COP 18 IMO SIDE EVENT

Simon Bennett, Director External Relations International Chamber of Shipping (ICS)

Doha

27 November 2012

90% of World Trade

International Chamber of Shipping

Ü  Principal international trade association for shipowners

Ü  80% of world fleet Ü  Members are national

shipowners’ associations Ü  Represents shipowners at IMO

Global Rules for a Global Industry

IMO in session in London

Need to Reconcile CBDR with IMO Global Rules

Ü  Only 35% of fleet is registered with ‘Annex I’ nations

Ü  Danger of ‘carbon leakage’ Ü  Ships flexible about flag of choice

Improving CO2 Efficiency

Shipping is Servant of World Trade

Growth  in  world  seaborne  trade  Source:  Fearnleys

15000

20000

25000

30000

35000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010est.

Billion

 tonn

e  mile

s

IMO Agreement Addresses CBDR

Ü  Includes regulation on technology transfer and technical co-operation with developing nations

Ü  Flag State waiver on immediate application of EEDI (but most shipowners will not use)

Market Based Measures (MBMs)

MBMs are Controversial

Ü  High fuel cost already provides efficiency incentive

Ü  Danger of modal shift to less CO2 efficient modes of transport

Shipping is not a Cash Cow

But Shipping Must Play its Part in Development of MBMs

MBM Proposals

1.  Using EEDI to reward or penalise ships

2.  Emissions Trading Schemes 3.  Compensation Fund Linked to

Fuel Consumption

Shipowners’ Preference

IMO Compensation Fund Linked to Fuel Consumption

Addressing CBDR….

Ü  If governments decided, industry would support funds being directed to help climate change projects in developing nations

Ü  If governments decided, possible linkage to UNFCCC ‘Green Fund’

Report on Climate Finance

Ü  Welcome of acknowledgment of IMO progress, and ‘fuel levy’ as an MBM option

Ü  High level UNFCCC / IMO / ICAO Working Group worth exploring

Link to UNFCCC Green Fund? Ü But shipping’s contribution must reflect share of world emissions Ü Governments must not keep money for themselves Ü Must not become a tax on trade

Conclusions Ü  Significant emission reductions more

likely if agreed by IMO on global basis Ü  If IMO not permitted to develop MBMS,

danger of regional/unilateral action Ü  UNFCCC/IMO Group on shipping

finance should be considered by governments

Shipping is Life Blood of World Trade

www.ics-shipping.org www.shippingandco2.org

Thank you For more information: