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COP 18 IMO SIDE EVENT Simon Bennett, Director External Relations - - PowerPoint PPT Presentation
COP 18 IMO SIDE EVENT Simon Bennett, Director External Relations - - PowerPoint PPT Presentation
COP 18 IMO SIDE EVENT Simon Bennett, Director External Relations International Chamber of Shipping (ICS) Doha 27 November 2012 90% of World Trade International Chamber of Shipping Principal international trade association for shipowners
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International Chamber of Shipping
Ü Principal international trade
association for shipowners
Ü 80% of world fleet Ü Members are national
shipowners’ associations
Ü Represents shipowners at IMO
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Global Rules for a Global Industry
IMO in session in London
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Need to Reconcile CBDR with IMO Global Rules
Ü Only 35% of fleet is registered
with ‘Annex I’ nations
Ü Danger of ‘carbon leakage’ Ü Ships flexible about flag of choice
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Improving CO2 Efficiency
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Shipping is Servant of World Trade
Growth ¡in ¡world ¡seaborne ¡trade ¡
Source: ¡Fearnleys
15000 20000 25000 30000 35000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 est.
Billion ¡tonne ¡miles
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IMO Agreement Addresses CBDR
Ü Includes regulation on technology
transfer and technical co-operation with developing nations
Ü Flag State waiver on immediate
application of EEDI (but most shipowners will not use)
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Market Based Measures (MBMs)
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MBMs are Controversial
Ü High fuel cost already provides
efficiency incentive
Ü Danger of modal shift to less CO2
efficient modes of transport
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Shipping is not a Cash Cow
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But Shipping Must Play its Part in Development of MBMs
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MBM Proposals
1.
Using EEDI to reward or penalise ships
2.
Emissions Trading Schemes
3.
Compensation Fund Linked to Fuel Consumption
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Shipowners’ Preference IMO Compensation Fund Linked to Fuel Consumption
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Addressing CBDR….
Ü If governments decided, industry
would support funds being directed to help climate change projects in developing nations
Ü If governments decided, possible
linkage to UNFCCC ‘Green Fund’
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Report on Climate Finance
Ü Welcome of acknowledgment of
IMO progress, and ‘fuel levy’ as an MBM option
Ü High level UNFCCC / IMO / ICAO
Working Group worth exploring
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Link to UNFCCC Green Fund?
Ü But shipping’s contribution must
reflect share of world emissions
Ü Governments must not keep money
for themselves
Ü Must not become a tax on trade
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Conclusions
Ü Significant emission reductions more
likely if agreed by IMO on global basis
Ü If IMO not permitted to develop MBMS,
danger of regional/unilateral action
Ü UNFCCC/IMO Group on shipping
finance should be considered by governments
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