Thu 14 Apr 2016, 08:46 GMT

ICS calls for 'immediate' decision on IMO sulphur cap


Submissions made to Marine Environment Committee (MEPC) for next week's London meeting.



The International Chamber of Shipping (ICS) has made a number of submissions to a meeting of the International Maritime Organization's (IMO) Marine Environment Committee (MEPC), which begins in London next week (18-22 April).

The submissions address further measures to reduce the sector's carbon dioxide (CO2) emissions and its call for an "immediate IMO decision" on whether or not ships will be required to use 0.5% sulphur fuel in 2020.

Early decision on IMO sulphur cap

The MARPOL Convention requires that ships outside Emission Control Areas (ECAs) must use fuel containing no more than 0.5% sulphur in 2020, but leaves open the possibility of postponement until 2025 depending on the outcome of a study into the availability of compliant fuel currently being conducted by IMO.

In a further submission (made with Intertanko), ICS has requested IMO member states to make a clear decision about whether or not the global sulphur cap will be implemented in 2020, at its next session in October 2016.

"The decision will be significant because the cost of compliant fuel could be over 50% more than the cost of residual fuel that most ships currently burn," said Hinchliffe. "Whatever date is decided by IMO, ship operators and oil refiners will need as much time as possible to prepare for the impact. The refining industry will need to take important decisions to ensure that sufficient quantities of compliant fuel are available. Shipowners will need time to take important decisions about whether to invest in alternative compliance mechanisms such as scrubbers or LNG."

CO2 data collection system

ICS says its immediate priority is to help ensure that a new global CO2 data collection system is adopted by IMO as soon as possible. This will then facilitate the possible development of additional CO2 reduction measures, it believes.

ICS Secretary General, Peter Hinchliffe, explained: "The data global system now before the MEPC is a workable compromise between governments primarily interested in data on fuel consumption and CO2 emissions and those that wish to collect additional information, for example on so called transport work."

ICS fears that any failure by the MEPC meeting to make progress could result with unilateral action against international shipping. The European Union has already adopted a regional regulation on the monitoring reporting and verification (MRV) of individual ship emissions. This currently uses different metrics to those about to be adopted by IMO. The apparent intention of the European Commission is to develop this into a regional system of mandatory operational efficiency indexing of individual ships, which ICS says will lead to "serious market distortion".

"Any possibility of persuading the EU to adjust its regulation to make it compatible with that agreed internationally could be weakened if there is any further delay at IMO. It is disappointing that EU Member States, acting as a block, now wish to reopen discussion on some of the data metrics on which there was seemingly consensus at a recent IMO meeting in which many EU nations participated," ICS added.

ICS has set out its support for immediate adoption of the CO2 data collection system in a submission made jointly with BIMCO and Intercargo.

CO2 reduction commitments

In a separate submission to the meeting, ICS has responded to the Paris Agreement on climate change with a proposal that IMO should develop an Intended IMO Determined Contribution for CO2 reduction on behalf of the sector. This would mirror the commitments or Intended National Determined Contributions (INDCs) which governments have made for their national economies, but from which international transport is currently excluded.

However, ICS emphasises that the Paris Agreement recognises that different parts of the global economy, including shipping, will need to decarbonise at different speeds, and that international shipping should not be expected to make the same level of CO2 commitments as developed economies. ICS says its member national shipowners' associations are now developing ideas on what such an IMO commitment might entail, for discussion at a future session of the MEPC.


Jurgen Gerdes, WinGD. WinGD signs global service agreement for TMS Cardiff Gas LNG carrier newbuilds  

WinGD will support six dual-fuel engines on three new LNG carriers for the Athens-based operator throughout their operational lives.

Yangze LNG 01 vessel. Yangzijiang Xinfu delivers first 175,000-cbm LNG carrier built by Chinese private shipyard  

Vessel features two dual-fuel MAN B&W 5G70ME-C10.5-GA-EGR engines fitted with cryogenic units.

Kaguya 200th ship-to-ship (STS) LNG bunkering operation. LNG bunkering vessel Kaguya completes 200th ship-to-ship operation in Japan  

K Line’s joint venture vessel reaches milestone in Mikawa Bay.

MFM Nicole vessel. Synergy Marine adds dual-fuel LPG carrier to managed fleet  

MFM Nicole joins Synergy’s gas carrier portfolio as owners weigh fuel choices ahead of MEPC 85 negotiations.

CMA CGM Notre Dame vessel. DSV to use CMA CGM’s ACT+ solution to slash shipping emissions  

Danish firm targets 12,000-tonne reduction in CO₂ emissions over two years through the use of UCOME-based biofuels.

Peninsula 2026 graduate cohort. Peninsula welcomes 2026 graduate cohort across global bunkering network  

Bunker firm brings new graduates into roles spanning Houston, Singapore, Gibraltar, Monaco and Las Palmas.

Mathias Krogsgard, Malik Supply. Malik Supply appoints Mathias Krogsgård as bunker trader  

Danish bunker firm adds trader with export and technology background to growing team.

Jeroen De Vos, Peninsula. Biofuel adoption in shipping shifts from debate to delivery, says Peninsula's Jeroen de Vos  

Marine biofuels have moved from pilot projects to routine fuel strategy, argues IBIA vice-chair.

KEPCO E&C and KR signing. KEPCO E&C and Korean Register of Shipping to collaborate on marine SMR development  

Korean firms to develop technical standards and certification pathways for the BANDI offshore small modular reactor.

Ship-to-ship (STS) LNG bunkering operation at the Port of Sagunto. Peninsula completes first LNG bunkering operation at Sagunto  

Levante LNG bunkering vessel supplies K Line car carrier in landmark delivery.