1. CLEANING UP THE SHIPPING SECTOR
- from Hong Kong to mainland China

2. Main points China has 7 of the world’s top 10 container ports
These port cities are densely populated and highly polluted
Hong Kong spearheaded addressing ship emissions in because of health concerns
Mainland China followed in 2015
Uniform regulations minimizes cargo diversion to the least regulated ports
Challenges remain, but international experiences offer valuable lessons that can help China

3. World’s top 10 container ports (2000-2014)
China’s ports have grown rapidly and competition is severe
World’s top 10 container ports ( )
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 1
Hong Kong
Singapore
Shanghai 2 3
Busan
Shenzhen 4
Kaohsiung 5
Rotterdam
Ningbo-
Zhoushan 6
Dubai
Guangzhou
Ningbo
Ningbo-Zhoushan 7
Los Angeles
Qingdao 8
Long Beach
Hamburg
Guang-zhou 9 10
Antwerp
Tianjin 3

4. Air pollution in China is BAD – NOx, 2014
NASA,

5. Air pollution is China is BAD – PM2.5 (2000-2010)
Sources: Aaron van Donkelaar et al, “Use of satellite observations for long-term exposure assessment of global concentrations of fine particulate matter”,

6. Ships are a major source of air pollution in port cities
Pollution from ships
SOx
NOx
PM2.5
Hong Kong+
44%
33%
42%
Shenzhen§
59%
16% 5%
Shanghai++
22%
17% 4%
+: 2014 data, Includes emissions from all vessels §: 2014 data, Includes emissions from oceangoing vessels; account for share of SO2, not SOx
++: 2013 data, Includes emissions from all vessels 6

7. China’s ports sit at the intersection of high population, choking pollution, and rapid growth7

8. Over 0.5 million people live next to the port,
3.8 million are directly affected by port pollution 8
Photo credit: Christine Loh, BAQ 2012

9. Controlling shipping pollution is late-coming in Hong Kong
PM2.5
SO2 9

10. Hong Kong -- 1st in Asia to combat shipping emissions
Fair Winds Charter
(0.5% sulfur fuel at berth)
Align
with DECA
(0.5% s fuel in 12nm)
Marine
light diesel sulfur rule …
Voluntary
Incentives
Fuel switch at berth rule

11. Earlier concerns and challenges in China (2012 - 2014)
1. Lack of shipping pollution data
2. Which agency should lead?
3. Which agency should enforce the regulations?
4. Forms of solution: technology mandate, regulations (e.g., ECA), etc.
If ECA is adopted, would fuel be available?
5. Impacts of regulations on the shipping industry 11

12. Publicizing the problems and providing solutions12

13. Sharing US and EU experiences13

14. DECA (0.5% s fuel at berth) adopted in Dec 2015
DOMESTIC EMISSION CONTROL AREA (DECA) Timeline
DECA (0.5% s fuel at berth) adopted in Dec 2015
Yangtze river delta ECA: implemented on Apr 1, 2016
Pearl River Delta & Bohai Sea ECAs: Jan 1, 2017
DECA review in 2019:
0.1% s fuel?
Extending coverage?

15. China pioneering DECA regulation in Asia (Dec 2015)
IMO North America ECAs
IMO North Sea & Baltic Sea SECAs
China
Domestic
Emission
Control
Areas (DECAs)
California OGV Fuel Rule
Hong Kong OGV Fuel Switch At Berth Regulation 15

16. Shanghai, Zhejiang and Jiangsu enforcing the DECA regulation
April and May 2016
Vessels inspected
Samples taken on board
Non-compliant vessels found
Shanghai
915
108 10
Zhejiang
631 79 9
Jiangsu
312
179 39
Total
1,858
366 58 16

17. Robust enforcement leads to significant air quality improvements in EU and Hong Kong
Anholt Island, Denmark: 60% drop in
SO2 levels since Jan 2015
Rotterdam:
20% drop in
SO2 levels since Jan 2015
Hong Kong: % drop in
SO2 levels near the port since Jul 2015

18. Beyond DECA: Clean port initiatives
Electric- or LNG-equipment
At dock rail/ ship-ship transshipment
Shore power
LNG or electric
drayage trucks
LNG vessels
Shanghai ✔
Shenzhen
Jiangsu
Guangdong
Qingdao

19. Main concerns and challenges
Impacts of regulations on the shipping industry
Incentivizing green shipping practices
Possible solutions:
DECA: Enforcement capacity, remote measurement
Technologies: LNG vessels, shore power, after-treatment (scrubbers and SCR)
Cost effectiveness
Overcoming barriers to deployment
Cleaning up legacy fleet of inland vessels:
Repowering vs. replacement
Greening the truck fleet inside and outside the ports 19

20. Final thoughts
Cleaning up China’s ports is tackling a major piece of global air pollution problems
China has started with cleaner fuels, and the government is determined to do more
China is eager to learn from international experiences

21. Thank you! .
Photo source: