ICS tells COP19 that ‘reducing CO2 is economic no brainer

According to ICS, further efforts by the industry to improve fuel efficiency and reduce CO2 emissions from ships – which carry about 90% of global trade – is already a matter of enlightened self interest.

ICS says that fuel is the shipping industry’s largest variable operating cost. Rising fuels costs are expected to increase further by between 50% and 100% with the introduction of lower sulphur requirements.

“The fuel costs for a typical ship carrying iron ore are already about US$3 million a year. For the latest generation of mega containerships they could be as much as US$30 million a year” said ICS director external relations, Simon Bennett. “The high cost of fuel means that market forces are already providing shipowners with every incentive they need to continue improving their fuel efficiency and reduce their CO2 emissions. Otherwise shipping companies will simply not survive.”

In addition to the new IMO regulations to improve the efficiency of new ship designs, the mandatory application of Ship Energy Efficiency Management Plans is now giving additional impetus to fuel efficiency measures that are already being taken by much of the industry.” said Mr Bennett. This includes measures such as operating ships at slower speeds, and adjusting trim.

The industry remains committed to further measures to improve fuel efficiency from ships. The immediate focus at IMO is the development of a mandatory system for monitoring and reporting of the fuel consumption and CO2 emissions by every individual ship. ICS is to make a detailed submission to IMO with respect to a possible way forward that might be acceptable to both developed and emerging economies.