SITUATION
Lack of visibility and lack of sovereignty explain in part why the shipping industry’s destructive pollution has escaped regulation to date. Ships account for an estimated 1.3 billion tons of CO2e annually, or close to 3% of global anthropogenic emissions, in addition to emitting black carbon soot, a leading cause of Arctic ice melt, and NOX and SOX.
Lack of visibility and lack of sovereignty explain in part why the shipping industry’s destructive pollution has escaped regulation to date. Ships account for an estimated 1.3 billion tons of CO2e annually, or close to 3% of global anthropogenic emissions, in addition to emitting black carbon soot, a leading cause of Arctic ice melt, and NOX and SOX. The shipping industry is the largest emitter of NOX and, producing an equivalent amount to 800 million cars annually, and also one of the largest emitter of SOX. Under business-as-usual, harmful emissions from this sector will continue to rise as demand for freight increases. Emissions of CO2e are contributing to rising atmospheric concentrations of CO2e that lead to catastrophic climate change.
Shipping pollution poses serious human and environmental health risks, providing additional motivation to reduce emissions. Emissions of NOX and SOX exacerbate asthma, cause acid rain, and contribute to global warming. These emissions are regulated in other sectors. Particulate emissions from ships contribute to an estimated 60,000 premature deaths annually, as reported in a 2007 study by Corbett, et al., published in Environmental Science & Technology. Reducing emissions is technically feasible using current technology, and, in the case of efficiency measures to reduce fuel consumption, can contribute cost savings that make it economically attractive with appropriate financing of upfront costs.
The characterization of shipping emissions as a “port problem” has made it difficult to politicize the issue at the national and international level; however, that characterization stands contrary to science. The emissions are having a global environmental and health impact far beyond port cities.
OBJECTIVE
Currently available technologies can substantially reduce CO2e emissions and eliminate black carbon soot release. The International Maritime Organization (IMO) and the reputable ship-rating agency DNV have identified latent efficiency gains of up to 70% that would reduce fuel use and associated emissions.
Currently available technologies can substantially reduce CO2e emissions and eliminate black carbon soot release. The International Maritime Organization (IMO) and the reputable ship-rating agency DNV have identified latent efficiency gains of up to 70% that would reduce fuel use and associated emissions. These efficiency gains could translate into an annual CO2e reduction of upwards of 500 million tons annually consumption. Of the 100,000 vessels that spend most of their time traversing the world’s oceans, making only occasional stops at port cities, about 20,000 are responsible for the bulk of emissions and are initial targets for efficiency and scrubbers. The installation of scrubbers - common in aviation and automotives – could substantially reduce black carbon soot and reduce NOX and SOX (two potent greenhouse gases).
Future technology developments – including fuel alternatives to the heavy sulfurous bunker fuel currently burned by ships – could contribute even greater emissions reductions and present a market-based solution driven by reduced fuel costs. Alternative fuels are currently in the development phase and present another business opportunity.
Free-Enterprise Approaches
New business models that deliver attractive financing for energy-efficiency for ships can catalyze the market for these technologies. With attractive financing, the efficiency upgrades may be of considerable appeal given the estimates of a short payback period (three years or less) for reduced fuel costs. Information is missing from the marketplace regarding the potential for some of these technologies and, in some cases, design examples are still need. New business models could leverage consumers, who typically pay the fuel costs, to insist on more efficient shop models. Efficiency ratings would facilitate market function by providing important information, essentially creating transparency that would allow consumers to select more efficient ships and allow ports to potentially set standards around efficiency and pollution. The adoption of scrubbers will require additional pressure from customers or regulation, as there is no economic incentive for their addition.
CURRENT SHIPS ARE MAJOR POLLUTERS
Current ships emit large quantities of SOx and NOx, particulate matter, and CO2e that are damaging to the environment and human health and contributing to...
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FUTURE SHIPS COULD BE MUCH CLEANER
The IMO has reported estimates of up to 70% latent efficiency in the shipping industry that could reduce fuel use and curtail fuel-related CO2e emissions.
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SHIPPING EMISSIONS ARE RISING
Projected emissions up to 2050 under four different technology scenarios that vary the sulfur content of ship fuels show a strong increasing trend, with the steepest increase between 2010 and 2030.
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Source: IPCC, 2007
TRANSPORT EMISSIONS ARE RISING
Under business-as-usual, transport emissions continue to increase dramatically and are a major contributor to rising CO2e levels that lead to catastrophic climate change.
Read more > Source: IPCC, 2007
SHIPS ARE IMPORTANT TO ECONOMIC GROWTH
Global freight industry is projected to play a key role in global growth as the major transport mode for international freight.
Read more > Source: LLoyd's Registry of Shipping, 2000
TRANSPORT ENERGY USE IS RISING
Reliance on petroleum, which supplies approximately 95% of transport energy, is driving CO2e emissions growth in the transport sector at a dangerous rate.
Read more > Source: IPCC, 2007
PORTS HAVE SIGNIFICANT CONTROL OVER SHIPS
The Port of Long Beach is one port to implement emissions controls, requiring ships to slow down when approaching the port to reduce fuel consumption and associated emissions.
The Port of Long Beach is one port to implement emissions controls, requiring ships to slow down when approaching the port to reduce fuel consumption and associated emissions.
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INDUSTRY EMISSIONS ARE ABOVE GERMANY
Emissions from the shipping industry are greater than those of the entire country of Germany.
Read more > Source: IMO, 2009
INTELLIGENCE
REPORTS
Arctic Council, 2009
International Chamber of Shipping, 2009
IMO, 2009
IMO, 2009
PUBLICATIONS
