Input from Sweden on trends, developments and challenges for IMO s strategic framework

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1 1 (5) Date Reference Input from Sweden on trends, developments and challenges for IMO s strategic framework Sweden appreciates the opportunity to submit comments in relation to the development of a new strategic framework for the IMO. In the process of identifying trends, developments and challenges facing the maritime community in the period , consultations have been held with a number of Swedish authorities and organizations. Our ambition has been to present a concise material, and focus on a few areas. The overall topic The overarching challenge for the IMO is to be able to meet the various needs and expectations of its Member States in a timely and expedient manner. The Member States needs and expectations can vary considerably and the challenge lies in finding common solutions that are acceptable both to Member States that want to accelerate the work of the Organization, and to those who are in need of technical assistance. If the Organization does not manage to find acceptable global solutions, there is a risk that various regional or national solutions are developed, which may have a negative impact on international trade and the creation of a level playing field for the maritime community. In addition, it may create difficulties for effective implementation and enforcement in some regions. Furthermore, there is a strong need for the organization to have the ability to adequately respond to issues such as threats to the environment. Inability to address important issues will undermine the important function and role of the IMO as the prime regulator for global shipping in the long run. In addition, such a development would reduce the effectiveness and create uncertainty for the whole shipping industry. Swedish Transport Agency Civil Aviation and Maritime Department SE Norrköping, Sweden Office address Olai Kyrkogata 35, Norrköping Telephone luftfart@transportstyrelsen.se Telefax

2 Date Reference 2 (5) Trends and developments 1. It is envisaged that the automatization of ships will increase further. As a result, we will see a development with digitalization, further automatization on board, and other forms of communication (both between vessel shore and vessel vessel) which will require regulatory solutions as well as monitoring. Increased development in advanced technology is also envisaged to impact the training and expertise of crew, users and supervisory functions. As the crew may constitute of fewer members and the ship may be more automatized in the future, maintenance may perhaps no longer be performed during the operation of the ship. 2. Digitalization and the use of information technology will increase. Maritime informatics is one of the fastest growing branches in maritime science. Research on how information is shared, received and processed and how this can increase the efficiency, safety, and environmental sustainability of the world s shipping industry, is an important issue for the future maritime sector. New developments is also envisaged to increase the development of a new forms of sea traffic management which is expected to provide cost savings as well as environmental gains. 3. In addition to the developments in IT technology, new systems, materials and new solutions are being provided for the maritime industry, at a higher speed than before. Developments are thus faster, and technical developments are to a higher degree than before in advance of the rules and regulations. 4. Finally, the maritime space is being used far more intense than ever before. With a continued growth in maritime transport the shipping sector s contribution to climate change will increase. New and emerging maritime industries have seen the light of day during the last decades, such as wind power. Existing industries have grown extensively. With the development of new industries or the scale of existing ones, new forms of shipping services and activities are being developed to support the growing or emerging industries. With this development there is a need for the Organisation to be able to develop rules and regulations to ensure that these new maritime industries and the services provided do not fall behind in safety and environmental standards, while ensuring that services are being provided in an efficient way. Furthermore, it is important that the shipping sector contributes to limiting emissions from international transport in line with the recent agreement in Paris to hold the global warming well below 2 C and to pursue efforts to limit it to 1.5 C.

3 Date Reference 3 (5) Challenges Sweden identifies four key strategic areas; i) the development of a legal framework of goal-based standards, ii) the development of more advanced technology, iii) Better regulation, and iv) greening shipping. The following summarizes challenges and success factors in each area. i) The development of a legal framework of goal-based standards Within the transformation towards developing a legal framework of more goal-based standards lays an educational and cultural challenge. Member States and regional organizations are at different stages in their development process. IMO can play an important role in increasing knowledge and understanding. There is a need to change the monitoring methodology and the certificate holder is expected to assume greater responsibility of ensuring compliance. Successful implementation depends on our ability to better understand the consequences of this new approach in order to mitigate any uncertainties. In addition, coordination and dialogue regarding interpretations of standards is necessary. The regulatory framework is agreed internationally by the Member States in cooperation with the industry, but it is likely that the industry s responsibility to find solutions that meet the requirements of the legal framework will increase. A major challenge is to develop rules that are sufficiently clear. The framework also needs to be transparent, measurable and comparable. Continuous monitoring and analysis during the implementation phase is important to identify effects and learn from experiences. Initially, focus should be put on a few suitable, not too complex areas, to make the implementation successful. More complex areas should be included step by step ii) The development of more advanced technology The increased use of advanced technology is likely to require another type of competence and qualifications among users, e.g. seafarers, as well as in monitoring functions. In order to meet higher environmental standards, investment in new technology will be needed. To ensure that the industry invests in new technology, there should be incentives to do so. There is also a need to develop a mechanism ensuring that early movers are not penalised at a later stage, but rather rewarded. Taking the right steps should be profitable.

4 Date Reference 4 (5) iii) Better regulation IMO needs to critically examine and challenge the current regulatory framework. A clear vision is needed as well as recurrent assessment of the regulations. Otherwise, there is a risk that the simplification process has an opposite effect, resulting in more regulations, which would be contrary to the aim. To achieve this IMO may require external competence. Persistence is necessary. Adopted conventions must be ratified in a timely manner to achieve the goals for which the convention was developed. IMO needs to send clear signals to Member States that this is a wholehearted effort. In order for shipping to be competitive, the overall bureaucracy must be reduced. There is a need to analyse what is required for other transportation modes, with regard to, for example, permits and certificates, and to take action to reduce the burdens and to harmonize the requirements. iv) Greener shipping A major challenge is to reduce the environmental impact of shipping. It involves all areas of emissions; including emissions to air and water, waste handling, ballast water management etc. In order to ensure a successful transformation to a greener industry, effective and efficient implementation of new requirements is necessary. The industry needs to be given opportunities to plan ahead for necessary investments and changes. This can be facilitated by cooperation between Member States regarding ratification and implementation. IMO has an important role in coordinating with other international organizations and UN agencies to ensure that the common objectives are met. For example, the relevant goals of the United Nations Sustainable Development Goals should be incorporated in the strategic plan of the IMO. There is also a need to ensure a well-functioning cooperation on sustainable marine management including marine spatial planning. In this regard, cooperation with regional organisations can also play an important role, i.a. trough collective arrangements or joint actions. It is essential to analyze the environmental performance of ships in order to reduce the environmental impact of shipping. In this respect it is of great importance to have a system in place for monitoring, reporting and

5 Date Reference 5 (5) verification of emissions to enable transparency and comparability. The IMO could look to good examples and best practices when designing such a system. Likewise, measurability and visibility of the actions and achievements are success factors the environmental awareness of consumers is a driving parameter. An important factor for success is to find mechanisms to encourage technological development and the willingness to invest in green solutions. ***