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International shipping could reduce its emissions by at least one fifth at no net cost to the industry, according to a new International Maritime Organisation (IMO) report.

The report entitled "The Second IMO GHG Study 2009, was prepared for a meeting in London today, where shipping industry representatives have been discussing ways of incorporating shipping emissions into the new global climate deal due to be settled at the UN Climate Change Conference in Copenhagen in December.

According to the report shipping emissions could double or even triple by 2050 under Business as Usual scenarios.

“Mid-range emissions scenarios show that, by 2050, in the absence of policies, ship emissions may grow by 150 percent to 250 percent (compared to the emissions in 2007) as a result of the growth in shipping,” the study said.

However the report also mentions the potential that exists for shipping to cut its emissions through new technologies and practices, which would actually save the industry money because of the fuel savings incurred over their lifetime.

"A significant potential for reduction of [greenhouse gas emissions] through technical and operational measures has been identified," the report says. " These measures could increase efficiency and reduce the emissions rate by 25 per cent to 75 per cent. There is a range of measures whose cost efficiency is negative. That means that these measures are profitable even when CO2 emissions have no price."

The report considers a whole range of measures, including towing kites, speed reductions, and upgrades to hulls, engines and propellers. It argues that the incorporation of shipping into a global Emissions Trading Scheme (ETS) or imposing a levy on bunker fuel would represent an "efficient and cost-effective" way of delivering further cuts in shipping emissions.

At next week’s conference the industry will aim to decide its position on whether shipping should be included in the global climate deal through emissions trading or a levy. Many national associations support one or other of these measures - for instance the British Chamber of Shipping has come out in favour of ETS.

Shipping schemes will be discussed further at an IMO meeting in July, which will report on the progress IMO has made before the United Nations Framework Convention on Climate Change (UNFCCC) meeting in Copenhagen.

Commenting on the report, Peter Lockley, Head of Transport Policy at WWF-UK, said “Until now, the shipping industry has managed to avoid the high levels of public scrutiny that the aviation sector has faced.

“This report confirms that shipping is a substantial source of emissions, but also demonstrates that the industry has nothing to fear from joining the global climate regime, and could actually make financial gains if it gets serious about addressing its carbon emissions.”

“WWF believes it is vital that shipping emissions come within an overall cap under the post-2012 climate regime, as they are projected to rise even if gains in efficiency are taken into consideration,” Lockley said.