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European Commission: 1 European Climate Change European Climate Change Programme Programme WG Ships WG Ships First meeting - Introduction First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major European Commission DG Climate Action

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Page 1: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 1

European Climate Change ProgrammeEuropean Climate Change ProgrammeWG ShipsWG Ships

First meeting - IntroductionFirst meeting - Introduction

DG CLIMA Brussels, 8th and 9th February 2011

Mark Major European Commission

DG Climate Action

Page 2: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 2

EU Climate Change policyEU Climate Change policy

The European Council has made a firm commitment to reduce the overall The European Council has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by greenhouse gas emissions of the Community by at least 20% below 1990 at least 20% below 1990 levels by 2020levels by 2020, and by 30% provided that other developed countries , and by 30% provided that other developed countries commit themselves to comparable emission reductions commit themselves to comparable emission reductions

The European Council supports reductions, by developed countries as a The European Council supports reductions, by developed countries as a group, of 80-95% below 1990 levels by 2050. group, of 80-95% below 1990 levels by 2050.

These reductions are required to have any chance of meeting stabilisation These reductions are required to have any chance of meeting stabilisation goals to limit global temperature rise to an average of +2°Cgoals to limit global temperature rise to an average of +2°C

Such reductions will require all sectors to play their part but will require Such reductions will require all sectors to play their part but will require power generation and transport sectors to decarbonisepower generation and transport sectors to decarbonise

Page 3: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 3

Necessary changes in emissions for staying below 2°C

Global peak for all emissions by 2020

Global -50% < 1990 by 2050

Developed Countriesto cut by 80-95% < 1990 by 2050

Page 4: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 4

Scale of emissionsScale of emissions

Scenarios for CO2 emissions from International Shipping from 2007 to 2050 in the absence of climate policies

0

1000

2000

3000

4000

5000

6000

7000

8000

2000 2010 2020 2030 2040 2050

CO

2 e

mis

sio

ns

fro

m s

hip

s (m

illio

n to

ns

CO

2 /

yr)

'

A1FI

A1B

A1T

A2

B1

B2

Max

Min

Doubling or tripling of emissions by

2050

IMO GHG Study 2009

Page 5: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 5

Reductions measures = savings

Page 6: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 6

Global action - difficult to progress - IMOGlobal action - difficult to progress - IMO

Full EC/EU support to global measures developed through IMONo global baseline / targetno agreement on mandatory measures EEDI could deliver – 20% from BAU by 2030

(+ 100% from 2010 levels)Political problem - not technical

Page 7: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 7

Global action - difficult to progress - UNFCCCGlobal action - difficult to progress - UNFCCC

EU positionEU position Maritime emissions should be included in a post 2012 agreement All Parties should take action Clear and meaningful targets / -20% compared to 2005 by 2020. IMO / ICAO should agree measures in 2011 Revenue from a global MBI could be used to tackle climate change in

Developing Countries

Little support in UNFCCC for targetsLittle support in UNFCCC for targets Climate financing will be required – maritime is Climate financing will be required – maritime is

one optionone option Who does what / when?Who does what / when?

Page 8: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 8

EU Legislation – 5th June 2009EU Legislation – 5th June 2009

Unless IMO / UNFCCC measures have been approved by the 27 Unless IMO / UNFCCC measures have been approved by the 27 Member States Member States by 31 December 2011by 31 December 2011, the Commission should make a , the Commission should make a proposal.proposal.

Measures should enter into force by 2013Measures should enter into force by 2013. .

Such proposal should minimise any negative impact on EU Such proposal should minimise any negative impact on EU competitiveness, taking into account the potential environmental competitiveness, taking into account the potential environmental benefits benefits

EU Legislation - agreed by the Council (27 EU states) and European EU Legislation - agreed by the Council (27 EU states) and European Parliament Parliament

Page 9: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 9

Decision 406/2009/EC (ESD) and Directive 2003/87/EC (ETS Review)

Recitals:“In the event that no international agreement which includes

international maritime emissions in its reduction targets through the International Maritime Organisation has been approved by the

Member States or no such agreement through the UNFCCC has been approved by the Community by 31 December 2011, the Commission should make a proposal to include international

maritime emissions in the Community reduction commitment with the aim of the proposed act entering into force by 2013. Such a

proposal should minimise any negative impact on the Community’s competitiveness while taking into account the potential

environmental benefits.”

Page 10: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 10

ECCP – WG Ships

European Climate Change Programme Used since 2000 to develop European Climate Change

policies http://ec.europa.eu/clima/policies/eccp/index_en.htm

ECCP WG Ships - Objective

“Provide input to the Commission in its work to develop and assess options for the inclusion of international maritime transport in the EU's greenhouse gas reduction commitment”

Page 11: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 11

ECCP – WG Ships - Process

Three meetings (2 days each) = 6 days – can be changed COM has provided provisional list of topics (after

consultation of the MS in CCC) – can be changed Documents – online (DG CLIMA) Participants public – online (Sec. Gen) Written submissions / positions to:

[email protected]

Written minutes - online (DG CLIMA)

Page 12: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 12

ECCP – process

Background documents prepare by COM to help indicate useful areas for discussion.

Stakeholder should raise all relevant issues / concerns / views during the meetings (timing flexible)

Useful to expand on what is possible and what is NOT possible..

Page 13: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 13

Policy options

No European Commission preference at this stage

All options are open

For example: IMO / UNFCCC / own initiative Commitments / reporting / reductions measures Technical / operational / market based Timing

Page 14: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 14

High Level Panel – ships/GHG

Joint initiative of: Vice President KALLAS (DG MOVE) and Commissioner HEDEGAARD (DG CLIMA)

Invitation only – 24 participants Shipping industry, cargo owners, MEP’s, States,

NGO’s and academics Details online: http://ec.europa.eu/transparency/regexpert/detailGroup.cfm?

groupID=2560

Page 15: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 15

High Level Panel – ships/GHG

Purpose: Consider progress in IMO and UNFCCC What should be done in respect of the EU's commitment's on

taking responsibility for maritime emissions Policy action benefit the shipping industry

Strategic and political analysis (not technical issues) In parallel to formal broad stakeholder consultations

Page 16: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 16

High Level Panel – ships/GHG

First meeting held 3rd February Discussions

Preference for global measures – but recognise need for action Lack of urgency in IMO process How to get IMO / UNFCCC to deliver EU needs to work together – but also needs to convince key

allies Link action on ships to globally agreed 2°C objective

Second meeting foreseen after MBM Intersessional (e.g. April/May 2011)

Third meeting after IMO MEPC 62

Page 17: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 17

Challenge - Political problem Challenge - Political problem notnot technicaltechnical

Consensus that a broad range of known Consensus that a broad range of known technical, operational and market based technical, operational and market based measures measures are available / possible.are available / possible.

Lack of progress is a political not technical Lack of progress is a political not technical problemproblem

Not depending on future research and Not depending on future research and innovation – although that should deliver moreinnovation – although that should deliver more

Many technologies / processes / services are Many technologies / processes / services are ‘European’.‘European’.

Page 18: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 18

Problems with lack of progressProblems with lack of progress

Impact – Impact – causing dangerous climate changecausing dangerous climate change

Cost – Cost – whatever target is agreed, starting late costs more (mitigation and whatever target is agreed, starting late costs more (mitigation and adaptation)adaptation)

Fairness - Fairness - other sectors reducing for yearsother sectors reducing for years

UncertaintyUncertainty – which investments? what services? what equipment – which investments? what services? what equipment

Image – Image – COCO22 emissions from aviation capped below 2005 levels from emissions from aviation capped below 2005 levels from 20122012

Loss of influence – Loss of influence – not defining / influencing the debatenot defining / influencing the debate

Page 19: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 19

Win / win solution for maritime transportWin / win solution for maritime transport

Many GHG reductions will bring savings Many GHG reductions will bring savings Others at less than global carbon price (DNV, IMO, CE Delft) Net benefit for society

Very high energy efficient modeVery high energy efficient mode Impact on consumer price is low

No alternative No alternative For majority of inter-continental freight

Cost pass through to consumersCost pass through to consumers Principle of polluter pays

Very marginal impact on demandVery marginal impact on demand But winners / losers (within sector / consumers etc.)But winners / losers (within sector / consumers etc.)

Page 20: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 20

Cost and benefits

Costs: Administrative burden Cost of equipment Impact on costs of goods Carbon leakage /

competitiveness

Benefits: Climate protection Demand for

equipment/services Lower fuel costs Revenues for MS/sector Positive image of industry

Full and balanced discussion

Page 21: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 21

EC policy process – preparation

Stakeholder consultation on issues – 2011 Impact Assessment work – 2011/2012 Commission decision on measures

(IMO/UNFCCC/own initiative) – early 2012 Legal text / translations – early 2012 Legislative proposal 2012

Page 22: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 22

EC policy process – negotiation

Commission proposal in 2012 Co-decision 2013/2014 – (European Parliament

and Council (27 MS) work takes place on basis of Commission proposal, often several years' discussion)

Entry into force Implementation / preparation 2015-2016 Earliest feasible date for full application -

2017

Page 23: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 23

Regional actionRegional action

- Less emissions- Less emissions - Border effects - Border effects + Institutions / decision making rules in + Institutions / decision making rules in

place place + Faster to agree and enter into force+ Faster to agree and enter into force + More likely to focus on enhancing+ More likely to focus on enhancing

regional competitiveness regional competitiveness

Page 24: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 24

Global / European

Different preferences global / European Different

Policy process Legal framework Institutions Voting rules Competitiveness / carbon leakage

Different answer ?

Page 25: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 25

Stimulate broader action

Broader action on shipping is necessary Any European measures should stimulate

/ have positive impact on action by: Sector IMO Other states

Page 26: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 26

Specific studies

Study conducted for the European Commission by a consortia, lead by CE Delft, on the most feasible EU policy options to reduce international maritime GHG emissions titled: "Technical support for European action to reduce Greenhouse Gas Emissions from international maritime transport" (2009)

Study made by the Federal Environment Agency of Germany, which assesses three options for integrating international ocean shipping into the EU ETS titled: "Integration of Marine Transport into the European Emissions Trading System".

Page 27: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 27

Thank you for your attention!Thank you for your attention!

Mark Major Mark Major DG Climate ActionDG Climate Action

European CommissionEuropean CommissionB-1049B-1049

Brussels, BelgiumBrussels, Belgium

[email protected]+32 2 295 0927+32 2 295 0927

Page 28: European Commission: 1 European Climate Change Programme WG Ships First meeting - Introduction DG CLIMA Brussels, 8 th and 9 th February 2011 Mark Major

European Commission: 28

Scope of actionScope of action

Which gases? – Which gases? – CO², refrigerant gases? VOC, Black Carbon?CO², refrigerant gases? VOC, Black Carbon?

Same scope all measures? Same scope all measures? – reduction commitments, – reduction commitments,

monitoring?, reductionmonitoring?, reduction measures? measures?

Which ships? Which ships? – all > 400 GT / 20,000 GT, certain categories? – all > 400 GT / 20,000 GT, certain categories?

Exemptions? Phase in?Exemptions? Phase in?

Which emissions? Which emissions? – intra EEA voyages? all incoming – intra EEA voyages? all incoming

voyages? Last x months?voyages? Last x months? Which actors? Which actors? – all ships visiting EEA ports? Flag? Manager? – all ships visiting EEA ports? Flag? Manager?

Owner? EU Member State?Owner? EU Member State?