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RECENT DEVELOPMENTS AND CURRENT

ENVIRONMENTAL CHALLENGES FOR IMO

Dachang DuSenior Deputy Director

Marine Environment DivisionInternational Maritime Organization

St. Petersburg, October 2009

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PREVENTION OF AIR POLLUTION FROM SHIPS

MARPOL Annex VI adopted in 1997

• Prohibits ODS in line with the Montreal Protocol

• Regulates exhaust gas emissions:

NOx - a reduction of 6-10% as compared with

un-regulated engines

SOx – Global cap – 4.5%

SECA cap – 1.5%

• Greenhouse gases not covered

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• As land-based sources of emissions were abated and stringently regulated, e.g. power plants & road transport, ship emissions were growing continuously – percentage-wise

Ship emissions growing and becoming more conspicuous

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Estimate from Port of Los Angeles

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Revision of Annex VI - Process

MEPC 53 (July 2005): decided to undertake the review

MEPC 54 ⇨ MEPC 55 ⇨ MEPC 56 ⇨ MEPC 57

MEPC 58 (October 2008): Adopted the revised text by consensus

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TACIT ACCEPTANCE PROCEDURE

The revised MARPOL Annex VI shall be

deemed to have been accepted on

1 January 2010, and shall enter into force on

1 July 2010.

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NOx requirements under the revised Annex VI

Nitrogen oxides (NOx)

• Tier I is the current NOx limits, implemented by the industry since 2000

• Tier II NOx standard for new engines installed on ships constructed on or after 1 January 2011 – (a reduction of 15.5 – 21.8% from Tier I levels)

• Tier III NOx standard for new engines installed on ships constructed on or after 1 January 2016 - (a reduction of 80% from Tier I levels)

• Existing engines installed between 1990 and 1999 with a power rating of 5000 kW and a 90 litre per cylinder volume will have to comply with Tier I

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SOx requirements under the revised Annex VI

Globally:Prior to 1 January 2012 – sulphur limit – 4.50%From 1 January 2012 - sulphur limit - 3.50 %From 1 January 2020 - sulphur limit - 0.50 %

The 0.50 % sulphur limit will be subject to a review to be completed in 2018 and in the event the review is unsuccessful, the 0.50 % limit will default to 1 January 2025

Sulphur oxides (SOx) & Particulate matter (PM)PM is included in the scope of the amended Annex VI, but no explicit PM limits introduced, as PM will be reduced as a function of reduced sulphur

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In Emission Control Areas (ECAs)Prior to 1 July 2010 – sulphur limit : 1.50%From 1 July 2010 - sulphur limit : 1.00 % From 1 January 2015 - sulphur limit : 0.10 %

EquivalentsThe use of exhaust gas cleaning systems as well as other alternative technologies or fuels may be used to meet the sulphur limits.

ECAs under the revised Annex VI

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TWO EXISTING ECAs

1 The Baltic Sea

2 The North Sea

A NEW ECA?

MEPC 59 (July 2009) approved the North American Emission Control Area, which is expected to be adopted at

MEPC 60 (March 2010)

UNFCCC, adopted in New York in 1992, in force from

1994Kyoto Protocol, adopted in

1997, in force from 2005. Article

2.2:“The Parties included in Annex I shall pursue limitation or reduction of emissions of greenhouse gases not controlled by the Montreal Protocol from … marine bunkers fuels, working through … the International Maritime Organization, …”

THE CLIMATE CHANGE ISSUE

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Number of ships

GT DW

Annex I flag States

20,872 (33.42%)

209,015,681 )26.08%(

263,820,104 )22.82%(

Non-Annex I flag States

41,119 (66.58%)

593,330,359 )73.92%(

892,384,249 )77.18%(

Total 61,862 801,346,040 1,156,204,353

Distribution of the world fleet March 2008

ships above 400 GT

Lloyd’s Register Fairplay

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Flag State 1,000 DWT

Panama 232,148

Liberia 105,227

Bahamas 55,238

Greece 55,145

Marshall Islands 54,644

Hong Kong, China 54,341

Singapore 51,043

Malta 40,201

China 34,924

Cyprus 29,627

Flag States and ownership of the world fleet 2007

Country of owner 1,000 DWT

Greece 170,181

Japan 147,507

Germany 85,043

China 70,390

Norway 48,697

United States 48,261

Hong Kong, China 45,053

Republic of Korea 32,287

United Kingdom 26,757

Singapore 25,723

Largest flag States Largest ship-owning countries

Source: UNCTAD, 2007.

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Air Pollution Conference in September 1997Resolution 8 on “CO2 emissions from ships”,

invites IMO to:• co-operate with UNFCCC• undertake a study on GHG emissions• consider feasible GHG reduction

strategies

IMO’s Work on Reduction of GHGfrom Ships

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2000 IMO GHG study: Summary of conclusions

• Significant potential for reduction from operational measures

- some operational measures will require participation of others than shipowners• Technical measures easier to implement through regulations

- new ships more feasible than retrofitting existing ships

- Measures related to hull, engines and propeller are general measures for energy savings• Limited potential to prevent growth in the total emissions from ships if the increase in demand for sea-transport continues• GHG emissions from ships: 1.8% of the world’s total

THE MEPC CONTINUED WORKING…

MEPC 53 (July 2005) ⇨ MEPC 54

MEPC 55 ⇨ MEPC 56 ⇨

MEPC 57 ⇨ MEPC 58 ⇨

MEPC 59 (July 2009)

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2007 CO2 emissions from ships

Total inventory 1019

Domestic / fishing (*)

- 176

International shipping

= 843

(*) Forcast based on IEA 2005 data

CO2 emissions – Million tons

High estimate: 1052

Low estimata: 682

Assessed uncertainty > +/- 20%

May improve with better activity data

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Comparison with other modes (2005)

Data: International Shipping: This study. Other IEA. Reference year: 2005

CO2 emissions from transport (2005)

0

1000

2000

3000

Rail (IEA) Road diesel (IEA) Aviation (IEA) Shipping (This study)

CO

2 (

Mill

ion

ton

s)

Total incl. domestic and fishing

International shipping

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Share of Global Emissions

Manufacturing Industries and Construction

18,2 %

Other Energy Industries

4,6 %

Unallocated Autoproducers

3,7 %

Main Activity Electricity and

Heat Production35,0 %Transport

21,7 %

Other Sectors 11,6 %

International Shipping

2,7 %

International Aviation1,9 %

Domestic shipping &

fishing0,6 %

Data: International Shipping: This study. Other IEA. Reference year: 2005

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Outcome of MEPC 59

• MEPC 59 agreed on a package of technical and operation measure

• MEPC 59 agreed on a work plan to continue developing market-based mechanisms

After COP 15:• Regulatory action to be considered by MEPC 60 (March 2010) and MEPC 61 (October 2010)

MEPC 59 benefited from the Second IMO GHG Study (2009)

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Summary of the Second IMO GHG Study (2009)

• Carbon dioxide is the most important GHG emitted by ships

• Shipping emits: 3.3% of the global

anthropogenic CO2

• International shipping: 2.7% of the global anthropogenic CO2

• If no regulations, ship emissions may grow significantly as a result of growth in shipping

Scenarios for CO2 emissions from International Shipping from 2007 to 2050 in the absence of climate policies

0

1000

2000

3000

4000

5000

6000

7000

8000

2000 2010 2020 2030 2040 2050

CO

2 e

mis

sio

ns

fro

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hip

s (m

illio

n to

ns

CO

2 /

yr)

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A1FI

A1B

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A2

B1

B2

Max

Min

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Summary of the Second IMO GHG Study (2009)

• There is a significant potential for reduction of GHG through technical and operational measures

• Market-based instruments are the most environmentally effective and cost-effective instruments

• A mandatory EEDI is a cost-effective measure to improve the efficiency of new ships

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Assessment of Emissions Reduction Potential

DESIGN (New ships)Saving of

CO2/tonne-mile

Combined Combined

Concept, speed & capability 2% to 50%

10% to 50%

25% to 75%

Hull and superstructure 2% to 20%

Power and propulsion systems

5% to 15%

Low-carbon fuels 5% to 15%

Renewable energy 1% to 10%

Exhaust gas CO2 reduction 0%

OPERATION (All ships)

Fleet management, logistics & incentives

5% to 50%

10% to 50%Voyage optimization 1% to 10%

Energy management 1% to 10%

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MEPC 59

• MEPC 59 agreed to defer the debate on the type of legal instrument and application issues to MEPC 60, where the issues should be discussed in light of the outcome of COP 15

• MEPC 59 agreed that any regulatory scheme applied to GHG emissions from international shipping should be developed and enacted by IMO as the most competent international body

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MEPC 59

• There was a general agreement that the reduction levels for a potential market-based instrument should be revisited at MEPC 60

• MEPC 59 noted that it was a general preference that the greater part of any funds generated by a market-based instrument under the auspices of IMO should be used for climate change purposes in developing countries through existing or new funding mechanisms under the UNFCCC or other internatonal organizationsMarket-based measures: Fuel oil levy or emission trading?)

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MEPC 59 agreed to circulate:

• the interim Guidelines on the EEDI for new ships

• the interim Guidelines for voluntary verification of the EEDI

• the Guidance on the SEEMP for all ships (new and existing)

• the Guidelines for voluntary use of the EEOI

MEPC 59 noted the discussion on ships and propulsion systems not fully compatible with the current EEDI and invited comments to MEPC 60

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Energy Efficiency Design Index

societyforBenefit

ttalEnvironmenEEDI

cos

• Cost: Emissions of CO2

• Benefit: Cargo capacity & transport work

Complex formula to accommodate most ship types and sizes

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Ship Energy Efficiency Management Plan

Onboard management tool to include:

• Improved voyage planning (Weather routeing/Just in time)

• Speed and power optimization

• Optimized ship handling (ballast/use of rudder and autopilot)

• Improved fleet management

• Improved cargo handling

• Energy management

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Energy Efficiency Operational Indicator

• An efficiency indicator for all ships (new and existing) obtained from fuel consumption, voyage (miles) and cargo data (tonnes)

Cargo OnboardCargo Onboard x x (Distance traveled)(Distance traveled)

Fuel Consumption in OperationFuel Consumption in Operation=

Actual FuelActual FuelConsumptionConsumption

IndexIndex

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COP 15 Outcome

Three main IMO objectives:

• IMO continues to be entrusted to develop and enact global regulations to limit or reduce GHG emissions from ships engaged in international trade

• The regulations are applied to ships according to the non-discriminatory principle on which the IMO regulatory framework is based

• The interests of developing countries are fully taken into account

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Thank you for your attention!

For more information please see: www.imo.org