The case for CO2, cost and commercial value A. P. Møller-Mærsk

John Kornerup Bang, Lead Advisor Environment & Climate Change

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A.P. Moller-Maersk: A diversified conglomerate founded in 1904

Container shipping (240/530 ships)

Tankers (125/250 ships)

Offshore supply services (65 ships)

Drilling

Oil and gas activities

Terminals

Retail, logistics and other activities

November 27, 2012 2

110,000 employees and operations

in over 130 countries

Headquarters in Copenhagen

Business segments:

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Maersk is actively supporting the

further development of global

regulation of CO2 emissions from shipping

Flag neutral

IMO to lead

Strong enforcement

It’s in shipping’s best interest:

Good business case now

Need for improved resilience

Need for shipping to position itself as

relevant solution sector for low carbon

globalization.

We need global regulation of CO2 emissions from shipping

Slide no. 3

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Things used to be simple…

Fuel costs used to be low and

predictable

Environmental regulation for shipping

used to be limited and manageable

CO2 emissions used to be a

non-issue for shipping

‘One size fits all’ used to be the

paradigm for marine fuels.

Shipping used to be off the radar

screen (as long as we avoided big oil

spills)

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0

50

100

150

200

250

300

350

400

450

500

550

600

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

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What is the reality today?

Complex:

Regulation is becoming more complex and fragmented

Customer requirements are diversifying

Expensive:

Fuel prices are volatile and increasing

Investment in new technologies

Uncertain:

Global SOx cap in 2020 – will it happen?

CO2 regulation for shipping? Levy, ETS, or not?

Rotterdam 3.5% Barges

USD/ton

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Where will we be in 2020?– more not less complexity, costs, uncertainty

Will we not return to the ‘good old times’ of simplicity and low cost

We should shape our future and ensure shipping remains a relevant

solution sector

Maersk Line

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Fuel efficiency and Co2 reductions

goes hand in hand

Fuel is approx 30% of Maersk Line’s

cost base

Target 25% reduction in relative

CO2 2007-2020

Reduced 16% Co2 from 2007 – 2011

Help improved on time delivery

Early signs it will help boost revenue

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A strong business case works with us

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Need for more transparency in the market

Slide no. 8 Maersk Line

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Hvad er container shipping?

What is container shipping?

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A key partner in globalization

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8

18

21

47

560

Ocean

Rail Electric

Rail Diesel

Truck

AirAir (Boeing 747-400)

Truck (Global average)

Rail Diesel

Rail Electric (Global average)

Ocean (Avg. ML vessels)

CO2 (g/ton km)

What’s the optimal transportation system?

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In conclusion

• Co2 regulation of the shipping sector must be done by

IMO, be flag neutral and strictly enforced

• Co2 reductions are of key interest to the shipping sector

because it

- saves money

- creates resilence

- Gives license to position shipping as solution

sector

Slide no. 12 Group Sustainability

Thank you