Climate Challenge and the Tanker Industry Tim Wilkins Regional Manager Asia-Pacific Environmental Manager Image Courtesy of NORDEN AS Maritime Cyprus 2009 Young Executives Session Climate Change: a Challenge for Shipping too Cyprus 29 September 2009

...next 10-15mins Tankers and the environment; GHGs and climate change 2. Regulating shipping’s GHG emissions 3. Tanker industry initiatives 3.1 Owners and operators 3.2 Charterers 4. Concluding remarks

Tanker owner Oil company executive Association representative? the tanker industry and public perception ? 1. Tankers and the environment

the environmental lobby groups keep their eye on the tanker industry 1. Tankers and the environment

what the general public thinks of the tanker industry, thanks in part to the media 1. Tankers and the environment

...the regulators and politicians? 1. Tankers and the environment

Source: ITOPF Number of spills over 700 tonnes Industry Performance on Oil Spills (35 year trend)

1. Tankers and the environment Industry Performance on Oil Spills Tonnes spilt per billion tonne-mile transported Data source: ITOPF/Fearnleys

Efficient, effective and environmentally sound cargo carriers Source: NTM (Swedish Network for Transport and the Environment) Comparative carbon dioxide emissionsComparative air pollutants 1. Tankers and the environment: GHGs and Climate Change

This car, weighing one tonne, uses 1 litre of fuel to move 20 kms This oil tanker uses 1 litre of fuel to move one tonne of cargo 2,500 kms –more than twice as far as 20 years ago 1. Tankers and the environment: GHGs and Climate Change

Air emissions “The shipping industry has so far escaped publicity. It has been left out of the climate change discussion...It tells me that we have been ineffective at tackling climate change so far" Dr. Pachauri, Chairman IPCC “...new figures highlight the shocking complacency of governments which have completely ignored shipping emissions.” Caroline Lucas, MEP “...the shipping industry must take its "share of responsibility" for tackling climate change.” Spokesman for UK Government 1. Tankers and the environment: GHGs and Climate Change

IMO’s Three Step Approach: 1. Energy Efficiency Design Index (EEDI) for new ships; 2. Ship Energy Efficiency Management Plan (SEEMP), including a ship Energy Efficiency Operational Indicator (EEOI) for ships already in service; 3. Market Based Instruments (MBI); a)GHG Compensation Fund b) Emission Trading System (ETS) c) a hybrid of the two 2. Regulating shipping’s GHG emissions

INTERTANKO’s Tanker Efficiency and Emission Management Plan 1. Introduction 1.1 INTERTANKO’s Best Practice on Tanker Emissions and Energy Efficiency 1.2 IMO’s Ship Energy Efficiency Management Plan (SEEMP) 1.3 Oil Companies ‘Energy Efficiency and Fuel Management’ Guidance 2. Establishing the Company and Ship Management Plans 2.1 Company Efficiency Management Plan 2.2 Ship Energy Efficiency Management Plan (SEEMP) 3. Voyage Optimisation Programme 3.1 Speed selection optimization 3.2 Optimised route planning 3.3 Trim Optimisation 4. Propulsion Resistance Management Programme 4.1 Hull Resistance 4.2 Propeller Management 3. Industry initiatives Tanker operators

INTERTANKO’s Tanker Efficiency and Emission Management Plan 5. Machinery Optimisation Programme 5.1 Main Engine monitoring and optimisation 5.2 Variable control units for engine room fan/pumping systems 5.3 Incinerator usage 5.4 Optimal use of bow thrusters 5.5 Diesel engine optimisation 5.6 Waste heat recovery 5.7 Independent inert gas generators 5.8 Frequency controlled equipment 3. Industry initiatives Tanker operators

INTERTANKO’s Tanker Efficiency and Emission Management Plan 6. Cargo Handling Optimisation 6.1 Cargo vapour control procedure on all crude tankers 6.2 Cargo temperature control optimisation 7. Energy Conservation Awareness Plan 7.1 Crew familiarisation and training 7.2 Accommodation-specific energy conservation programme 3. Industry initiatives Tanker operators Image courtesy of Kristen Navigation

OCIMF “Energy Efficiency and Fuel Management” – an appendix to TMSA 2 OCIMF opens for consideration for c/p clauses to optimise the voyage and other operations to save energy during transportation Virtual Arrival (just in time) TMSA - Tanker Management Self Assessment 3. Industry initiatives Charterers

Tanker Shipping and the Climate Change Challenge Tanker industry: proven environmental record Regulation will be developed Technical Market based – must be 1. 1.Effective in contributing to the reduction of total GHG 2. 2.Environmentally sustainable without negative impact on global trade and growth 3. 3.Comprehensive, efficient, transparent and credible enforcement & monitoring Tanker industry influencing its own destiny – taking the initiative – best practice, research and development, technical and operational implementation Charterers and others need to be part of this progress 4. Concluding remarks

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