Despite some progress, a lack of a definitive outcome puts significant pressure on MEPC 70 in October, 2016 and increases the threat of reduction targets being taken out of the shipping industry’s hands.
This was the view of the Sustainable Shipping Initiative (SSI), a coalition of companies from across the global shipping industry, which believed that MEPC 69 failed to achieve the required minimum outcome.
Before MEPC 69, the SSI, plus many other member states and industry bodies, called for an agreement on a process that would lead to the setting of an ambitious but realistic framework, that would see the shipping industry contribute to reducing its greenhouse gas (GHG) emissions in line with the targets agreed at the UNFCCC COP 21 meeting in Paris last year.
While the issue of GHG emissions reduction will continue at MEPC 70, the SSI believed that the lack of action increases the perception of shipping as an industry that is not willing to contribute to global reduction targets. This threatens the shipping industry’s reputation, and increases the chance of reduction targets being mandated outside of the regulatory framework of the IMO, the SSI said.
Alastair Fischbacher, SSI CEO, said: “While some progress has been made, the failure to agree a process for emissions reduction puts significant pressure on generating a positive outcome at MEPC 70 in October. The shipping industry cannot go to COP 22 in Morocco without this. Not only will it damage the industry’s reputation, it also runs the risk of external regulators taking the matter into their own hands and circumnavigating the IMO, which no-one in the industry wants to see.”
Galen Hon, manager of Carbon War Room’s Shipping Efficiency operation, commented:
“On Earth Day, world leaders gathered to sign the Paris Climate Change Agreement and signalled a momentous step forward in the world coming together to tackle climate change. On the same day, MEPC 69 closed with a glimpse of the path the organisation will take towards a similar agreement for the maritime industry.
“During contentious discussions about when, not if, the IMO should consider firm GHG reduction targets, a familiar rift appeared. The majority of the country and industry delegations formed a clear and impassioned case for swift action while a few indicated an intent to draw out or even filibuster the process. In the context of a world newly unified under the COP21 agreement, the arguments of the minority were distinctly out of step with the stated aims of the IMO and the industry it represents.
“Leading charterers representing a fifth of all shipped tonnage now avoid the least efficient ships by using the GHG Emissions Rating in their chartering policies. Other charters and shipowners are teaming up to share the benefits of efficiency retrofits so that both parties can profit, making their ships more efficient and paving the way for similar projects in the future. And, through proven operational results and rigorous data analysis and verification, we are starting to see commercial traction build for cutting-edge technology solutions like Norsepower’s Flettner rotors and Silverstream’s air lubrication system,” he said.
Elsewhere, the ICS welcomed what it thought was the progress made towards the adoption of a global CO2 data collection system.
Once the amendment to the MARPOL Convention enters in force, all ships over 5,000 GT will be required to provide information on CO2 emissions via their flag states.
ICS said that once the system is adopted, IMO member states will be in a better position to consider the development of additional CO2 reduction measures and respond to the Paris Agreement.
“Most of the details have been agreed, including the important fact that CO2 reporting will be mandatory. We are confident that the IMO system will be fully adopted at the next MEPC meeting in October” said ICS secretary general, Peter Hinchliffe. “We believe that IMO member states have agreed an acceptable compromise between governments primarily interested in data on fuel consumption and CO2 and those that wish to collect additional information, for example on so called transport work.”
He added “The priority now is to persuade the European Union to adjust its unilateral regulation on the reporting and verification of individual ship emissions to make it compatible with what has now been agreed at IMO. While this may be an uphill struggle, we have been encouraged by the constructive attitude taken by EU member states, as well as those other nations that initially had concerns about the decision to make the IMO system mandatory.”
The IMO said that the mandatory requirements for ships to record and report data on their fuel consumption together with additional data on proxies for the ‘transport work’ undertaken by the ship is to be the first step in a three-step process in which analysis of the data collected would provide the basis for an objective, transparent and inclusive policy debate in the MEPC.
This would allow a decision to be made on whether any further measures are needed to enhance energy efficiency and address emissions. If so, proposed policy options would then be considered.
Last week’s MEPC meeting also adopted amendments to MARPOL and the NOx Technical Code 2008, with expected entry into force on 1st September 2017:
· Amendments to MARPOL Annex II, appendix I, related to the revised GESAMP hazard evaluation procedure.
· Amendments to MARPOL Annex VI regarding record requirements for operational compliance with NOX Tier III emission control areas.
· Amendments to the NOx Technical Code 2008 to facilitate the testing of gas-fuelled engines and dual fuel engines.
The MEPC confirmed that the BWM Convention, 2004, is very close to reaching its entry into force criteria. To date, 49 states with an aggregate of 34.79% of the world’s merchant fleet tonnage have acceded to the convention.
MEPC approved draft amendments to regulation B-3 of the Convention relating to the time scale for implementation of the requirements, to be held in abeyance and circulated on entry into force of the BWM Convention for subsequent adoption.
The Committee granted Final Approval to three further ballast water management systems that make use of active substances bringing the number of type-approved systems to 65.
Meanwhile, the correspondence group on the review of the guidelines for approval of ballast water management systems (G8) was re-established to continue its work.
The report of a correspondence group established to consider possible quality-control measures prior to fuel oil being delivered to a ship was also at the MEPC. Following discussion, the committee encouraged the fuel oil supply industry to develop draft best practice for fuel oil providers and submit this best practice to the committee for consideration at a future session.
The committee also agreed that best practice for fuel oil purchasers/users and member states/coastal states should be developed and instructed the correspondence group to continue its work on this guidance.
Perhaps of greater importance, MEPC agreed in principle to take a decision on the implementation date for the global 0.50% m/m sulphur cap for fuel oil at MEPC 70, based on the outcome of a review, which is due to be submitted to that session.
The MARPOL regulation limiting sulphur oxide emissions from ships provides for a 0.50% global cap to be implemented on 1st January, 2020, but also requires a review of the availability of the required fuel oil to be carried out and concluded by 2018. Depending on the outcome of the review, the implementation date could be deferred to 1st January, 2025.
A steering committee consisting of 13 member states, one intergovernmental organisation and six international non-governmental organisations, is overseeing the review.