WTO Ministerial Section • Volume 8 • Number 18 • 17th October 2008

Global Marine Body Pushes Ahead with Emissions Curbs on Shipping

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Meeting from 6-10 October in London, the International Maritime Organisation (IMO) 58th session on the Marine Environment Protection Committee (MEPC) also adopted tough new sulphur oxide, nitrogen oxide and particulate matter targets and updated regulations for managing ballast water – seawater used by vessels to provide stability. The Committee further agreed on a new ship breaking treaty, which will be officially adopted at a special high-level conference in May next year, and then goes to ratification.

IMO taking the lead on carbon emissions from ships?

The MEPC is continuing to move ahead with discussions on how to tackle greenhouse gas emissions from ships. While some countries feel the IMO is the right forum to take on this work, others feel it should be handled within the UN Framework Convention on Climate Change (UNFCCC; see Bridges Biores, 18 April 2008).

Among the most complex issues within the negotiations, which was discussed at the MEPC, is the question of how to account for common but differentiated responsibilities among countries. This principle is deeply rooted within the UNFCCC context, where it is clear that those countries that bear the historical burden of climate change and have the means to pay for mitigation should take the lead, supporting developing countries in their mitigation and adaptation efforts. The IMO has traditionally taken a pragmatic approach, working closely with the regulated industries to get things done. In terms of regulating greenhouse gases, three quarters of ships carry ‘non-Annex I’, or developing country flags – often even if operated by developed country companies. In addition, the process of changing flags is relatively easy and frequent.

In addition to discussions on who should take on commitments, participants considered whether these should be voluntary or mandatory. They agreed on an Energy Efficiency Design Index for new ships and an energy efficiency operational index for existing ones; on an efficiency management plan suitable for ships; and on a voluntary code on best practice in energy efficient ship operations. These new measures will help operators cut energy use, and companies evaluate the greenhouse gas impacts of the shipping element of their operations.

Regarding the new Energy Efficiency Design Index, Lee Adamson, spokesperson for the IMO, said “It is an extremely complicated equation. But essentially it establishes an energy efficiency baseline for different types of ships and help designers work out how to improve the energy efficiency of their designs.”

The IMO will continue its work on curbing greenhouse gas emissions during an intersessional meeting in early 2009 and at the MEPC scheduled for July 2009. The results will feed into the UNFCCC Copenhagen conference in December of that year. According to some observers, the IMO is racing to come up with its own plan in order to avoid being regulated by the UNFCCC.

Following the MEPC meeting, some environmental groups felt too little progress had been made on curbing greenhouse gas emissions among the bickering around who should do what.

Tougher sulphur, nitrogen oxide controls

The MEPC adopted an amendment to the MARPOL Convention, which serves to prevent pollution at sea. MARPOL Annex VI Regulations for the Prevention of Air Pollution from Ships are being updated to require parties to gradually reduce sulphur dioxides in shipping fuels. In 2012, the allowed concentration will be at a 3.5 percent maximum, dropping to 0.5 percent in 2020. Fuels used in certain sensitive areas – usually around heavily populated ports –will be subject to even stricter limits.

These changes will enter into force on 1 July 2010. Noting the global scope of the new regulations, Janea Scott of the Environmental Defense Fund said “This newly adopted international regulation will ensure that all ships, both domestic and foreign, are held to the same rigorous emissions standards.”

Recycling convention set for adoption

A draft convention on the safe recycling of ships has been in the works within the MEPC – in close cooperation with the International Labour Organisation and the Basel Convention on Trans-boundary Movement of Hazardous Waste – since 2000. The issue has been controversial, since some developing countries with established scrapping facilities that provide sorely needed jobs and incomes have been hesitant to see too much regulation or the banning of these activities.

Ships often contain numerous hazardous materials, such as asbestos, heavy metals and hydrocarbons. Under the new convention, the recycling and scrapping practices will be clearly regulated. Ships set for recycling will have to carry inventories of hazardous materials, the new Convention provides guidance as to how to construct, operate and maintain ships to facilitate recycling at the end of its life. Certain hazardous substances will be banned in ship construction and servicing. In addition, ship recycling yards will have to have recycling plans in place, which can be verified by the authorities.

IMO Secretary-General Efthimios Mitropoulos commented that the new Convention represents “a major milestone in IMO’s quest to ensure that ships reaching the end of their operational lives do not pose any unnecessary risk to human health and safety and the environment.”

Background

The worldwide fleet of 90,000 ships transports 90 percent of the world’s goods. According to new IMO estimates, shipping contributes 2.7 percent of carbon dioxide emissions, up from a previous estimate of 1.8 percent. Shipping has grown by three percent annually on average over the last three decades, and shipping emissions are projected to grow as global trade expands. According to Intertanko, the global association of tanker owners, they are set to rise by a further 30 percent by 2020, and shipping will become one of the main sources of greenhouse gas emissions, following land transport, housing, agriculture and industry.

In the last couple of decades, the international community has taken steps to reduce emissions from other sectors, but the shipping industry has been left behind. The ships are mostly powered by large diesel engines using dirty ‘bunker’ or ‘residual’ fuel. Efficiency and environmental standards on shipping fuel have been largely ignored due to the distance between the ships and the externalities they create.

“Shipping starts to clean up its act,” ENERGY EFFICIENCY NEWS, 13 October 2008; “IMO Environmental Meeting Finalizes Draft of Ship Scrapping Program,” RECYCLING TODAY MAGAZINE, 13 October 2008; “New ships to get green performance gauge” BUSINESS GREEN, 14 October 2008; “Tough Global Limits Imposed on Air Pollution from Large Ships,” ENS, 13 October 2008; “Major progress on air pollution, ship recycling and ballast water management at IMO environment meeting,” IMO RELEASE, 13 October 2008.