Sustainable Shipping -operating towards 2020 and beyond

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1 Click to edit Master title style Sustainable Shipping -operating towards 2020 and beyond Asia Pacific Petroleum Conference (APPEC 2018) Singapore, 26 Sep 2018 Elfian Harun, Environment Manager

2 AGENDA 1. Introduction 2. What is Sustainable Shipping? 3. Overview of Sustainable Development work a. United Nation s Goals b. IMO s Focus 4. IMO s Focus a. Pollution to Air b. Pollution to Sea c. Protection of Coastal/ Marine Ecosystems 5. Shipowners Perspectives 6. Conclusion 2

3 INTERTANKO 2018 International Association of Independent Tanker Owners Non-governmental organisation est in Oslo Strict membership criteria 204 Members in 40 countries Observer Status at IMO, IHO, IOPC, UNFCCC, OECD, UNCTAD Oslo - London - Washington Singapore Brussels - Athens 3

4 WHAT IS SUSTAINABLE SHIPPING? Sustainable Shipping Regulatory compliance? Corporate philosophy? Sustainable Shipping A holistic management concept for sustainable development, applied to the shipping sector, incorporating environmental and social responsibility. Sustainability includes three main pillars: Environment, Society and Economy and the development of Sustainable Shipping is the result of the strengthening of these three pillars. -European Maritime Safety Agency 4

5 SUSTAINABLE DEVELOPMENT- UN S GOALS Plan of Action for People, Planet & Prosperity 17 Sustainable Development Goals; 169 related targets Member States commitment during the period up to

6 SUSTAINABLE DEVELOPMENT- IMO S FOCUS Safe, Secure and Efficient Shipping on Clean Oceans 6

7 SUSTAINABLE DEVELOPMENT- IMO S FOCUS MEPC s Objectives Control and prevention of ship source pollution Manage and protect marine and coastal ecosystems 7

8 IMO S FOCUS- AN OVERVIEW Pollution Prevention Pollution Preparedness and Response Ballast Water Management Biofouling Anti-fouling Systems Ship Recycling Port Reception Facilities Special Areas under MARPOL Particularly Sensitive Sea Areas (PSSAs) Dumping of Wastes and other matter into the sea Pollution to Air Pollution to Sea Protection of marine and coastal ecosystem 8

9 IMO S FOCUS- POLLUTION TO AIR Focus 1 Limits main air pollutants (SOx, NOx, and PM) in ships exhaust gas Source: US Energy Information Administration Emission Control Areas (ECAs) 9

10 IMO S FOCUS- POLLUTION TO AIR SOx cap in 2020 Compliance Options Pros Cons Use MGO/MDO ( Distillates ) Install Exhaust Gas Cleaning System ( Scrubbers ) Use LSFO that meets requirements ( Blended / Hybrid ) Available at most ports Ships can still use the relatively cheap MFO Relatively cheaper option than using MGO/MDO Costs may increase due to increase demand Disposal of Scrubber s waste may be an issue at certain ports Returns on investment? Create other environmental issue? Will MFO still be available, as demand decrease? Compatibility issues Safety of life and ship? Other Alternative fuels (methanol, LNG, biofuel, solar, wind, etc.) Environmentally friendly High research and investment costs Beyond 2020 Greater restriction on PM? Proliferation of ECAs (i.e. 0.1%S)? 10

11 IMO S FOCUS- POLLUTION TO AIR Focus 2 Prohibits deliberate emissions of ozone depleting substances Initial IMO Strategy Carbon intensity of the ship to decline through implementation of further phases of the energy efficiency design index (EEDI) for new ships Strengthen the energy efficiency design requirements for each ship type Carbon intensity of international shipping to decline Reduce CO2 emissions by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008 GHG emissions from international shipping to peak and decline To peak GHG emissions from international shipping as soon as possible and to reduce the total annual GHG emissions by at least 50% by 2050 compared to

12 IMO S FOCUS- POLLUTION TO AIR Possible Measures (not exhaustive) Short-Term ( ) Further improvements on EEDI and Ship Energy Efficient Management Plan (SEEMP) Develop technical and operational energy efficiency measures for both new and existing ships Consider and analyse use of speed optimization and speed reduction INTERTANKO s focus up to Tightening of EEDI EEDI base line for large tankers not entirely correct Consider and address emissions of methane and Volatile Organic Compound Encourage national action plan to address GHG emissions from international shipping Mid-Term ( ) Use of alternative lowcarbon and zero-carbon fuels Operational energy measures for both new and existing ships Emission reduction mechanisms Long-Term (beyond 2030) Provision of zerocarbon or fossilfree fuels Emission reduction mechanisms Mandatory application of SEEMP as part of ship s Safety Management System Existing SEEMP already included guidance on speed optimization and operational efficiency indicators Slow steaming options Currently voluntary

13 IMO S FOCUS- POLLUTION TO SEA Issues Oil Pollution Chemical Pollution Sewage Garbage Pollution Preparedness and Response Compliance remains a problem due to poor ship design INTERTANKO working on Integrated Bilge Treatment System Focused on improved oily waste management system (bilge and sludge) Oil record book management and record keeping still an issue that needs to be addressed 13

14 IMO S FOCUS- PROTECTION OF COASTAL/MARINE ECOSYSTEM Ballast Water Management (BWM) BWM Convention entered into force on 8 Sep 2017 Currently in Experience Building Phase Proposals for MEPC to consider in Oct Safety, Technical and operational matters for specific ship types for improved and consistent implementation of the BWM Convention Documentation review of the BWM Convention Biofouling Biofouling Guidelines developed Biofouling management reflected in 2016 Guidelines for development of a Ship Energy Efficiency Management Plan (SEEMP) Biofouling Regulations Member States pushing stricter control w/out offering proper solutions to ships 14

15 IMO S FOCUS- PROTECTION OF COASTAL/MARINE ECOSYSTEM Ship Recycling International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 ( HK Convention ) adopted in 2009 Pending entry into force Requirement 15 (6) Member States representing not less than 40% (20.42%) of the world s tonnage and an annual ship recycling volume of not less than 3% (0.02%) of the GT of the contracting States fleet. [numbers in brackets denotes current state] If entered into force Ships required to carry inventory of hazardous materials Not easy to develop if based on EU s Ship Recycling Regulation May cause significant problem to Port State Controls Ship recycling yards required to provide Ship Recycling Plan 15

16 IMO S FOCUS- PROTECTION OF COASTAL/MARINE ECOSYSTEM Port Reception Facilities Not all port provide reception facilities for all type of wastes Beyond 2020 Can all ports accept Scrubber wastes (eg. close loop)? Dumping of Wastes and other matter into the sea/ Special Areas under MARPOL/ Particularly Sensitive Sea Areas (PSSAs) Beyond 2020 Will ports ban scrubber wastes (from open-loop) from being discharged into their waters? Development of new Special Areas/ PSSAs? New Issue: Underwater Noise Pollution 16

17 SHIPOWNERS PERSPECTIVES Considerations Sound and practical requirements/ guidelines Uniform and consistent implementation globally Ports to provide facilities for ships to carry out their obligations at reasonable cost (eg. reception facilities for all type of wastes from ships) Minimise delays to ships voyage 17

18 INTERTANKO S ROLES Provide platforms for members to share best practices Seek feedback on operational constraints on the ground and work with IMO/ Administrations to address the issues Provide advise and guidance for members to comply with existing requirements as well as future standards/ requirements Influence and monitor developments of international, regional or national requirements that would impact Members tankers Influence key stakeholders to ensure that there are adequate reception facilities at reasonable cost 18

19 CONCLUSION International Regulations Regional Legislations Charterers commercial pressures OWNERS QUALITY OWNERS NEED TO CONSTANTLY PLAN ONE OR TWO STEPS INTO THE FUTURE TO MEET REQUIREMENTS SET BY CHARTERERS AND/OR IMO 19

20 Click to edit Master title style THANK YOU