1. Shipping Industry Combating Climate Change
International Shipping and Shipowners
Reducing GHG Emissions
Kristian R. Fuglesang
Bonn, 5th August 2010

2. International Shipping’s Environmental Performance
Oil pollution
– reduced by more than 95% since 1970s
Engine efficiency
- improved by more than 20% in last 15 years
Toxic air emissions (SOx)
– being further reduced by approximately 90% over the next 10 years
GHG emissions
- adoption of voluntary measures reducing Volatile Organic Compound (VOC) emissions by over 80%
- IMO programme of measures in place to address CO2 emissions

3. Emission of CO2
Source: IMO

4. CO2 Emissions per Unit Load by Transport Mode
Large Tanker
Large Containership
Railway
Coastal Carrier
Small-size
Commercial Truck
Airplane
Standard-size
100
200
300
400
398
226 49 11 6 3 1
Units Relative
Shipping energy efficient
Source:Ministry of Land, Infrastructure and Transport (Japan): The Survey on Transport Energy 2001/2002 MOL (Japan): Environmental and Social Report 2004 4 4

5. World trade growth

6. Why International Shipping is different
Global industry – worldwide trading by international fleet from developing and developed countries
Regulated internationally, on a level playing field basis, principally through the IMO
Extensive framework of international regulations in place for all ships covering:
design, construction, equipment and operation
- i.e. safety, security, and protection of the marine environment, including air emissions

7. Why International Shipping Is Different

8. Measures applied to reduce GHG emissions
Technical measures: incentivising designers, manufacturers, owners, etc.
- Design Index applicable to all new ships
Operational measures: incentivising operators, charterers, shippers, ports, etc.
- Performance indicators applicable to all ships, irrespective of flag
Economic measures: to complement other measures
- To be equally applicable to all ships

9. Measures being applied to reduce GHG emissions
Technical measures: owners working with designers, manufacturers and owners
- Voluntary rating system under development
Operational measures: owners working with charterers, port authorities and terminal operators
- Developing optimal arrival and optimal speed methodologies
- Voluntary VOC reduction measures already adopted
- Energy Efficient Management Guidelines published
Economic measures: owners working with charterers and others
- Under discussion and evaluation at IMO

10. Virtual arrival project
Better coordination of tankers’ arrival in port.
Cooperation among several stakeholders
Improve efficiency when a tanker is otherwise likely to wait until terminal is ready for her
Often tankers sail at full speed and then have to wait for days before the terminal is ready
Instead: agreement between charterer and shipoperator enabling the vessel to sail at optimum speed to arrive when terminal is available

11. Virtual arrival project
Win-win situation
Based on trust and transparency
“virtual arrival” potential:
Speed reduction leads to considerably reduced fuel consumption
>15% CO2 reduction
Reduction in nitrogen and sulphur emissions
Decreases port congestion
Fuel costs: 60 – 80% of operation/running costs

12. Thank you for your attention