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Tuesday, November 20, 2018

Good shipping industry story to tell on Greenhouse Gases

At the Cyprus Maritime Authority’s European Maritime Day event, INTERTANKO’s Research & Projects  Manager Erik Ranheim gave a presentation on GHG Emissions from Ships - A Industry’s Perspective. 


The industry has a good story to tell, he said, with increased trade needed to stimulate the economy and to alleviate the looming shortage of food.  However, increased trade normally means increased fuel consumption and therefore increased CO2 emissions. 


It is correct that shipping only represents 3% of emissions, that it is extremely fuel efficient and that engines are still improving even further. But shipping is still expected to contribute to reduce total emissions from its global activity. Ranheim stressed that shipping is working on a Ship Efficiency Management Plan to reduce emissions from the total fleet, and he added that by pooling information, shipping may achieve reasonable results, even if fuel reduction measures for existing ships often involve high investment for marginal results. 


He emphasised that INTERTANKO is talking to charterers and to OCIMF to adapt terms and conditions so as to achieve even more fuel efficient operations and logistics. He went on to say that the  shipping industry has provided input for the development of the practical design and operational indices that will be important to improving fuel efficiency for new and existing ships. He commented that one cannot manage what one cannot measure.


There are both scepticism and disagreement within shipping with regard to Market Based Instruments (MBIs) - both Emission Trading Schemes as well as a Compensation Fund.  He explained how INTERTANKO has set up robust principles for assessing an MBI. 


Commissioner for Maritime Affairs Joe Borg gave a presentation which concluded that if the IMO does not develop an MBI, then the EU will do so.


To view Ranheim’s presentation click here


Contact: Erik Ranheim