CEFIC Strategy for Sustainable Logistics for Chemicals. Mr. Jos VERLINDEN

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Paving the Way for Sustainable Freight Transport Qatar National Convention Centre / Auditorium 3 Doha, 25 April 2012-15.

1 Paving the Way for Sustainable Freight Transport Qatar National Convention Centre / Auditorium 3 Doha, 25 April CEFIC Strategy for Sustainable Logistics for Chemicals Mr. Jos VERLINDEN Director Transport & Logistics CEFIC 1

2 UNCTAD XIII Doha 25 April

produce 21% of the world chemical products and

3 What is Cefic? European Chemical Industry Council: Cefic is the voice of the European chemical industry, based in Brussels, representing 27,000 chemical companies that produce 21% of the world chemical products and employ over 1.2 million people Members 28 national federations 50 major international companies 150 sector groups and their member companies 3

4 An inspiring model of self-regulation that other industries should consider following. (Kofi Annan, 2006) Global Initiative for continuous HSE improvement in the chemical industry 53 National RC Schemes Core Principles: 1. Improve the health, safety and environmental performance 2. Use resources efficiently and minimise waste 3. Report openly on achievements and difficulties 4. Engage in dialogue with stakeholders, in particular with the local communities who live and work around our sites 5. Cooperate with regulators and set standards that go beyond regulations 6. Provide help and advice to foster the responsible management of chemicals throughout the value chain 4

5 . Responsible Care worldwide 6 Gulf countries joined RC in 2010 Russia started in 2007 Ukraine joined RC in China starting in

6 Responsible Care in the Gulf Gulf Petrochemical & Chemical Association (GPCA) (Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, Oman) 54 th RC member association Supported by Cefic & American Chemistry Council 6

Responsible Care - Partnerships in logistics ECTA

RC Programme for chemical transport companies FECC

European RC Programme for chemical distributors

7 Responsible Care - Partnerships in logistics ECTA (European Chemical Transport Association): European RC Programme for chemical transport companies FECC (European Association of Chemical Distributors): European RC Programme for chemical distributors Passing Responsible Care on along the chemical supply chain 7

8 Sustainable Development PLANET PROFIT SUSTAINABLE DEVELOPMENT PEOPLE PRODUCTS 7

Footprint SUSTAINABLE LOGISTICS PRODUCTS PEOPLE Safety Health

9 Sustainable Logistics PLANET PROFIT Cost Efficiency Employment Competitiveness Noise Land Use Air Quality Carbon Footprint SUSTAINABLE LOGISTICS PRODUCTS PEOPLE Safety Health Urban Planning Working Conditions Light Weight Vehicles Fuel Additives 8

10 14 % of global greenhouse gases originate from the transport sector making it the third largest emission source* *Source: World Resources Institute 10

11 EU-27 GHG emissions from transport have continued to increase and are projected to continue to do so Source: European Environment Agency (EEA) Source: SULTAN, Development of an Illustrative Scenarios Tool for Assessing Potential Impacts of Measures on EU transport GHG; Increasing CO 2 emissions from transport have the potential to undermine the EU s ability to achieve its long-term GHG reduction objective Without additional policy intervention, CO 2 emissions from transport are expected to be approx. 25% higher in 2050, compared to

12 Why is sustainable logistics important for the chemical industry? Commitment to Responsible Care and Sustainable Development Safety risks of chemicals Efficiency improvements Fuel savings Less emissions Less Costs Customer expectations 12

13 McKinnon Report July 2010 See 13

14 Cefic Guidelines for Measuring and Managing CO 2 Emissions from Freight Transport Operations April 2011 General framework Calculation method Average emission factors Calculation template Opportunities to reduce emissions See 14

15 Cefic Guidelines for measuring and managing of CO2 emissions from freight transport operations Company approach for establishing a green logistics strategy and action plan Key steps Establish framework for transport CO2-footprint measurement Calculate baseline (e.g. CO2-footprint in 2011) Determine realistic CO2-emission reduction target (baseline -> 2020) Establish action plan, identifying measures to reduce CO2-footprint Monitor progress and report year-on-year achievement 15

16 Average transport emission factors Transport mode gco2/ton - km Air freight 602 Road transport 62 Barge transport 31 Intermodal road / rail 26 Rail transport 22 Short sea 16 Deep-sea container 8 Deep-sea tanker 5 Pipelines 5 16

17 Carbon footprint of European chemical freight transport Share of different transport modes Sea SEA Road ROA D ROA D 17

18 How to reduce transport footprint PARAMETER INFLUENCING FACTORS Volume / Weight Product design Distance Transport mode Supply Chain Design Vehicle capacity Vehicle loading factor Vehicle utilisation Backloading Vehicle fuel efficiency Vehicle engine Vehicle design Transport company Shipper Driver behaviour 19

19 Safety and Quality Assessment System SQAS An assessment system of the chemical industry to evaluate the quality, safety, security and the environmental performance of Logistic Service Providers in a uniform manner by single standardised assessments carried out by independent assessors Common industry questionnaires Accreditation assessors Database of all assessment reports Number of assessments SQAS drives continuous improvement of safety and environmental performance of transport companies

20 Industrial policy for sustainable transport Technological developments (engines - ITS) Investment in transport Infrastructure Further liberalization of transport Incentives to promote green logistics rather than taxes Global protocols to reduce transport GHG emissions 20

21 Role of International Agencies Raise awareness Share best practice Promote new developments Develop global initiatives and protocols 21

22 Conclusions We are still at the beginning of the journey Most companies are still in the learning phase but awareness is growing quickly There is no silver bullet for reducing emissions: a combination of many actions will be needed Start with the low hanging fruit Improving logistics efficiencies goes hand in hand with transport decarbonisation 22

23 Thank you for your attention! 23 23

New CO2 Calculation Methods and Models

New CO2 Calculation Methods and Models ECTA RC Workshop - 14 September 2017 Jos Verlinden Agenda 1. Background 2. Cefic-ECTA Guidelines for C02 measuring 3. GLEC Framework 4. IRU Commercial Vehicle of