Page 40 - European Energy Innovation - Spring 2015 publication
P. 40
Spring 2015 European Energy Innovation


• Firstly, split incentives. The monitoring, reporting and measure sets minimum energy
party paying for the investment verification (MRV) efficiency requirements for new
in an efficiency measure ships built after 2013. This is an
(the ship owner) is not the 2. Defining a mid-term emission important step forward, as the
beneficiary of the associated reduction target for the sector EEDI is expected to reduce the
fuel cost savings (the charterer sector’s greenhouse gas emissions
of the ship). This does not 3. Introducing further regulatory by 20% by 2030 compared to a
create the conditions and measures to incentivise ‘do-nothing scenario’.
incentives for highly cost- emissions reductions at least
effective investments to occur. possible cost But this measure alone does
not deliver sufficient emissions
• Secondly, lack of access to A robust system for MRV is a reductions. IMO partners have
finance. In today’s difficult prerequisite for any regulatory recently put much effort and
economic context, ship owners measure to reduce emissions. It hope on ideas to establish further
do not necessarily have should also by itself contribute efficiency standards that would
sufficient cash to invest into to removing market barriers. also cover the existing fleet, as
energy efficiency. This is why, as a first step, the well as operational measures to
Commission put forward a test efficiency indicators. These
• And finally, the sheer lack legislative proposal for an EU- would be based on a step-wise
of reliable information. wide legal framework for MRV. approach starting with an initial
Charterers, or potential buyers The EU institutions reached data collection phase, equivalent
of ships, do not have access to a political agreement on the to the EU’s MRV Regulation.
reliable and comparable data proposal in November 2014, and
on ships’ fuel consumption final approval by the European Developing and adopting such
and efficiency, and thus Parliament and the Council is measures by 2016 should be the
cannot consider this important expected in May 2015. top priority for IMO members.
aspect when taking business The EU will continue to push for
decisions. In addition, ship Under the new Regulation, from effective action at international
owners cannot increase the 1 January 2018 onwards all large level. Industry support will also
market value of their ships by ships using EU ports would be be essential to make this happen.
investing in efficiency, as this is required to annually report their 2015 will see the intensification
not reflected by market prices. CO2 emissions. The approach is of global talks for a new climate
Economists call such non- lean and pragmatic as it relies on agreement due to be sealed in
transparent markets a ‘lemon using existing documents and Paris at the end of the year. All
market’ where low quality equipment. The data will need sectors, including international
products can easily compete to be independently verified shipping, are expected to
with high quality products. and then annually reported. The bring their fair contribution. It
Commission will make aggregated is therefore important that the
NEED FOR REGULATORY data publicly available on a “per IMO, at its 68th session of the
ACTION ship” basis. The Regulation also Marine Environment Protection
To overcome these market includes a revision clause to align Committee, sends a strong
barriers, regulatory action is the EU system to a global system signal about its commitment to
needed. With this in mind, the once adopted by the IMO. contribute to these global efforts.
European Commission proposed
in 2013 a staged approach to GLOBAL ACTION IS PRESSING The EU, however, is not waiting to
reduce greenhouse gas emissions At global level, the IMO started act. By going ahead with its new
from shipping. It consists of the its work on greenhouse gas legislation, it can build up data
following steps: emissions already in the 1990s. and experience to help inform and
The first outcome of this work influence international discussions
1. Measuring ship emissions was the Energy Efficiency Design towards a more climate-friendly
by introducing a system for Index (EEDI) adopted in 2011. This global shipping sector. l
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