Green Economy in a Blue World-Full Report

largest segments of the world merchant fleet, first, and is expected to cover as much as 70 per cent of emissions from new ships. There is also a requirement for a Ship Energy Efficiency Management Plan to be carried out and implemented by all ships as from 2013 – these being known as ‘operational’ measures (see also section 2.4.3). In order to secure even greater CO 2 reductions from international shipping, IMO is also examining the development of possible Market- based Measures (MBMs) which could be applied globally to shipping. In summary, governments at IMO have agreed key principles for the development of regulations on CO 2 from ships so that they will: • Effectively reduce CO 2 emissions; • Be binding and include all flag states; • Be cost effective; • Not distort competition; • Be based on sustainable development without restricting trade and growth; • Be goal-based and not prescribe particular methods; • Stimulate technical research and development in the entire maritime sector; • Take into account new technology; • Be practical, transparent, free of fraud and easy to administer. The international shipping industry also subscribes to these principles. It is recognized, however, that, with regard to reducing shipping’s CO 2 emissions, the situation is more complex than with measures to address other sources of pollution from ship’s transport. While IMO is the UN agency responsible for the protection of the environment from the impact of maritime transport, it is, of course, the UNFCCC which addresses the overall obligations of governments with regard to reducing greenhouse gas (GHG) emissions. As already acknowledged by the Kyoto Protocol, emissions from international shipping cannot be attributed to any particular national economy. Multilateral collaborative action will be the most appropriate means to address emissions from the maritime transport sector. This is best achieved by governments at the specialist UN agency – the IMO – which has a successful track record in the development of global regulations governing the shipping industry’s environmental performance. As previously discussed, the MARPOL Convention

– which now includes technical measures to reduce CO 2 from ships – is ratified and enforced globally through a combination of flag State and port State control by IMO Member States. With regard to GHGs, in particular, it is generally recognized that the delivery of significant emission reductions by the maritime sector will require that any mandatory measures adopted are applied on a uniform and global basis to avoid ‘carbon leakage’. Most shipping companies have the freedom to decide to register their ships with the flag State of their choice, including those which, under the current Kyoto Protocol, are not ‘Annex I’ nations. Measures to deliver meaningful emission reductions are, thus, much more likely to be achieved by instruments developed by governments at IMO since only about 35 per cent of the world merchant fleet is registered in Kyoto Annex I countries (ICS, 2012g). The direct Kyoto Protocol concept of ‘common but differentiated responsibility’ (CBDR) cannot be practically applied to shipping without the danger of significant carbon leakage. The flag State with which a ship is registered or, indeed, the ‘nationality’ of the entity operating the ship, can change frequently, especially when ships are bought and sold. IMO has, nevertheless, addressed the CBDR principle, in the regulations on technical CO 2 measures contained in MARPOL Annex VI, by providing for governments to provide technical assistance and undertake technology transfers to support developing countries, and by allowing some flexibility with respect to the dates when the new measures have to be applied. However, the direct application of the CBDR concept – i.e. different standards being applied according to the flag of the ship – would cause gross distortion of shipping markets, reduce the efficiency of maritime transport and, thus, the smoothflowofworldtrade, andwouldnotprovide for environmental effectiveness. Conversely, the IMO principle of ‘no more favourable treatment’ ensures that standards adopted for shipping are applied equally throughout the world, delivering maximum environmental improvement. Accordingly, the achievement of further reductions in CO 2 emissions will be best pursued if nations agree that the development of detailed measures, for the international merchant fleet, should be directed by governments at IMO–while respecting the outcomes agreed for the sector under any new UN climate change convention.

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