FRAM project description

Transcription

1 FRAM project December 2012 TCS TCS00130 FRAM project description Presentation of the FRAM initiative The purpose of this document is to inform interested parties about an initiative to start voluntary reporting of CO 2 emissions from the Norwegian shipping fleet. The main goal is to establish a framework for the measuring and monitoring of CO 2 emissions from the Norwegian owned, controlled or managed fleet. Additionally, use the framework as a basis for voluntary, corporate specific targets to improve energy efficiency among project participants. Background: On the basis of the 90% share of the global continental transport work, there is a joint understanding that pollution and emissions from international shipping need to be reduced. In order to understand the magnitude of CO 2 emissions specifically, the partners in the FRAM project have the view that a monitoring, reporting and verification (MRV) system for these emissions, in line with the EU proposal, would be a useful first step. The partners anticipate further future CO 2 regulations in the shape of a market based instrument (MBI) and consider data from a MRV system as valuable input from industry to the final choice of a global MBI for CO 2 emissions. A proactive approach through the FRAM project is chosen to meet the increasing demands from society, customers, banks, insurance companies and investors on delivering lower-emission transport services in a manner which corresponds to the ambitious zero emissions vision set out for Norwegian maritime industry. The Norwegian government has endorsed a vision clearly addressing the industry, also Norwegian owned and registered ships, to exercise the highest possible environmental responsibility. As a means, the Ministry of Trade and Commerce has launched Maritim21 - a key initiative containing incentives to recommended research and development activities. The FRAM project is clearly designed in line with Maritim21 with its focus on understanding the CO 2 emission profiles in the Norwegian controlled fleet and the intended focus on improving energy efficiency through exchange of experience. From 2013, two IMO instruments, the Energy Efficiency Design Index (EEDI) and Ship Energy Efficiency Management Plan (SEEMP), will enter into force. A global MBI is expected to follow setting a cap and price on ships CO 2 emissions. The efforts and experiences made by industry through the FRAM project, in particular the technical implementation of the voluntary MRV system, will fit in with the ongoing MBI negotiations in the IMO and EU and make FRAM a relevant and competent subscriber to this discussion.

2 2 The project: The FRAM project is established by a coalition of partners who are committed to work for an environmentally friendly shipping industry and they all share the zero-vision expressed from the Norwegian Shipowners Association of no harmful emissions to air and sea. These partners include World Wildlife Fund (WWF), DnV and members of the Working Group on Environmentally Friendly Shipping (WG5), represented by; Torvald Klaveness, Wilh.Wilhelmsen ASA, Solvang ASA, BW Gas and Grieg Star. FRAM is facilitated by the Norwegian Shipowners Association (NSA). As environmentalist, WWF holds a key role in the project dedicated to advocate responsibility and high ambitions in environmental matters for international shipping in general, and emission reductions in particular. DnV, in the capacity of classification society, is responsible for guidelines and contents related to the MRV system. The data into the MRV system will initially be reported from vessels in the WG5 fleet. The data collection will be the responsibility of NSA. The data will be managed and safeguarded so that fleet segments trends will be made anonymous as for all types of publicly available data for public disclosure. The first phase of FRAM will be concluded by the end of However, the FRAM system will be maintained and intended to be in operations in the foreseeable future, allowing overall fleet segment and industry sector emission trend profiles to be disclosed after Main Goal of FRAM: The main goal of FRAM is to establish a framework for the monitoring and reporting of CO 2 emissions from the Norwegian controlled, owned and managed fleet and use this framework as a bank of knowledge to gain voluntary, corporate specific targets for energy efficiency 1. Main deliverables: The FRAM project will include two main deliverables to the benefit of the environment, the individual companies, the industry as a whole and its stakeholders. Through collective efforts the project will: 1) Establish a common monitoring and reporting framework for measurement and verification of CO 2 emissions from the Norwegian owned and operated fleet. 2) All participants to define company specific energy efficiency and emission reduction targets to be realized by Energy efficiency is defined in its widest terms, considering all possible technical, operational and technological measures that improves the energy performance and lowers the GHG emission of a ship. It will also include paradigm shifts such as switching to lower emission fuels.

3 3 Monitoring, Reporting and Verification system (MRV): a. Scope The MRV system will establish a framework mainly for the monitoring and reporting, but also into the difficult exercise of verifying CO 2 emissions on the basis of fuel consumption measurements from individual ships. This entails developing common guidelines to be used by all participants with respect to fuel consumption measurement and calculation of emissions thereof and standards for emission verification and reporting. As the FRAM project want data and reports to be open and publicly available for the benefit of the maritime industry sector and the society at large, three main indicators will be used in the project (will be reported with relevant indicators (e.g. speed/fleet size)): CO 2 /Transport work CO 2 emissions / nautical-miles sailed Absolute CO 2 emissions per ship per year or six months Indicators suitable for segments other than deep and short-sea shipping will be identified as appropriate b. Benchmarking Benchmarking is core in the FRAM project reasoning that submitted data will be used twofold: anonymous emission data will be aggregated into ship segment and overall emission trends and will be publicly available. All participating companies will have exclusive access to their own emission profiles and are allowed to benchmark their performance up against the average ship segment performance. This particular project functionality can on request be delivered from the MRV system as it will be able to display segment emission trends and enable companies to track own progress towards a fixed cap or against the visions set out for the industry as a whole. c. Guidelines and infrastructure The MRV system will consist of two main elements. The first element is the guidelines to harmonize processes in order to ensure consistency and reliability in the system. The following guidelines will be developed: Guidelines for fuel consumption measurement (will be developed with a three tier system capturing those with limited experience in measurement and those deemed mature in this respects) Guidelines for CO 2 emission calculation (FRAM will adopt IMO guidelines for conventional bunker fuel and develop guidelines for LNG and LPG). Guidelines for CO 2 emission verification (will be based on ISO 14064) Guidelines for CO 2 emission reporting (will incorporate reporting according to the reporting indicators listed under main deliverables above).

4 4 The second element of the MRV system is to create data warehousing to facilitate the compilation, structure, storage, data integrity and reporting of CO 2 emission data based on the guidelines. DnV will provide this solution which will include the following elements: Framework - Data collection, storage, security and reporting - Data validation - Ship information/data model registration User administration Emission factors - Use of IMO guidelines for emission factors (various grades) Reporting/dashboards - emissions reported according to: - CO 2 emission/ton-miles - CO 2 emissions/nautical-miles sailed - Absolute CO 2 emissions d. Targets and outcome Energy efficiency targets and the subsequent reductions should be quantifiable. SEEMP should be used as a tool for identifying areas of energy efficiency improvement. Improved energy efficiency performance is expected to be to the benefit of the environment and subsequently also lead to less bunkers consumption and cost savings for participants. While each company may decide on a suitable efficiency target, such targets will, based on the individual companies own decision, be disclosed in order to showcase and highlight which companies that make the highest commitments. It is expected that the first courageous participating companies will act as models in defining ambitious efficiency targets. Indicators suitable for segments other than deep and short-sea shipping will be identified as appropriate e. Reporting Frequency On an aggregated level the reporting frequency is annual, presenting the overall performance of the FRAM participants On company level the reporting frequency will vary from quarterly to daily. Project success criteria: To include minimum 50% of the Norwegian fleet into the project. A clear and detectable trend of CO 2 emission reductions from the participating vessels over the project period from To create an effective MRV solution that is simple, flexible and trusted.

5 5 To create positive synergies among project participants with respect to improved energy efficiency performance based on individual company targets resulting in lower emissions and cost savings. Endorsement and commitment from top-level management in all participating companies and ensure that FRAM is aligned with the industry s ambitions To demonstrate commitment to stakeholders to work for energy efficient fleet and be proactive in defining a global industry standard for reporting CO 2 emissions. Mission statement To demonstrate to stakeholders our commitment to an energy efficient fleet and to be proactive in defining a global industry standard for reporting CO 2 emissions. To raise the bar on the shipping industry s overall environmental efforts by showing a willingness to take the lead in reducing CO 2 emissions. Stakeholder statement To influence the global quest to reduce CO 2 emissions from international shipping through national maritime and pollution authorities, the monitoring, reporting and verification process in EU and IMO, inputs to the Global Reporting Initiative and signal out a proactive maritime industry. Governance structure: The FRAM project is part of the WG5 structure with the distinction that it includes WWF and DnV. The FRAM governance structure contains a steering committee, a project secretariat and on request; a reference group. The steering committee and project secretariat shall meet quarterly at the minimum. FRAM is not a legal entity. However, the project carries certain obligations to Transnova with respect to the WWF initiated and approved application for funding joint project activities. The steering committee contains representatives from WWF, DnV, executives from the respective WG5 companies and NSA as secretariat including project management. The FRAM project will be managed according to joint and unified specifications outlined in the Transnova application. Any major decisions with regards to the main deliverables and scope of the FRAM project have to be agreed by this steering committee, provided such as aligned with the project specification as outlined in the Transnova application. The project secretariat constitutes of DnV, NSA and WWF. NSA holds the project leader and project management including financials, communications, marketing activities and administration of membership. NSA has a particular responsibility of recruitment of NSA eligible members into the project and ensuring that the project the project objectives are met.

6 6 A reference group will be established with the purpose of operating within key areas critical for the success of the project and meets on an ad hoc basis, on the request of the project secretariat. Steering Committee WWF, DnV and WG5 Project Leader NSA & management Reference group Project Secretariat WWF, DnV, and NSA WBS 2 NSA will maintain and manage the anonymous emission data according to the FRAM projects intentions. Participant s rights and obligations: Each participants entering into the FRAM project will become users of the solution/system. A user will have the following rights and obligations: Obligation to participate and continuously strive to improve environmental performance. Obligation to compile and verify own emission data. Right to make use of the arena for benchmarking of aggregated data. Right to make use of logo and marketing materials for own company use. Key Stakeholders: Companies in the maritime cluster Regulators, such as the IMO, the EU and national governments. Institutions related to reporting and verification of environmental data, such as the Global Reporting Initiative Various relevant maritime industry networks. Society at large, which have a vetted interest in maritime sectors contribution to ensuring a sustainable pathway for emission cuts

7 7 Disclosure Clause: The data submitted by the individual user will remain the intellectual property of said user. DNV will through its data warehouse solution maintain the safety and the integrity of the company specific data. The anonymous made data aggregated from this will be the property of FRAM, NSA will through the FRAM Foundation safeguard the aggregated data. If a user withdraws from FRAM, the company specific data will be deleted, but the aggregated anonymous data, will remain the property of FRAM. Access to the reporting system and the rights to benchmark against other companies performance is restricted to participants only. There must be no external disclosure of other companies restricted data, documents or other files unless approval has been given by the companies in question. The FRAM project will however disclose anonymous emission data aggregated on e.g. ship segment level or overall level for all Norwegian controlled ships. Open material can be freely used by all participants in FRAM for external purposes Suspension and termination of participation: Participation of FRAM is voluntary. A withdrawal must be reported to the project secretariat. The quality of the reporting framework is dependent on the quality of the input of emission data from all participants. In case a participant ceases to follow its obligations over a period of 6 months, the project secretariat may suspend the participants rights until the obligations are met. Costs and resources: No costs for project participation All expenses covered by the participant based on own voluntary efforts Each participant cover own costs associated with the focus of the project. Timeframe: 2013 until 2015 according to short and long-time timelines

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