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3,641,114
MILLION TONS OF CO₂E IN THE ATMOSPHERE IN 2009
Atmospheric concentrations of CO₂e are rising due to increasing anthropogenic emissions. Unchecked, rising concentrations of CO₂e in the atmosphere will lead to catastrophic climate change.
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6,682,199
THOUSAND TONS OF CO₂E EMISSIONS IN 2007
Public electricity and heating in Annex I countries accounted for over 6.68 billion tons of CO₂e emissions annually in 2007.
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4,626,841
THOUSAND TONS OF CO₂E IN 2007
Transport is responsible for approximately 20% of global anthropogenic emissions, or more than 4.63 billion tons of CO₂e annually. Source: UNFCCC, 2009.
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1,449,778
THOUSAND TONS OF CO₂E IN 2007
Buildings are responsible for an estimated 1.45 billion tons of CO₂e in Annex I nations and over 20% of global anthropogenic emissions annually. Source: UNFCCC, 2009.
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1,301,663
THOUSAND TONS OF CO₂E EMITTED ANNUALLY IN 2007
Annex I industry emissions are over 1.3 billion tons of CO₂e annually. Global industry emissions account for approximately 24% of annual anthropogenic emissions. Source: UNFCCC, 2009.
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1,304,628
THOUSAND TONS OF CO₂E IN 2007
Emisisons from agriculture in Annex I countries totaled more than 1.43 billion in 2007 CO₂e emissions.
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7,613,844
THOUSAND TONS OF CO₂E IN 2006 FROM INDIA AND CHINA
The EIA estimates that 2006 energy-related emissions from non-OECD countries accounted for approximately 30%, of global anthropogenic CO₂e emissions, or 15.4 billion tons. Source: EIA, 2009.
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1,000,000
THOUSAND TONS OF CO₂E EMISSIONS
Biochar could potentially remove over 1 billion tons of CO₂e annually. In general, carbon management solutions could remove billions of tons of CO₂e from the atmosphere annually.
Shipping
SITUATION
Problem Overview:
A lack of consumer visibility and the extraterritorial nature of shipping explain in part why the industry’s has lacked regulation on Greenhouse Gas emissions to date.
A lack of consumer visibility and the extraterritorial nature of shipping explain in part why the industry’s has lacked regulation on Greenhouse Gas emissions to date. Ships account for over 1 billion tons of CO2e annually, or around 3% of global anthropogenic emissions, in addition to being a major emitter of other pollutants such as SOx, NOx, Particulate Matter and Soot (that contains black carbon).
Moreover, shipping has a number of agency problems blocking demand for fuel-efficient technologies that are increasingly widely available:
• “The landlord and tenant scenario”: The shipowner or ship operator rarely pay for marine, or “bunker” fuel. Rather bills are picked up by the customers (charterer) meaning few incentives to owner / operators to improve efficiency
• Shipyards: The majority of shipyards, located mainly in Asia, build to standard type and charge a prohibitive premium to owner / operators for new technologies and vessel designs
• Charter party agreement: In some cases as old as 150 years, charter party agreements are outdated and focus on cost, speeds, age and tonnage – not eco-efficiency and fuel burn over a vessel’s lifespan or charter-span
• Indexing and Rating: To encourage educated decisions, shippers, ports and other stakeholders such as insurers need access open and transparent environmental performance ratings
• Information flows: According to the International Maritime Organisation (IMO), the UN body that governs shipping, the industry has an opportunity to make money reducing the first 250 million tons of its CO2e; but how many companies in and connected to the industry know this?
The shipping industry is the largest emitter of NOx and is 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. According to the IMO, CO2e emissions from ships will reach 18% of all manmade Greenhouse gas emissions by 2050 under “business as usual”.
Moreover, despite some regulation for the reduction of SOx and NOx, shipping pollution poses serious human and environmental health risks, providing additional motivation to reduce emissions. Particulate Matter 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 IMO GHG Study 2009 estimates that eco-efficiency technologies could reduce CO2e emissions from shipping by between 25% and 75%. Of those emission reductions, the first approximate 25% of reductions could be achieved, according to the study, “profitability”.
OBJECTIVE
Solution Overview:
Currently available technologies can substantially reduce CO2e. Efficiency gains could translate into an annual CO2e reduction of upwards of 250 million tons annually consumption by 2020.
Currently available technologies can substantially reduce CO2e. Efficiency gains could translate into an annual CO2e reduction of upwards of 250 million tons annually consumption by 2020. Of the 100,000 vessels that spend most of their time traversing the world’s oceans, making only occasional stops at port cities, about 15,000 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.
Future technology developments – including fuel alternatives to the heavy sulphurous bunker fuel currently burned by ships to LNG or biofuels – could eventually 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
There is significant potential for improved and increased information flow of what constitutes an efficient ship from a less efficient one; and an efficiently run ship from a less well-run ship. Carbon War Room is committed to increasing this information flow to enable the key stakeholders to make better decisions and to facilitate investment in technology and operational improvement that saves money and CO2.
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.
The adoption of scrubbers will require additional pressure from customers or regulation, as there is currently no economic incentive for their addition.
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