Sustainable Seaborne Transport — Our Common Challenge Shipping Emissions — What are the next steps? Peter M. Swift Managing Director, INTERTANKO

INTERTANKO 290+ members operating ca ships > 80% of independent oil tanker fleet and > 85% of chemical carrier fleet - strict membership requirements, including adoption of best practice policies 350+ associate members - in oil and chemical tanker related businesses One of the Association’s Primary Goals: Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of: Zero fatalities, Zero pollution, Zero detentions

INTERTANKO – Finger on the pulse Offices in London, Oslo, Washington, DC, Singapore, Brussels and Manila Members in 45 countries Associate members in a further 20+ countries - providing first-hand and immediate feedback 5 Regional Panels – covering all continents Observer Status at IMO, IOPC, OECD and UNCTAD

Shipping Emissions — What are the next steps? Exhaust Gas Emissions – successfully addressed through revision to IMO MARPOL Annex VI (SOx, NOx and VOCs) Green House Gas Emissions – underway at IMO and through industry measures

Relative Energy Efficiency of Ships Source: INTERTANKO/Maersk Group km Container Ship 6,600 TEU Train -Diesel Truck Boeing Kilometres travelled by 1 tonne of cargo using 1 litre of fuel

Shipping’s GREEN Credentials This car, weighing one tonne, uses 1 litre of fuel to move 20 kms This (VLCC) 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

Performance Rating for Ships Ship Performance Index: CO 2 / work done IMO developing: For New Ships : Design Index For Ships in Service : Operational Index and Best practice guidance on measures to reduce CO2 emissions

Example of Industry application of Performance Index Application of Design Index: Establishment of a Reference Value for a New Ship (i.e. a Target) Development of a Rating System relative to the Reference Value Similar to the performance rating of white goods

IMO reviewing economic measures to reduce CO 2 emissions Bunker Levy Emissions Trading Scheme Other, e.g. differentiated charges Guiding principles: any measure should: Be effective in reducing global GHG emissions Be binding on and applicable to all flag states Be cost effective Not (significantly) distort competition Support sustainable environmental development without penalising trade growth Promote technical innovation and leading technologies Be practical, transparent, fraud-free, easy to administer

Shipping’s Economic Driver - and biggest challenge ? Source: IEA/Clarkson € per litreUS$ per tonne Increase in gasoline price, 2008/2004: 40% Increase in bunker price, 2008/2004: > 400% Bunker price Rotterdam $ per tonne Gasoline price at the pump in Germany Bunker price Rotterdam

Sustainable Seaborne Transport – Our Common Challenge

Industry Commitment The Shipping Industry is committed to playing its part in finding solutions to reduce greenhouse gas emissions. Industry: Taking a pro-active approach to reductions in CO 2 emissions Encouraging innovation to improve performance Continues to support global trade Encourages modal shift to shipping to reduce overall emissions

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