Shipping and Combating Climate Change

Shipowners reducing GHG emissions

Peter M SwiftCancun, 9 December 2010

International Shipping’sEnvironmental Performance

Industry programmes in conjunction with the IMO:• Oil pollution

– reduced by more than 95% since 1970s• Engine efficiency

- improved by more than 20% in last 15 years• Volatile Organic Compounds (VOCs)

- adoption of voluntary measures reducing Volatile Organic Compound (VOC) emissions by over 80%

and over the next ten years will also deliver:• Toxic air emissions (SOx and NOx)

–sulphur oxide (SOx) emissions being further reduced by approximately 90% and nitrogen oxide (NOx) emissions by approximately 60%

International Shipping’sEnvironmental Performance

and Industry is working to reduce GHG emissions with the IMO on:• Technical measures: incentivising designers, manufacturers, shipbuilders and shipowners, etc.- including the Design Index applicable to all new ships

• Operational measures: incentivising operators, charterers, shippers, ports, etc.- optimising ship speeds, adopting guidelines on energy management programmes and performance indicators applicable to all ships

• Economic measures: to complement other measures - developing appropriate measures to be equally applicable to all ships

Shipping is energy efficient

- environmentally responsible, reliable and cost efficient

235,9

217,1

91,2

72,6

53,8

40,5

29,8

9,0

1,9

0 50 100 150 200 250

VLCC tanker

Bulk carrier

Product tanker

General cargo ship

Container ship

Freight train

Ro-ro ship

Heavy truck

Air plane

km

Transport distance for 1 ton cargo per kg GHG emissions

Source: Danish Shipowners Association

Shipping is energy efficient

US $ 240,000,000,000

…… and still has a massive incentive to continuously reduce its GHG emissions

- the annual fuel bill for international shipping - and one that is set to rise as oil prices rise and cleaner fuels are introduced

- fuel bill is often 60- 80% of total operating costs

Industry has bought in to mandatory efficiency improvements – to reduce GHG emissions on new

ships by 30% by 2025

10%10%

20%

30%

Phase 12015 - 2019

Phase 22020 - 2024

Phase 3on and after 2025on and after 2025

Reference Line TodayDesignIndex(EEDI)

Ship Size(DWT)

Attained EEDI < Required EEDI

[Tankers>20,000 DWT]

Examples of Technical and Operational Mitigation Measures - applied or under investigation

Examples of Technical and Operational Mitigation Measures - applied or under investigation

An example in the tanker shipping sector

Cooperation between charterers and shipowners - Project known as “Virtual Arrival”

When a delay at a port or terminal is identified, the ship’s passage speed is adjusted to meet the new arrival schedule

Resulting fuel savings lead to a reduction in CO2 emissions of typically 15%

http://www.intertanko.com/upload/virtualarrival/virtualarrivalbrochure.pdfhttp://www.intertanko.com/upload/virtualarrival/virtualarrivalinformationpaper.pdf

Other benefits include:Reduced congestion & toxic emissions in the port area Improved reliability/safetyIncreased use of weather routing

International Shipping delivers !

• 90% of world trade

• in a highly energy efficient manner

• and is absolutely committed to continuing to do so, - playing its part in combating Climate Change

THANK YOU FOR YOUR ATTENTION

For more information, please visit:www.intertanko.com

www.shipping-facts.comwww.maritimeindustryfoundation.com

2010 – The Year of the Seafarer