Environmental regulation as a driver for technology development and Blue Growth Jenny N. Braat ceo Danish Maritime

Environmental requirements Consensus : more people, more trade, More Economic Growth With economic growth consumers will require a better environment

New Technology Increases in sea trade requires improved technologies just to maintain present emission levels We have to keep moving just to stay in the same place This has been done before.

Oceans are not just roads Oceans are reservoirs of food, energy, and other resources, as wells as transport lanes –Some areas – like the Baltic – are especially vulnerable –BUT Ships move in and out of all waters regional rules limit movement & foster inefficiency reduce sustainability

Technology and Environment Shipping is a major contributor to environmental impact Restraint is worthwhile Fuel saving technology –competes with alternative investments –fuel prices fluctuate Unprofitable technologies –NOx abatement –Ballast water treatment Transition from emerging to mature technologies is getting faster But implementation of legislation is getting slower ships MW W ind Farm Energy 30 bio. USD 60 bio. USD Annual CO 2 -savings: 100 mio. tons

Regulation as driver If delays and uncertainty promote regional laws and changes in requirements –Potential innovators will: Wait If Regulatory details change requirments for the technology –Potential innovators : Are blocked Delays reduce operation –Potential innovators need feed-back SOx delays will in the same way raise concerns for manufacturers and developers Enforcement : Non-compliance should not be too cheap

Regulating for the Environment: Global Regulation Goal-based Regulation Stepwise Introduction Robust Regulation Enforcement Harmonize Regional Requirements Allow innovation Keep the dates fixed Avoid frequent adjustment Make compliance easy