1. Carbon Footprint Proposal: Developing a Common Methodology for Ocean-Going Vessels Angelina Ermakov Canada 44 th APEC Energy Working Group Washington, DC November 5-9, 2012

2. Context for this proposal Key elements of the proposal Main Objectives Proposed approach Questions and contact info 44th APEC Energy Working Group Washington, DC, November 5-9, 2012 OUTLINE

3. BACKGROUND September 2011, San Francisco: APEC Transportation and Energy Ministerial Conference (TEMC) Action Agenda: Strengthening transportation's role in a clean-energy future Powering low-carbon transport Greening the supply chain: energy efficient freight transportation November 2011, Honolulu Leaders’ agreed to aspirational goal to reduce APEC’s aggregate energy intensity by 45 per cent by 2035. August 2012, St. Petersburg: Transportation Working Group endorsed the Carbon Footprint Proposal, for consequent endorsement by the EWG 44th APEC Energy Working Group Washington, DC, November 5-9, 2012

4. CURRENT CONTEXT Greening Supply Chains: link activity levels with emissions Industry interest to measure carbon footprint: Maersk, Walmart, Canadian Tire, Port of Seattle and Port Metro Vancouver IMO initiatives: –Energy Efficiency Design Index –Ship Energy Efficiency Management Plan and Energy Efficiency Operational Indicator 44th APEC Energy Working Group Washington, DC, November 5-9, 2012 NO COMMON METHODOLOGY TO ALLOCATE VESSELS’ EMISSIONS PER PORT, PER CARGO IN THE APEC REGION

5. TO MEASURE GHG EMISSIONS INTENSITY OF COMMERCIAL ROUTES IN ASIA PACIFIC

6. THE PROPOSAL SEEKS TO: To engage policymakers and shipping industry stakeholders to collaborate on the scope of the project via 2 Workshops Directly link emissions and energy use to transportation activities Develop the emissions and energy use allocation criteria and test the methodology Not to set up a new data collection process, but only use data from a sample of ocean going-vessels on a specific ‘pilot’ route 44th APEC Energy Working Group Washington, DC, November 5-9, 2012

7. 44th APEC Energy Working Group Washington, DC, November 5-9, 2012 Improve shippers’ ability to measure vessels energy and emission intensity and find opportunities to improve both, thus reducing fuel costs and ultimately, contributing to improved energy efficiency in the APEC region, towards the APEC aspirational goal of 45% reduction in energy intensity

8. PROJECT’S OUTPUTS Two workshops to engage policymakers and shipping industry stakeholders to incorporate their views into the scope of the project Methodology to directly link emissions and energy use to transportation activities of the marine segment of supply chains Emissions intensities for a chosen commercial route in the Asia-Pacific region Final reports to APEC Transportation Working Group and Energy Working Group 44th APEC Energy Working Group Washington, DC, November 5-9, 2012

9. PROPOSED APPROACH AND TIMELINE Endorsed by the Transportation Working Group: August 2012 Seeking endorsement by the Energy Working Group: November 2012 Following the endorsement, the proposal to be considered by APEC Budget and Management Committee Detailed scope of the project and the work plan to be developed by the project’s overseer 2 Workshops to be organized to engage policymakers and industry stakeholders Progress Report: Transportation Ministers Meeting, September 2013 in Japan Final Report: Energy Ministers Meeting, 2014 44th APEC Energy Working Group Washington, DC, November 5-9, 2012

10. PHASED APPROACH Short-term: Start with emissions from ocean going vessels Marine shipping is a key element in the Asia Pacific to The Americas transportation network Long-term: Potential to link the outcomes of this project to other segments of the supply chain (rail, trucking) if there is interest from the EWG and the TPTWG. 44th APEC Energy Working Group Washington, DC, November 5-9, 2012

11. QUESTIONS or SUGGESTIONS? Please contact: Arlene Turner, Lead Shepherd Transportation Working Group Arlene.turner@tc.gc.ca Angelina Ermakov Transport Canada Angelina.ermakov@tc.gc.ca 44th APEC Energy Working Group Washington, DC, November 5-9, 2012