Issue Summary

There are several aspects to the air emissions issue: the recently adopted revisions to MARPOL Annex VI controlling the emission of SOx and NOx; and the reduction of green house gases from ships which itself can be split into two distinct policy areas - technical and economic measures.

Intercargo Policy

Intercargo is supportive of practical measures to reduce air emissions and works with policy makers and the wider industry to introduce cost effective measures that will effectively reduce emissions, maintain the levels of safety and not distort trade. Intercargo supports the development of such measures at the IMO and believes any measure should be equally applicable to all ships.

Summary of Recent Developments (see below for full briefings)

Annex VI

The revised Annex VI was adopted at MEPC 58 in October 2008. The latest meeting, MEPC 59 in July 2009, developed further supporting information and guidelines with regard to: survey and certification, fuel oil sampling, exhaust gas cleaning systems and port state control.

In addition a proposal for a 200 nm Emission Control Area for the coastal waters of the United States and Canada was approved at MEPC 59 and adopted at MEPC 60 (March 2010) it will enter into force on 1 August 2011 and the ECA status will become applicable on 1 August 2012. It means that ships entering these sea waters will need to use a fuel with a sulphur content of maximum 1.0% from 1 August 2012 to 31st December 2014 and from 1 January 2015 a fuel with a sulphur content of maximum of 0.10%.

GHG Technical Measures

The IMO has been developing several technical measures over the last few sessions of its Marine Environmental Protection Committee (MEPC). At MEPC 59 in July 2009, the following were published: Interim guidelines on the method of calculation of the Energy Efficiency Design Index (EEDI) for new ships; Interim guidelines on the voluntary verification of the Energy Efficiency Design Index (EEDI); Guidance in the development of a Ship Energy Efficiency Management Plan (SEEMP, formally SEMP); Guidelines on the voluntary use of the Energy Efficiency Operational Indicator (EEOI).

MEPC 60 (March 2010) agreed to hold an inter-sessional working group to discussion the technical detail further (expected to be held June 2010).

GHG Market Based Measures

MEPC 59 had an in depth discussion on market based measures considering the concepts proposed: the Danish proposal for a ‘compensation fund’ raised from a fuel levy; various types of emission trading schemes; and a new proposal from the US on the establishment of mandatory efficiency standards for new and existing ships utilising the Energy Efficiency Design Index (EEDI).

The issue (including new submissions) was considered further at MEPC 60 (March 2010) where it was agreed to form a group of experts to consider the various MBM proposed. This group will report to MEPC 61 to be held in Sept/Oct 2010.