Speed Matters: Time for an Accelerated Effort on Fuel Savings and Greenhouse Gas Reduction

Commentary from Skip Vaccarello, AWT CEO


Skip Vacarello

The implementation of a plan for the shipping industry to reduce greenhouse gases faces a number of challenges which were reflected in the animated talks at Copenhagen. These challenges include setting emission targets for shipping, design standards for new vessels, approved operational measures, market and non-market systems to implement targets, and the need for investment in clean-ship technology.

There is no need to wait for the world community to act on overall emission targets before resolving some of these fundamentals. Det Norske Veritas, an audit and risk assessment firm, recently concluded that using current technology alone, shipping could realize a 30 percent decrease in greenhouse gas emissions by 2030.

This is encouraging and deserves close consideration. It only makes sense that a strategy for shipping focuses on proven and cost-effective technology that can realize an immediate gain. Such an approach would have the added benefit of encouraging investment in new technology that is also efficient.

In accelerating current timetables, the IMO and the UNFCC should also make sure that other transport sectors reply in kind with concerted action. In the coming year, close coordination should be developed between shipping, aviation, rail and trucking. This would prevent modal shifts that create imbalance and undermine world trade.

It is important that the IMO move forward in promoting ship and fleet fuel- efficiency plans. The plans could be mandated or voluntary. Either way, they would specify in an operational manner, much like ship-safety plans, what each vessel would do to reduce fuel consumption.

One of the measures that should be recognized as indispensable in such plans is optimized routing. Not only is routing relatively inexpensive compared to other measures, it promises immediate fuel and greenhouse gas savings for individual ships. Additional savings will come from efficiency at the fleet level, achieved through logistics and scheduling.

It makes sense to designate the IMO as the organization to administer a system for shipping. The IMO possesses the best capabilities to move effectively on greenhouse gas reduction for shipping. Meeting UNFCCC targets when they do arrive will require unprecedented cooperation by ports, private shipping companies and nation states. The IMO is in the best position to orchestrate this.

Time is of the essence, however. Only by reducing the time frame for studies, standard-setting and regulations is it possible to rise to the challenge of reducing greenhouse gas emissions so that widespread environmental effects are avoided.

It is encouraging that the Bunkers Group made progress in Copenhagen on the issue of responsibility and "No More Favorable Treatment." An agreement on this would eliminate a major stumbling block for any regulatory scheme. It would also enable shipping representatives to expedite consideration of standards and market based instruments (MBI's). It remains to be seen, however, if NMFT is fully endorsed by all.

At AWT we plan to play an even more prominent role in helping the industry realize the imperative of saving our valuable resources. We look forward to building dialogue on this with all our clients.



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