The Korea Shipbuilders’ Association

2011.7.8 OECD Workshop

Contents

2

Climate Change

Earth

Country

Industry

Shipyards

Ships

01 Climate Changes & Actions International

3

International Actions & How

IPCC(1988) 4 Reports

Climate Change – Human factor

UNFCCC (1992/1994)

COP Berlin, Denmark, etc.

Kyoto Protocol

(1997/2005)

Mandatory Sharing

Against 1990 Emission Trading Scheme

Post Kyoto

Protocol

Mandatory Reduction Country

Base Year(1990 or 2005) Reduction Target

02

4

Climate Changes & Actions Domestic(1)

Domestic Actions & How

Framework Act on Green

Growth (2010.4)

Reduction Target of GHG

Introduction of Target

Management System

Committee of Green Growth

Energy Saving, Reduction of GHG

Periodical, Systematic Collection & Analysis of GHG

Establishment of Infrastructure for Target Management by Industry, Company

Increase of Costs (Short-Term)

Rise of Competitiveness (Long-Term)

Why, Goal & Effectiveness

5

Backward

Steel Marine

Equipment

Shipbuilding

Shipping

Forward

Domestic Regulation

(GHG Target Management/ Emission Trading Scheme)

1

International Regulation

IMO Regulation(Ship Operation)

2

Domestic – Regulation for Shipyard(Workshop) and Related Industry(Steel)

International – Building Ship(Ship Design) and Efficient Ship Operation

Impact on Shipbuilding(1) 03

6

• Regulation on GHG emission

of Steel/Shipbuilding Process

- Increasing direct & indirect cost & burden(ex, increasing cost of steel procurement)

• Reconsideration on Domestic

Industrial Conditions

- Introduction of related systems

- Reorganization of responsible

entity

Regulation on emission from the workshop

Increasing competition between

shipbuilders

Efforts and costs responding to

Changed Ship Demand Pattern

• Regulation for Ship construction

- Introduction of EEDI for New ship

and Consideration of energy

efficiency from the stage of ship

design

• Increasing demand for green

(energy efficient) ship of

shipowners

Regulation for efficient ship

04 Impact on Shipbuilding(2)

From Ship Design to Ship Construction

7

Impact on Shipbuilding(3) 05

IMO Instruments(PSC) v.s Industry

IMO

Shipowner Shipbuilders

Industry

No More Favorable Treatment

Shipping Emission & IMO Policy

Summary of shipping emission in 2007 (m.ton)/IMO GHG Study 2009

GHG

Needed earlier enforceable implementation & Observation

06 Response from Shipbuilders(1)

8

Domestic Response

Current

Future

① R&D of environmental-friendly energy efficient ship (green ship) including marine equipment

② Introduction and Expansion of Energy Saving Building Process(Energy Facility)

③ Introduction of Efficient Energy Management System

(Monitoring System on Energy Consumption)

① Establishment of GHG Reduction Base and Medium & Long-term Reduction Measures(Industry & Company)

② Preparation of Mandatory Sharing of Emissions and Emissions Trading Scheme

07

9

Potential reduction of CO2 by using known technology and practice

Response from Shipbuilders(2)

International Response

Note : Only apply to new ship from 2013 in ship design/Source : IMO GHG study 2009

For design improvement and operation improvement, Shipbuilders & Shipowners together must make effort to reduce GHG emission(ex. increase of design capabilities, shipping optimization)

10

Response from Shipbuilders(3) 08

International Response – New Ship

International Response – Ship in Operation

① Strengthening R&D on environmental-friendly energy efficient(green ship) and marine equipment/production green ship

② Expansion of investment on Green Technology and its application to shipbuilding process

① Strengthening maintenance of ship(ship hull) to minimize frictional force in sailing

② Increasing maintenance of ship propulsion system for shipping efficiency

③ Use environmental-friendly fuel, not fissile fuel

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① Important items : How would you rank the following items When considering building new ships

For Reference

Response from Shipbuilders/Shipowner(1) 09

Industry Questionnaire ; Exploring industry needs QUANTUM – a container ship concept for the future(DNV, 2010.4)

12

10 Response from Shipbuilders/Shipowner(2)

. ② Alternative solutions : How would you consider the following alternative solutions for a new ship design ?

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13

Closing Remarks

Climate change issue emerging as the top priority resolution task for international society and respective countries, Green Growth is also an issue facing our shipbuilding industry, requiring technological alternatives reducing Green house gas emission.

Considering this, there is the need for all the global shipbuilding & shipping business communities to take an initiative and actively satisfy global regime. It is also necessary for OECD WP6 to cope actively this.

When considering that 90% of the world's total cargo movement volume are achieved by ships and there exist no border in marine pollutions, we also sufficiently sympathize with the intention to build Green ships and to operate ship efficiently including efficient building process in workshop. We hope activities and acts in IMO goes into effect early for Green Growth.

Pending Issue

Our Task

Future Direction

14