Worldwide there are approximately 3,000 merchant ports and the work of the Harbour Master can vary widely from country to country and from port to port even within the same country.
This statement was conveyed in an IMO Media briefing of 23 October
Draft new mandatory measures to cut the carbon intensity of existing ships have been agreed by an IMO working group. This marks a major step forward, building on current mandatory energy efficiency requirements to further reduce greenhouse gas emissions from shipping.
It is understood that the proposed amendments to the MARPOL convention would require ships to combine a technical and an operational approach to reduce their carbon intensity.
This is in line with the ambition of the Initial IMO GHG Strategy, which aims to reduce carbon intensity of international shipping by 40% by 2030, compared to 2008. The amendments were developed by the seventh session of the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 7), held as a remote meeting from 19-23 October 2020.
Submission to MEPC
The draft amendments will be forwarded to the Marine Environment Protection Committee (MEPC 75), to be held in remote session from 16-20 November. The MEPC is the decision-making body. If approved, the draft amendments could then be put forward for adoption at the subsequent MEPC 76 session, to be held during 2021.
The ISWG-GHG 7 also discussed the next steps in assessing the possible impacts on States of the proposed combined measure. This group agreed the proposed terms of reference for assessing the possible impacts on States, paying particular attention to the needs of developing countries, in particular Small Island Developing States (SIDS) and least developed countries (LDCs).
Despite the COVID-19 pandemic and postponements of meetings during the first half of the year, the progress on developing the short-term measures has continued, with two informal remote sessions in July and early October preceding the formal working group session. Progress follows the timeline as set out in the initial IMO GHG strategy. The strategy proposed that short-term measures should be those measures finalized and agreed by the Committee between 2018 and 2023.
In more detail:
Proposed MARPOL amendments
The proposed draft amendments would add further requirements to the energy efficiency measures in MARPOL Annex VI chapter 4. Current requirements are based on the Energy Efficiency Design Index (EEDI), for new build ships, which means they have to be built and designed to be more energy efficient than the baseline; and the mandatory Ship Energy Efficiency Management Plan (SEEMP), for all ships. The SEEMP provides for ship operators to have in place a plan to improve energy efficiency through a variety of ship specific measures.
The draft amendments build on these measures by bringing in requirements to assess and measure the energy efficiency of all ships and set the required attainment values. The goal is to reduce the carbon intensity of international shipping, working towards the levels of ambition set out in the Initial IMO Strategy on reduction of GHG emissions from ships.
These are two new measures: the technical requirement to reduce carbon intensity, based on a new Energy Efficiency Existing Ship Index (EEXI); and the operational carbon intensity reduction requirements, based on a new operational carbon intensity indicator (CII).
The dual approach aims to address both technical (how the ship is retrofitted and equipped) and operational measures (how the ship operates).
Attained and required Energy Efficiency Existing Ship Index (EEXI)
The attained Energy Efficiency Existing Ship Index (EEXI) is required to be calculated for every ship. This indicates the energy efficiency of the ship compared to a baseline.
Ships are required to meet a specific required Energy Efficiency Existing Ship Index (EEXI), which is based on a required reduction factor (expressed as a percentage relative to the EEDI baseline).
Annual operational carbon intensity indicator (CII) and CII rating
Proposals are for ships of 5,000 gross tonnage and above to have determined their required annual operational carbon intensity indicator (CII). The CII determines the annual reduction factor needed to ensure continuous improvement of the ship’s operational carbon intensity within a specific rating level.
The actual annual operational CII achieved (attained annual operational CII) would be required to be documented and verified against the required annual operational CII.
This would enable the operational carbon intensity rating to be determined. The rating would be given on a scale – operational carbon intensity rating A, B, C, D or E – indicating a major superior, minor superior, moderate, minor inferior, or inferior performance level. Performance level would be recorded in the ship’s Ship Energy Efficiency Management Plan (SEEMP).
A ship rated D for three consecutive years, or E, would have to submit a corrective action plan, to show how the required index (C or above) would be achieved.
The draft amendments would require the IMO to review the effectiveness of the implementation of the CII and EEXI requirements, by 2026 at the latest, and, if necessary, develop and adopt further amendments.
The draft amendments developed by the Working Group will be forwarded to the MEPC for discussion with a view to approval. If approved, they could then be put forward for adoption at the subsequent MEPC 76 session, to be held during 2021.
The MARPOL treaty requires draft amendments to be circulated for a minimum of six months before adoption, and they can enter into force after a minimum 16 months following adoption. These are amendment procedures set out in the treaty itself.
The comprehensive impact assessment would be initiated after MEPC 75, following the Committee’s approval of the terms of reference for the impact assessment. The impact assessment would be based on the Procedure for assessing impacts on States of candidate measures, adopted in 2019, which says a comprehensive impact assessment should provide a detailed qualitative and/or quantitative assessment of specific negative impacts on States, and be evidence-based and should take into account, as appropriate, analysis tools and models, such as, cost-effectiveness analysis tools, for example maritime transport cost models, trade flows models, impact on Gross Domestic Product (GDP); updated Marginal Abatement Cost Curves (MACCs); and economic trade models, transport models and combined trade-transport models.
IMO reports that the final comprehensive impact assessment of the short-term combined measure would be submitted to MEPC 76. Based on this, a possible framework for reviewing impacts on States of the measure adopted, and addressing disproportionately negative impacts on States, as appropriate, would be considered.
Initial IMO GHG Strategy
The initial IMO GHG Strategy, adopted in 2018, sets ambitious targets to halve GHG emission from ships by 2050, compared to a 2008 baseline, and reduce carbon intensity of international shipping by 40% by 2030 compared to a baseline of 2008.
Here the strategy lists a number of candidate measures which could also be considered to further reduce emissions and help achieve the targets in the strategy, in particular 40% reduction of carbon intensity from shipping by 2030.
Short-term measures could be those finalized and agreed by the Committee between 2018 and 2023, although in aiming for early action, priority should be given to develop potential early measures with a view to achieving further reduction of GHG emissions from international shipping before 2023. Dates of entry into force and when the measure can effectively start to reduce GHG emissions would be defined for each measure individually. A procedure for assessing the impact on States of a measure has been approved.
Illustration www.imo.org © IMO.
In the UK the results of a recent Chartered Institute of Logistics and Transport (CILT; see: CILT Home (ciltuk.org.uk) ) survey investigating the preparedness of Institute members ahead of the end of the transition period on 31 December 2020, reveals that a clear majority of members are concerned about the UK’s transition period coming to an end.
It is understood that the results show that 82% of CILT members who are involved in the movement of goods in and out of the EU are concerned (44% of them greatly concerned) about the transition period ending at the end of the year.
CILT stated that it is pleased to see 79% of respondents believe their organisation is at least moderately prepared for the end of the transition period. However, alarmingly, 31% of respondents told CILT they had made little or no progress with regards to EU exit preparations since the start of the year, although 77% of those questioned have made or are planning to make changes to their supply chain operations before 31 December.
Many respondents believe their organisation understands the key requirements for what needs to be done as a third-party country exporting or importing with the EU. However, members commented on feeling increasingly concerned over the lack of clarity that remains as the nation approaches the end of the transition period. Respondents also raised concerns about how imports from Northern Ireland will be handled.
As the UK Government launched the Freeports competitive bidding process towards the end of November DP World and Forth Ports advanced their bid for a Thames Freeport with London Gateway, the Port of Tilbury and Ford’s Dagenham engine plant at its heart.
Backed by the City Corporation of London, Essex Chamber of Commerce, London First, the Port of London Authority, the Thames Estuary Growth Board, Thurrock Council and the South East LEP, a Thames Freeport will, it is reported, drive innovation and transformational productivity gains by growing regional clusters in next generation logistics, automation, clean growth and advanced manufacturing. Vivid Economics is providing economic analysis in support of the bid, it is understood.
With a network of global and European shipping connections, excellent road, rail and river distribution networks, in addition to unrivalled first hand expertise in operating freeports, the Thurrock-based combined port and logistics cluster has the scale to grow the associated aerospace, automotive and many complex manufacturing and processing businesses along the Thames. This was the substance of a media release issued by Forth Ports and DP World.
The joint communiqué advised that a freeport will act as a job creation and high-quality development catalyst in an area of severe deprivation and economic need.
Both London Gateway and Tilbury ports have consented development land that is available for expansion now, with the aim to improve the opportunities for skilled jobs, bringing prosperity to the residents of Thurrock and beyond.
In the words of Alan Shaoul, DP World UK’s Chief Financial Officer: ‘Freeports will be an effective way of underpinning Britain’s economy post-Brexit and post-Covid by further enabling trade with the rest of the world and creating zones which will act as catalysts for commerce, creativity and prosperity.’