Emissions Position

Due to the significant role that shipping plays in the global economy, it accounts for between 2.7% and 4.5% of the worlds CO² emissions and because of this it is under increasing political pressure to demonstrate a commitment to reducing its environmental impact.

Emissions from the industry have doubled since 1990 and are projected to increase by over 50% by 2020 due to the growth in world seaborne trade.

What has been done already?
The IMO has been developing pollution control measures for some time, resulting in measures to ban greenhouse gas and other ozone-depleting gases from refrigerators and fire-fighting systems and achieve a reduction in NOx and SOx emissions.

However, environmental issues are high on local, national and international political agendas and the industry is under pressure to make wider reductions in a shorter period.

International climate change negotiations have resulted in an agreement that sets emission reduction targets for developed countries. These require emissions to be reduced to 40% below 1990 levels by 2002 and 80% below 1990 levels by 2050. The shipping industry is therefore facing demands to cut its contribution by similar levels and the IMO is under pressure to put agreements in place quickly or face EU or UN intervention. This will see shipping unilaterally included in either the EU Emissions Trading Scheme or the UN Framework Convention on Climate Change with no further recourse to the industry.

The IMO is keen to retain ownership of the issue and has proposed a number of measures to achieve a reduction including:

MEPC
The IMO’s maritime environment protection committee (MEPC) is trying to implement a number of environmental policies including the recycling of ships; prevention of air pollution from ships and the reduction of greenhouse gas (GHG) emissions from ships. Policies include regulations to make it mandatory for new ships to be built in line with an energy efficiency index and ‘market-based measures’ - such as a bunker levy or a ‘cap and trade’ scheme.

These proposals have run into problems mainly around the way in which policies will be applied internationally. Developing nations have blocked some proposals and the MEPC is looking at ways in which funding and infrastructure investment can be given to nations who could not meet the costs of the proposals.

The IMO believes that advances have been made, despite the set-backs and it expects to finalise proposals for regulation in July this year.

Market based measures (MBMs)
Proposals which include levies, rebates and trading schemes have received a lot of support from the industry but there are concerns about the lack of details on implementation and regulation. This system could allow richer flag states or shipping companies to simply ‘buy’ their way out of taking real action to reduce emissions.

Energy Efficiency Design Index (EEDI), Ship Energy Efficiency Management Plan (SEEMP)
The EEDI is the development of a CO² index, which indicates the CO² output of a merchant ship to a set formula which is currently being finalised by the IMO.

The SEEMP uses best practices to encourage the use of fuel efficient operations, such as better speed management throughout a ships voyage, with the aim of reducing fuel consumption and, consequently, CO² emissions.

These proposals are also being held up due to issues around mandatory introduction and funding to support implementation.

Other measures
‘Slow steaming’ has been adopted by many shipping companies to reduce fuel consumption, mainly in response to the global economic downturn, but this has had the coincidental affect of reducing emissions. However, there are concerns about adopting this system on existing vessels where there may be a less complete combustion or increased engine deposits.

There have also been problems reported when ships have changed fuel specifications and the ships have subsequently lost power and suffered engine damage due to the low sulphur fuel.

Nautilus is asking members ‘Are these proposals good enough?’
The Union is concerned about the growing international pressure for shipping to improve its environmental credentials and the possible impact if measures are put in place without special consideration of industry needs.

There are also health and safety concerns affecting members. The risks of exposure to sulphur and soot emissions are increased for seafarers due to the low quality oil used for heavy fuel. Exposure to these pollutants has been linked to lung cancer, and respiratory problems.

We will be consulting members on the following areas before determining a policy for the future reduction of the environmental impact of shipping:

• the best ways to achieve environmental targets, whilst protecting the jobs and health and safety of members
• whether policies and targets should be regulated by the IMO; UN or EU
• if environmental targets should be achieved by regulating emissions or via development of, for example, new engine technologies and the use of cleaner fuel
• should Nautilus support the principles of market based measures such as the trading of emissions credits or carbon credits
• whether the proposals already suggested by the IMO are practical and achievable with existing crew and technologies
• should measures be different according to the flag of the vessel i.e. to avoid the flag of convenience system gaining an advantage