COP 18 IMO SIDE EVENT Simon Bennett, Director External Relations International Chamber of Shipping (ICS) Doha 27 November 2012
90% of World Trade
International Chamber of Shipping Ü Principal international trade association for shipowners Ü 80% of world fleet Ü Members are national shipowners’ associations Ü Represents shipowners at IMO
Global Rules for a Global Industry IMO in session in London
Need to Reconcile CBDR with IMO Global Rules Ü Only 35% of fleet is registered with ‘Annex I’ nations Ü Danger of ‘carbon leakage’ Ü Ships flexible about flag of choice
Improving CO 2 Efficiency
Shipping is Servant of World Trade 35000 30000 Billion ¡tonne ¡miles 25000 Growth ¡in ¡world ¡seaborne ¡trade ¡ 20000 Source: ¡Fearnleys 15000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 est.
IMO Agreement Addresses CBDR Ü Includes regulation on technology transfer and technical co-operation with developing nations Ü Flag State waiver on immediate application of EEDI (but most shipowners will not use)
Market Based Measures (MBMs)
MBMs are Controversial Ü High fuel cost already provides efficiency incentive Ü Danger of modal shift to less CO 2 efficient modes of transport
Shipping is not a Cash Cow
But Shipping Must Play its Part in Development of MBMs
MBM Proposals Using EEDI to reward or penalise 1. ships Emissions Trading Schemes 2. Compensation Fund Linked to 3. Fuel Consumption
Shipowners’ Preference IMO Compensation Fund Linked to Fuel Consumption
Addressing CBDR … . Ü If governments decided, industry would support funds being directed to help climate change projects in developing nations Ü If governments decided, possible linkage to UNFCCC ‘Green Fund’
Report on Climate Finance Ü Welcome of acknowledgment of IMO progress, and ‘fuel levy’ as an MBM option Ü High level UNFCCC / IMO / ICAO Working Group worth exploring
Link to UNFCCC Green Fund? Ü But shipping’s contribution must reflect share of world emissions Ü Governments must not keep money for themselves Ü Must not become a tax on trade
Conclusions Ü Significant emission reductions more likely if agreed by IMO on global basis Ü If IMO not permitted to develop MBMS, danger of regional/unilateral action Ü UNFCCC/IMO Group on shipping finance should be considered by governments
Shipping is Life Blood of World Trade Thank you For more information: www.ics-shipping.org www.shippingandco2.org
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