Climate Change and Interventions by IMO and EU Dr Zabi Bazari | GMN Consultant 1st MTCC-Africa National Workshop | 19-20 June 2017 | Mombasa, Kenya The Global MTCC Network (GMN) project is funded by the European Union and implemented by IMO The views expressed in this presentation can in no way be taken to reflect the views of the European Union

Content 1 GHG emissions and need for control 2 IMO activities 3 IMO regulatory framework 1 2 3 4 EU strategies and framework 5 Conclusions

GHG emissions and the need for control

Global anthropogenic GHG emissions Carbon dioxide: Most of the atmospheric GHG emissions. From many sources. Methane: Agriculture, livestock, mining, transportation, sewage and natural gas. Nitrous oxide: Mainly from industrial agriculture fertilizers. Halocarbon (Fluoro gases): Non- natural. Extensively used as refrigerants. Other gases like ozone or water vapour have GHG properties. Global anthropogenic GHG emissions Source: IPCC Fourth Assessment Report: Climate Change 2007

GHG warming effect GHGs in the earth atmosphere prevents the escape of heat from earth in the form of infrared radiation. This leads to warming of the earth. An idealised model of the natural greenhouse effect. [IPCC 2007 AR4 WG I]

Carbon cycle: CO2 sources and sinks

Evolution of GHG emissions in the atmosphere over time The link between air emissions and industrial activities are unequivocal. All types of GHG emissions show a sharp rise since industrialisation

IPCC: Large CO2 reductions are needed… to stabilise CO2

Shipping CO2 emissions

Shipping CO2 emissions (2nd IMO GHG Study 2009) Second IMO GHG Study, 2007 data: 870 MT of CO2 2.7% of global levels 10

Shipping CO2 emissions (3rd IMO GHG Study 2014) IMO, under Kyoto Protocol, is tasked to deal with GHG emissions from international shipping. IMO has carried out 3 major GHG studies so far. 3rd IMO GHG Study 2014 shows: Projection shows an increase of 50% up to 250% of shipping emissions by 2050 This diagram does not include the impact of 2020 sulphur (if finalized). International shipping share of total global GHG emissions has been 2.2% in 2012

Existing potential for reduction of shipping CO2 emissions DESIGN (New ships) Saving of CO2/tonne-mile Combined Concept, speed & capability 2% to 50% 10% to 50% 25% to 75% Hull and superstructure 2% to 20% Power and propulsion systems 5% to 15% Low-carbon fuels Renewable energy 1% to 10% Exhaust gas CO2 reduction 0% OPERATION (All ships) Fleet management, logistics & incentives 5% to 50% Voyage optimization Energy management  A significant potential for reduction of GHG emissions through technical and operational measures had been identified. Together, if implemented, these measures could increase efficiency and reduce the emissions rate by 25% to 75% below the current levels. Many of these measures appeared to be cost-effective, although non-financial barriers may discourage their implementation. 12 12 12

International and IMO responses

Organizations and instruments United Nations Environmental Program (UNEP) Intergovernmental Panel on Climate Change (IPCC) United Nations Framework Convention on Climate Change (UNFCCC) (1992) Kyoto Protocol (1997) => Paris Agreement (2015) Vienna Convention & Montreal Protocol on Ozone-Depleting Substances (1989) IMO for international shipping (Chapter 4 of MARPOL Annex VI, 2013) Etc. TO INSTRUCTOR: Highlight that several UN organizations are working on the topic.

United Nations Convention on the Law Of the Seas (UNCLOS) The UNCLOS possesses extensive references to the protection of the environment. In its preamble, the UNCLOS recalls the importance to: “Promote the peaceful uses of the seas and oceans, the equitable and efficient utilization of their resources, the conservation of their living resources, and the study, protection and preservation of the marine environment.” UNCLOS demonstrates the importance of protecting the environment via developing proper enforcement mechanisms. The UNCLOS possesses extensive references to the protection of the environment. In its preamble, the UNCLOS recalls the importance to: “Promote the peaceful uses of the seas and oceans, the equitable and efficient utilization of their resources, the conservation of their living resources, and the study, protection and preservation of the marine environment.” UNCLOS demonstrates the importance of protecting the environment and developing proper enforcement mechanisms which can be materialized through certification and inspection regimes

UNFCC and IMO: Why IMO energy efficiency regulation? Within Kyoto Protocol: “The Parties included in Annex I shall pursue limitation emissions of GHG from marine bunker fuels, working through the International Maritime Organization” [Extracts from Article 2.2 of the Kyoto Protocol] To Instructors Highlight the role given to IMO within the UNFCCC framework.

MARPOL Annex VI – Prevention of Air Pollution from Ships Ozone Depleting Substances Volatile Organic Compounds Nitrogen Oxides (NOx) Shipboard Incineration Sulphur Oxides (SOx) Energy Efficiency

IMO energy efficiency regulatory activities MEPC68 IMO Energy Efficiency Regulatory Developments Res olution MEPC.212(63) EEDI Calculation Resolution MEPC.214(63) EEDI Verification Resolution MEPC.213(63) SEEMP Resolution A.963 (23) “IMO policies and practices related to reduction of GHG emissions from ships” Dec 2003 Jun e 2005 Mar 2008 GHG Working Group 2 Feb 2009 MEPC Circ. 681 EEDI Calculation MEPC Circ. 682 EEDI Verification MEPC Circ. 683 SEEMP MEPC Circ. 684 EEOI Jul Energy Efficiency WG 2010 Sep 1997 201 2 July 1 E EDI & Regs. Adopted Group 1 MEPC40 MEPC53 MEPC57 MEPC58 MEPC59 MEPC60 MEPC61 MEPC62 MECP63 MEPC64 MEPC65 MEPC66 MEPC67 Resolution 8 “CO2 emissions F rom ships” MARPOL VI Amendments Resolution MEPC 203(62) May 2013 March 2014 Oct Circ.471, EEOI May 2015 3 rd GHG Study 2014 MARPOL VI MEPC.251(66) Resolution MEPC.245(66): Guidelines olution M EPC.231(65) Reference Lines olution MEPC.232(65) Minimum power MEPC.233(65), R eference lines for cruise ships MEPC.1/Circ.815 Innovative EE Technologies MEPC.1/Circ.8 16 Consolidated on EEDI verification Debate on Data collection To Instructors Give an overview and refer to Module 1 introduction 18 18

Future strategies for further GHG reduction: Under debate IMO Energy Efficiency Regulatory Framework 5. DCS Reporting To Instructors Give an overview and describe how the three instruments will work together Future strategies for further GHG reduction: Under debate

Energy Efficiency Design Index (EEDI) Attained EEDI – Actual EEDI of a ship Required EEDI – Regulatory limit for EEDI Reference line X: Reduction factor Required EEDI as a function of ship size and year of construction Reference line Reduction rate

Ship Energy Efficiency Management Plan (SEEMP) SEEMP framework PART I An energy management plan for ship-board implementation. Comprises a number of measures, how, who and when should be implemented. PART II Will include a Data Collection Plan (DCP). To be reviewed and agreed by the Administration. To Instructor Explain the diagram fully. The boxes marked RED should be explained in more detail.

Data Collection System (DCS) Data Collection and Reporting (company) Data Verification and Reporting (flag State) Data Storage and Future Use (IMO) The system has three main elements: Data collection and reporting to flag Administration by shipping companies Data verification and reporting to IMO by flag Administration Data storage in a centralised database at and by the IMO. To Instructor Read the text and explain.

IMO DCS Overview and Timeline

IMO activities and Paris Agreement Paris Agreement requires: Parties to the Paris Agreement will prepare the “Nationally Determined Contributions” (NDCs) by late 2018 There is no DC for global shipping, and the sector isn’t included in the Paris Agreement International shipping is expected to make its contribution towards global GHG reduction (thus come up with its own SDC – Shipping Determined Contribution). IMO roadmap for developing strategies: Agreed roadmap in MEPC 70 (2016) and expected to be adopted in MEPC 71 An initial strategy to be adopted in the first half of 2018 The final strategy to be firmed up by 2023 (when data through DCS are available). DCS starts in 2019.

IMO Capacity Building Activities

MARPOL Annex VI regulation on technical cooperation Regulation 23 of MARPOL Annex VI, Chapter 4, covers the “Promotion of technical co-operation and transfer of technology relating to the improvement of energy efficiency of ships” and states that: 1 Administrations shall ……… promote and provide, as appropriate, support directly or through the Organization to States, especially developing States, that request technical assistance. 2 The Administration of a Party shall ……. promote the development and transfer of technology and exchange of information to States which request technical assistance, particularly developing States, in respect of the implementation of measures to fulfil the requirements of chapter 4 of this annex, in particular regulations 19.4 to 19.6. To support the above, Resolution MEPC.229(65) on technology transfer was adopted

Integrated Technical Cooperation Programme (ITCP) Designed to assist developing countries to comply with international rules and standards. Priority: Focus on human resources development and institutional capacity building Resolution A.986(24) on “The Importance and Funding of Technical Cooperation as a Means to Support the United Nations Millennium Declaration and Development Goals (MDGs)” Priority to activities supports the early ratification and effective implementation of IMO instruments.

IMO TC activities – examples of energy efficiency capacity building support IMO-KOICA project on "Building Capacities in East Asia Countries to Address GHG Emissions from Ships" Sub-regional/regional and national workshops to raise awareness of measures to address GHG emissions from international shipping. IMO Model Course on energy efficiency operation of ships, WMU Comprehensive update of the Train the Trainer package on energy efficiency ship operation. A large number of capacity workshops under IMO major projects.

IMO major projects GEF-UNDP-IMO Project: Transforming the Global Maritime Transport Industry towards a Low Carbon Future through Improved Energy Efficiency IMO-EU Global MTCC Network (GMN) project: Funded by the EU and implemented by IMO Other related projects: Feasibility study on LNG Fuelled Short Sea and Coastal Shipping in the Wider Caribbean Region Pilot study for the use of LNG as a fuel for a high speed passenger ship operating from the Port of Spain Ferry Terminal in Trinidad and Tobago Ship-port interface project Etc.

IMO’s response path to promote tech. transfer and capacity building Reg. 23 -MARPOL Annex VI, MEPC Resolution on TT and CB, Ad-hoc EWG-TT ITCP: Awareness raising and capacity building tools Major Projects: Capacity building & private sector partnerships Global network to promote technology cooperation and transfer Institutionalize capacity building and tech. transfer support at regional level for sustainable Impact IMO’s response path to promote tech. transfer and capacity building GMN Project Page  30 Page  30

 EU Efforts

EU Energy Policy EU 2006 Green Paper, “A European Strategy for Sustainable, Competitive and Secure Energy”. The EU 20-20-20 energy policy: By 2020: 20% reduction in GHG emissions 20% use of renewable energy/fuel 20% improvement in energy efficiency Reductions are relative to 1990. EU has now set targets beyond 2020 as well.

EU 20-20-20 plan: Supporting directives The EU 20-20-20 Renewable Energy Directive was adopted at the end of 2008 EU Renewable Energy Directive 2009/28/EC: Binding measures for member states to help EU to achieve overall 20%. EU Energy Efficiency Directive 2012/27/EU: Binding measures to help the EU reach its 20% target.

EU support for GHG mitigation in other countries EU supports mitigation activities in other countries, for examples in areas: Supporting countries in capacity building for low emission development strategies (LEDS) and related nationally appropriate mitigation actions (NAMAs) . Supporting countries in preparing and submitting Intended Nationally Determined Contributions (INDC). Promoting International Cooperative Initiatives (ICI) and encouraging low-emission development pathways in key sectors (e.g. energy efficiency, renewable energy, reform of energy subsidies, …) Promoting the development and transfer of climate relevant technologies. Source: EU presentation on “NGOs, Civil Society at the heart of solutions for Climate Change”

EU International cooperation and financial commitments The EU is a leader in the provision of climate finance for developing countries: €14.5 bn in 2014 alone to support mitigation and adaptation At least 20 per cent of the EU budget in the 2014-2020 period will be spent on climate-related projects and policies, in the EU and externally. $4.6bn from EU Member States to the Green Climate Fund in addition to bilateral and multilateral funding. Source: EU presentation from web Source: EU presentation on “NGOs, Civil Society at the heart of solutions for Climate Change”

EU-ETS (Emissions Trading System) The EU ETS is a cap and trade market for carbon allowances. It covers 45% of EU emissions, including energy intensive sectors and approximately 12,000 installations. The major features of the EU-ETS are: A centralised EU-wide cap on emissions is set. 'Cap' will reduce over time: The 'cap' will decline by at least 1.74% a year, so that emissions in 2020 will be at least 21% below their level in 2005 It will cover more industries in the future. Plans to include aviation and shipping in the system

EU approach to shipping GHG emissions EU has strongly advocated for a major reduction in GHG emissions from international shipping. In this area, the EU plan of action is a phased approach: Phase 1: Establish a technical IMO regulatory framework. Phase 2: Implement an MRV scheme to establish the fuel consumption and CO2 emissions from international shipping. Phase 3: Identify whether the efficiency standards are achieving the EU’s desired absolute CO2 emissions reductions and what else should be done, e.g. (MBM). Within EU MRV, a reporting system has become mandatory.

EU MRV - Overview Plan is needed. EU MRV monitoring requirements [Lloyd’s Register 2015] Source: Lloyd’s Register Plan is needed. Fuel consumption measurement: 4 methods of measurement acceptable. Annual emissions reports must be verified Reports will be collected in a database. Verification must be carried out and Document of Compliance (DOC) issued.

Inclusion of shipping in EU-ETS The European Parliament recently made a decision to include shipping in EU Emissions Trading Scheme in 2023. The scheme will only start if there has been no comparative action taken by the IMO by 2023.

EU DG CLIMA (Climate Action) The Directorate-General for Climate Action (DG CLIMA) leads the EC's efforts at EU and international level. Mission and main activities: Formulate and implement climate policies and strategies Take a leading role in international negotiations on climate Implement the EU's Emissions Trading System (EU ETS) Monitor national emissions by EU member countries Promote low-carbon technologies & adaptation measures

Conclusions There are urgent needs to address global warming through GHG emissions mitigation efforts. International efforts started in 1992 and continues under the auspices the UNFCCC framework convention. IMO and EU have been proactive in their own areas: IMO leading the effort for international shipping EU leading the global efforts through investment in the EU and developing countries. In this lecture, some activities by the IMO and the EU were highlighted.

Thank you for your attention! http://gmn.imo.org/