Sustainable Seaborne Transport —Our Common Challenge

Shipping Emissions —What are the next steps?

Peter M. SwiftManaging Director, INTERTANKO

INTERTANKO

290+ members operating ca. 3050 ships > 80% of independent oil tanker fleet and > 85% of chemical carrier fleet - strict membership requirements, including adoption of best practice policies

350+ associate members - in oil and chemical tanker related businesses

One of the Association’s Primary Goals:Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of:

Zero fatalities, Zero pollution, Zero detentions

INTERTANKO – Finger on the pulse

Offices in London, Oslo, Washington, DC, Singapore, Brussels and Manila

Members in 45 countriesAssociate members in a further 20+ countries- providing first-hand and immediate feedback

5 Regional Panels – covering all continents

Observer Status at IMO, IOPC, OECD and UNCTAD

Shipping Emissions —What are the next steps?

• Exhaust Gas Emissions – successfully addressed through revision to IMO MARPOL Annex VI (SOx, NOx and VOCs)

• Green House Gas Emissions – underway at IMO and through industry measures

Relative Energy Efficiency of Ships

Source: INTERTANKO/Maersk GroupSource: INTERTANKO/Maersk Group

kmkm

Container Ship6,600 TEU

Train -Diesel

Truck

Boeing 747 - 400

0 40 80 120 160 200 240 280 320 360

Kilometres travelled by 1 tonne of cargo using 1 litre of fuel

Shipping’s GREEN Credentials

• This car, weighing one tonne, uses 1 litre of fuel to move 20 kms

• This (VLCC) oil tanker uses 1 litre of fuel to move one tonne of cargo 2,500 kms– more than twice as far as 20 years ago

Performance Rating for Ships

Ship Performance Index: CO2 / work done

IMO developing:For New Ships : Design Index

For Ships in Service : Operational Index

and Best practice guidance on measures to reduce CO2 emissions

Example of Industry application of Performance Index

Application of Design Index:

• Establishment of a Reference Value for a New Ship (i.e. a Target)

• Development of a Rating System relative to the Reference Value

Similar to the performance rating of white goods

IMO reviewing economic measures to reduce CO2 emissions

• Bunker Levy• Emissions Trading Scheme• Other, e.g. differentiated charges

Guiding principles: any measure should:• Be effective in reducing global GHG emissions• Be binding on and applicable to all flag states• Be cost effective• Not (significantly) distort competition• Support sustainable environmental development without

penalising trade growth• Promote technical innovation and leading technologies• Be practical, transparent, fraud-free, easy to administer

Shipping’s Economic Driver- and biggest challenge ?

Source: IEA/ClarksonSource: IEA/Clarkson

€ per litre US$ per tonne

Increase in gasoline price, 2008/2004: 40%Increase in bunker price, 2008/2004: > 400%

Bunker price Rotterdam $ per tonneBunker price Rotterdam $ per tonne

0.0

0.3

0.6

1.0

1.3

1.619

94

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Jul-0

8

0

140

280

420

560

700

Gasoline price Germany € per litre

Gasoline price at the pump in GermanyBunker price Rotterdam

Sustainable Seaborne Transport – Our Common Challenge

Global seaborne trade in million tonne miles

Crude oil

Oil productsIron ore

CoalGrain

Oth. Cargo est.

0

5000

10000

15000

20000

25000

30000

350001968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Year

Mill

ion

tonn

e m

iles

Industry Commitment

The Shipping Industry is committed to playing its part in finding solutions to reduce

greenhouse gas emissions.

Industry:• Taking a pro-active approach to reductions in CO2

emissions• Encouraging innovation to improve performance• Continues to support global trade• Encourages modal shift to shipping to reduce overall

emissions

Thank you For more information, please visit:

www.intertanko.com www.poseidonchallenge.com

www.shippingfacts.comwww.maritimefoundation.com