Decarbonizing Maritime Transport

– Synopsis of the Alternatives

Captain Sukhjit Singh

Master Mariner, MS International Management (Oil and Gas)
Post Graduate Diploma (Maritime Energy Management)

Deputy Director & Technical Head, MTCC Caribbean,

The University of Trinidad and Tobago
 Outline
• Climate change and Global
Shipping Emissions - Expected
scenarios
• Factors influencing Maritime
Energy Demands
• Measure of Maritime Energy
Efficiency
• IMO initial GHG Strategy
• Trends – combination of measures
• Demands of decarbonization

The Project is Funded by the European Union and

6/26/2019 2
implemented by the International Maritime Organization
 Maritime emissions and Climate Change
Although shipping is the most carbon efficient mode of commercial
transportation it is a large and growing source of global GHG emissions.
• Shipping is responsible
for just under 1000
million tones (3%) of
annual global CO2
emissions(carbon foot
print the size greater
than that of Germany
one of the top 10
emitting countries).
• 2015 World Total: 36262
MtCO2

The Project is Funded by the European Union and

6/26/2019 implemented by the International Maritime Organization 3
 Different projections for CO2 emissions from Shipping
Source: International Transport Forum, (2018)

The Project is Funded by the European Union and

6/26/2019 implemented by the International Maritime Organization 4
 The Project is Funded by the European Union and
6/26/2019 5
implemented by the International Maritime Organization
 Factors influencing Maritime Energy Trends
Compliance / Regulatory factor
• IMO Conventions - More stringent environmental regulations
• Sulphur Cap 2020
• Emission Control Area
• UN2030 Agenda (SDGs 7, 12 & 13 in particular)
Economic /Ecoefficiency factor
• Volatile fuel oil price
• Differentiated Port dues
• CLEAN SHIPPING INDEX
• GREEN AWARD
• GHG EMISSIONS RATING
• Differentiated flag Administration fees

Socioeconomic factors
• Stakeholder preferences
• Impact of wider logistic chain
The Project is Funded by the European Union and
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implemented by the International Maritime Organization
 EEDI and EEOI

Fuel consumed (g) x Emission Factor

EEOI (g / tonne mile) =
Cargo Mass (tonne) x Distance sailed (mile)

Operational Efficiency is expressed in the form of CO2 emitted per unit of transport
work. In its most simple form the Energy Efficiency Operational Indicator is defined as
the ratio of mass of CO2 emitted per unit of transport work.
The Project is Funded by the European Union and
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implemented by the International Maritime Organization
 Relationship between EEDI, EEOI, SEEMP

EEDI to be calculated for new ships over 400 GT

The Project is Funded by the European Union and

6/26/2019 implemented by the International Maritime Organization 8
 Relationship between EEDI, EEOI, SEEMP

Phase 3
1st Jan 2025
Phase 2 onwards 30%
1st Jan 2020
reduction in
onwards 20% the required
reduction in EEDI
required EEDI
Phase 1
1st Jan 2015
onwards 10%
reduction in
required EEDI

The Project is Funded by the European Union and

6/26/2019 implemented by the International Maritime Organization 9
 Market forces driving Decarbonisation
Technology push and the business case for zero-
carbon shipping

Shippers greening their supply chains

Avoiding stranded assets once stricter regulation is

enforced

Confronting climate risks in ports and port-cities

The Project is Funded by the European Union and

6/26/2019 10
implemented by the International Maritime Organization
 IMO INITIAL STRATEGY ON REDUCTION OF
GHG EMISSIONS FROM SHIPS - LEVELS OF AMBITION AND GUIDING PRINCIPLES
• carbon intensity of the ship to decline through implementation of further
phases of the energy efficiency design index (EEDI) for new ships
• to review with the aim to strengthen the EEDI requirements for ships with
the percentage improvement for each phase to be determined for
each ship type, as appropriate;
• carbon intensity of international shipping to decline
• to reduce CO2 emissions per transport work, as an average across
international shipping, 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 2008
The Project is Funded by the European Union and
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implemented by the International Maritime Organization
 Pathways to Decarbonise Maritime Sector
Technological Measures - EEDI, Emission Abatement Technologies, Propulsion
Improvement devices, Heat Recovery systems, Air Lubrication and Hull surface.

Operational Measures - SEEMP, Speed, Ship Size, Ship- Port Interface, Just in
Time Arrivals, Onshore Power.

Alternative Fuels and Energy – LNG, Advanced Biofuels, Methanol, Fuel

Cells, Ammonia, Hydrogen, Electricity, Wind, Solar and Nuclear

Combination of above Measures

The Project is Funded by the European Union and

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implemented by the International Maritime Organization
 Sulphur 2020 Cap

Exhaust Gas Cleaning

Systems / Technology

Low Sulphur Fuel Oil

(Sulphur Content Less than
0.5 %)

Alternative Fuels / Clean Energy

Non-compliance
Post 2020 Options
The Project is Funded by the European Union and
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implemented by the International Maritime Organization
 Sulphur 2020 implications – extends beyond seas

Fuel price x Trade factor = BAF

The BAF tariff is designed to recover fuel related costs, and
it will be charged separately from the basic ocean freight as
the fuel cost is a very significant and volatile part of
shipping costs.
The fuel price is calculated as the average fuel price in key
bunkering ports around the world, whereas the trade factor
reflects the average fuel consumption on a given trade as a
result of variables like transit time, fuel efficiency and trade
imbalance.
The Project is Funded by the European Union and
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implemented by the International Maritime Organization
 Demands
• Require updating of national legislation

• Invest in Capacity Building & Enabling environment to facilitate uptake of energy efficient
measures in shipping.
❖ Enabling environment: recognizing the disparity between the available technology and technology in use, This will require
investment into institutions, infrastructure and socio economic environment.
❖ Capacity building: to extract and absorb complete benefits of any new technology adapted, human and institutional capacities need
to be prepared accordingly.
❖ Enhancing the reach of existing Institutional Actors
❖ Role of PSC – Investments in required framework for verification of compliance

• Financial Incentives for Efficient Fuel Operations in case of split incentives. (inclusion of EE
clauses in charter party)
• Financial frameworks

The Project is Funded by the European Union and

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implemented by the International Maritime Organization
 Role of MTCC framework
Aim
• improve compliance with existing and future
international energy-efficiency regulations
• help participating countries develop national energy-
efficiency policies and measures for their maritime
sectors
• promote uptake of low-carbon technologies and
operations in maritime transport
• establish voluntary pilot data-collection and
reporting systems to feed back into the global
regulatory process.
Activities
• One on One support
• Pilot projects & Regional / Sub regional workshops
• Facilitate knowledge sharing/ technology update
• Track Capacity building initiatives
• Building data baseline
The Project is Funded by the European Union and
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implemented by the International Maritime Organization
 www.u.tt/mtcc-caribbean

mtcc@utt.edu.tt

Thank You !