incentivizing sustainable shipping -...
TRANSCRIPT
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INCENTIVIZING SUSTAINABLE SHIPPING
Veracruz
20th October 2016
Partnering for Sustainable Ports
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. . . IN A SENTENCE!
Partnering for Sustainable Ports
RightShip is an innovative
organization with a social conscience,
best known for our work on maritime
safety.
We also have a growing reputation for
our work in environmental
sustainability.
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• Independent company formed in 2001
• Ship vetting & risk management
• GHG Emissions Rating & Enviro Score
RIGHTSHIP
Partnering for Sustainable Ports
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Page 4 Page 4 2015 IN A NUTSHELL
• 37,999 vets – 2,152 (6%) from 2014
• 11,329 petroleum vets – 1,970 (21%) from 2014
• 3.34b DWT vetted – 183m (6%) from 2014
• 156,813 login sessions – 11.3k (7%) from 2014
• 2,487 inspections – 579 (19%) from 2014
– 609 Dry – 21 (3%) From 2014
– 1,878 Petroleum – 558 (23%) from 2014
Partnering for Sustainable Ports
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Issue with Shipboard Emissions
GHG emission Rating & EEDI/EVDI
Efficiency Savings – verified!
Why - Port Incentive Program
Elements of a P I P
Conclusion
Partnering for Sustainable Ports
TODAY’S DISCUSSION
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SHIPPING’S GROWING EMISSIONS PROBLEM
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Chin a
U S A
Russian Fed.
India
Japa n
G lobal F lee t
G erman y
Canad a
Uni t ed K ingdo m
0 2 4 6 8
Emissions (Gigatons CO2)
Global shipping – amongst the world‟s largest carbon dioxide emitters
CONTEXT OF MARITIME EMISSIONS
Partnering for Sustainable Ports
Data Sources: Third IMO GHG Study (2014), UNFCCC COP21 (2015)
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International Maritime Organisation‟s „Energy Efficiency Design Index‟ (EEDI)
• Ships built after 1 January 2013
• ~5,000 ships regulated by EEDI
• ~70,000 existing ships not covered by regulation
• Lack of clarity into individual ship efficiency
• ‘One-size-fits-all approach’
Incentivizing Sustainable Shipping
IMO DEFINES EFFICIENCY
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CALCULATING THE A-G GHG EMISSIONS RATING
100,000 DWT
Bulker 90,000 DWT
Bulker
10% smaller in DWT 10% larger in DWT
4.334 4.064 4.334 3.689 4.459 4.334 3.994 4.007 3.742 4.401
4.159
1 2 3 4 5
EVDI / EEDI
Calculate EVDI Log
Value
Apply Weights to Log Values
Calculate Z-Score
GHG Emissions
Rating
110,000 DWT
Bulker
Partnering for Sustainable Ports
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GHG EMISSIONS RATING
Robust Methodology: DNV GL reviewed
Easy to use, understand
Corporate Social Responsibility, transparency
Reduces CO2 & associated emissions
Cheaper to run: Tyndall research
Free of charge: www.shippingefficiency.org
Partnering for Sustainable Ports
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DOES IT PAYS TO BE GREEN?
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METHODOLOGY
Incentivizing Sustainable Shipping
CASE-BY-CASE ASSESSMENT
vs.
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METHODOLOGY
Incentivizing Sustainable Shipping
FUEL CONSUMPTION – CO2 EMISSIONS
Single Voyage and Long Term Time Charter
Chartered vessel
• AIS tracking (satellite) utilized
• Origin and destination of journey
• Speed and distance
„Replaced‟ vessel
• Design particulars
• Estimate journey
Methodology: ~3rd GHG Study
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RESULTS
Incentivizing Sustainable Shipping
AVERAGE SAVINGS: 5.2% – 8.6%
Case-by-case assessment
• 247 cases assessed
• 136 cases suitable for comparison
Fuel Consumption and CO2 Savings
• Majority of individual cases achieved savings
• Charter party key factor:
– Size / utilization
– Speed (design speed) Shipmap.org
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“Explicitly considering fuel
efficiency in chartering
decisions offers significant
fuel, financial, and emissions
savings”
CONCLUSION
Incentivizing Sustainable Shipping
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SUSTAINABLE VESSEL SELECTION PAYS
Partnering for Sustainable Ports
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PORT INCENTIVE PROGRAM
Partnering for Sustainable Ports
In Americas . .
Implemented in Vancouver & Port Prince Rupert
Working with Lazaro Cardenas, Ensenada, Port of Quebec
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HOW DOES THE PROGRAM WORK?
Vessel Verifies data & agent applies for discount
Port verifies eligibility from RightShip Database
Port issues incentive
Port determines incentive program to reward energy efficient vessels
1
2
3
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PORT INCENTIVE PROGRAM – 6 STEP ROADMAP
1 • Initial engagement with ports to scope will and capability to offer incentives
2 • Overview of structure and benefits within a environmental incentive program
3 • Benchmark historical vessel arrivals to estimate potential cost implications for the
port incentive program
4
• Port internal approval process – determine structure of incentive program including cost, administration, communications and operational requirements
5 • Develop a joint media plan and schedule for press release
6 • Implement environmental incentive program, including ongoing monitoring and
program reviews
Partnering for Sustainable Ports
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PORT INCENTIVE PROGRAM – SCOPE
1
• Initial engagement with ports to scope will and capability to offer incentives
Partnering for Sustainable Ports
Sign MOU with RightShip as facilitated by OAS - CIP
Provide historical list of vessels calling at port for the last two years
for analysis (date of arrival, date of departure, IMO #, DWT, ship type
and vessel name)
RightShip provides detailed analysis within four weeks
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PORT INCENTIVE PROGRAM – STRUCTURE & BENEFITS
2 • Overview of structure and benefits in the Incentive Program
Partnering for Sustainable Ports
Review analysis of the vessel calls
Determine eligibility for discount/benefit
Decide on incentive structure
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PORT INCENTIVE PROGRAM – COSTS
3
• Benchmark historical vessel arrivals to estimate potential cost implications for the port incentive program
Partnering for Sustainable Ports
RightShip provides detailed benchmarking and analysis report
Identify approximate number of vessels for incentive program
Estimate cost implications of incentive program
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PORT INCENTIVE PROGRAM – APPROVAL
4
• Port internal approval process– determine incentive program costs, administration, communication and operational requirements
Partnering for Sustainable Ports
Internal incentive program approval
Internal budgetary approval
Name & start date of the incentive program
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PORT INCENTIVE PROGRAM – MEDIA RELEASE
5 • Develop a joint media plan and schedule for press release
Partnering for Sustainable Ports
Develop a joint media plan
Media release schedule
Port website and newsletter
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PORT INCENTIVE PROGRAM – GO LIVE
6
• Implement environmental incentive program, including ongoing monitoring and program reviews
Partnering for Sustainable Ports
Training of port personnel on SVIS
Implementation by port administration
Ongoing monitoring
Periodic review
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Key benefits for ports
• Reduced emissions in port & the voyage
• Increase cargo volumes – reduce GHG
emissions
• Monitor and track emissions per call
• Public image / stakeholder relations
• Health benefits – all stakeholders
PARTNERING FOR CHANGE Incentivizing Sustainable Shipping
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RECENT INITIATIVES
Port Emissions Portal
• Partnering with AUSMEPA
• Satellite tracking & big data approach
• One of 10 finalists receiving $250K - $750K
funding for 2016 Google Impact Challenge
https://impactchallenge.withgoogle.com/au
stralia2016/charity/ausmepa
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www.rightship.com @RightShip_ RightShip
Partnering for Sustainable Ports