinated through the IMO and to be flag neutral; i.e. applicable to ALL ships
Council Discussion/Policy Review
Market Based Instruments:
• As a MINIMUM must meet IMO and INTERTANKO principles
Do we need an MBM for Shipping ?
• Cost of fuel is already sufficient economic incentive (frequently 60-80% of total operating costs)
• Without agreed “targets” for GHG reductions from shipping, how is any shortfall quantified and how is the “purpose” of an MBM defined?
• Industry to remain passive or be more pro-active ?
IMO Principles
1. Effective in contributing to the reduction of total global GHG emissions
2. Binding & equally applicable to all flag States3. Cost-effective4. Able to limit or effectively minimize competitive
distortion5. Based on sustainable environmental development
without penalizing global trade and growth6. Based on a goal-based approach and not prescribe
specific methods7. Supportive of promoting and facilitating technical
innovation and R&D in the entire shipping sector8. Accommodating to leading technologies in the field of
energy efficiency 9. Practical, transparent, fraud free and easy to
administer
INTERTANKOFuture Dates
ExComand
Joint OCIMF/ITOPF/INTERTANKO SeminarVancouver
17-18 November 2010
Council, AGM and Tanker Seminar ATHENS
8-10 May 2011
CouncilLondon
October 2011
Thank you
For more information, please visit:www.intertanko.com www.shippingfacts.com
www.maritimefoundation.com
London, Oslo. Washington, Singapore and Brussels
INTERTANKO’s Strategic Objectives
To develop and promote best practices in all sectors of the tanker industry, with owners and operators setting the example.
To be a positive and proactive influence with key stakeholders, developing policies and positions, harmonising a united industry voice, and engaging with policy and decision makers.
To profile and promote the tanker industry, communicating its role, strategic importance and social value.
To provide key services to Members, with customised advice, assistance and access to information, and enabling contact and communication between Members and with other stakeholders.
Management Committee
Council
Executive Committee
Annual General Meeting
Q-QuestSub-Committee
Chemical Tanker Sub-Committee Americas
Bunker Sub-Committee
Chemical Tanker Committee (CTC)
Associate Members Committee (AMC)
Insurance & Legal Committee
Documentary Committee
Environmental Committee
Human Element in Shipping Committee
(HEiSC)
Short Sea Tanker Group
IT Committee
INTERTANKO Offshore Tanker Committee
(IOTC)
Safety, Technical & Environmental
Committee (ISTEC)
Worldscale Committee
Vetting Committee
ASIAN REGIONAL PANEL
HELLENIC MEDITTERANEAN PANEL
LATIN AMERICAN PANEL
NORTH AMERICAN PANEL
NORTHERN EUROPEAN PANEL
INTERTANKOORGANISATION
CPR Advisory Group
Kyoto Protocol
• Established under UN Framework Convention on Climate Change (UNFCCC) and adopted in 1997
• Ratified by 181 countries – not the USA• Categorises Annex 1 (Developed) Countries and Non-
Annex 1 (Developing) Countries • Annex 1 Countries are committed to make GHG reductions
with set targets, but also flexible mechanisms • Runs through to 2012, with Conference of Parties (COP15)
to meet in Copenhagen in Dec 2009 to develop successor• Kyoto recognises “common but differentiated
responsibilities”, i.e. developed countries produce more GHGs and should be “responsible” for reductions
• Kyoto looks to IMO to address Shipping and ICAO to address Aviation, and as such these emissions are currently excluded from Kyoto targets
MBM Proposals
• Out of shipping sector mechanisms– International GHG Fund (Denmark et al.)– Emission Trading Scheme (Norway et al.)– Rebate Mechanisms (IUCN)
• In shipping sector mechanisms– Leverage Incentive Scheme (Japan)– Ship efficiency & Credit Trading (USA)– Vessel Efficiency System (WSC)– Port State Levy (Jamaica)
– Penalty on Trade and Development (Bahamas)
Ship Efficiency and Credit
US EEDI (EIr)US EEDI (EIr)
IMO EEDIIMO EEDI
New ship IMO EEDI (US EIa)
Efficiency Credit = (EIr – EIa) x Activity
Existing hip (EIa)
Efficient Credit >0 = Sells CreditsEfficient Credit < 0 = Buys Credits
Leverage Incentive Scheme
Req. EEDI 1
Req. EEDI 2
Req. EEDI 3
EEDIAttained
0%0%
50%50%
100%100%
50%50%
Ship 2
Ship 1
Ship 3
EEOI
benchmark
Actual
PATERN 1
PATERN 2
Initial EEOI
Reduced EEOI
NEW BUILDINGNEW BUILDING
EXISTING SHIPSEXISTING SHIPS
Possible Abatement Measures
• Gas fuelled engines• Electronic engine control• Waste heat recovery• Air cavity lubrication• Contra-rotating propeller• Fuels cells as auxiliary
engines• Frequency converters• Exhaust gas boilers on
auxiliary engines• Energy efficient light
systems• Wing generator• Wind power – kite• Wind power – fixed sails
or wings• Solar panels
• Solar panels• Trim/draft optimising• Weather routing• Voyage execution• Steam plant operational
improvements• Speed reduction due to port
efficiency• Propeller condition• Speed reduction due to fleet
increase• Hull condition• Propulsion efficiency devices• Cold ironing• Engine monitoring• Reduced auxiliary power
usage
Virtual Arrival
by taking advantage of known inefficiencies in the supply chain andreducing speed when the terminal is not ready to discharge the cargo In addition to directly reduced emissions, other benefits are:• Reduced congestion and emissions in the port area • Improved safety• Potentially increased use of weather routing Important pre-conditions:• The safety of the vessel remains paramount• The authority of the vessel’s Master remains unchanged• The basic terms of trade remain the same
What is needed to do to make Virtual Arrival work?
1. A known delay at the discharge port2. A mutual agreement between two (or more) parties to
adapt the ship’s arrival time to take advantage of the delay3. An agreed Charter Party clause that establishes the terms
for reducing the speed to adapt to the new arrival time4. An agreement on how to calculate and report the Virtual
Arrival and the performance of the vessel5. This may involve a Weather Analysis Provider (WAP)6. OCIMF/INTERTANKO and class are producing transparent
standards for verification of WAPs
But mainly it’s a win–win situation for all,based on trust and transparency