"Carbon Positive to achieve great GHG reductions using emissions trading in shipping"
Helena Athoussaki, CEO Carbon Positive
ELNAVI magazine, Greece
January 2011 issue

As it’s known the shipping industry has been heavily regulated during the last years regarding environmental protection issues. Recently a new challenge has been added. It is the reduction of air pollution from ships.

Carbon Positive recognizing the need of ship-owners to efficiently manage the regulatory burden of emissions control and more specifically to cut the green house gases (GHGs) supports the emissions trading system.
This is an internationally accepted programme which gives more flexibility and an incentive to cut emissions and increase profits by selling the excess reductions. This changes pollution control from a cost centre to a profit centre.
Ms Helena Athoussaki, CEO of Carbon Positive, explains exclusively to ELNAVI the benefits of emissions trading system and describes Carbon Positive activities and future plans.

- What is your company’s proposal for the reduction of air pollution CO2, SOx, NOx and other greenhouse gases?

Carbon Positive is proposing ship-owners be recognized for early action to cut GHGs under future regulatory regime.
We are looking to work with interested parties in shipping on a family of experiments to demonstrate the value of emissions trading for shipping.
There are many simple and low-cost, even revenue-positive, opportunities to reduce emissions in shipping not being pursued. Emissions trading produces a financial incentive to do so.
By implementing these reductions as part of a credible, internationally-accepted programme, verified ‘credits’ can be created which have a market value when traded, or a regulatory value against future regulatory liabilities when held.
We’re primarily focusing on GHG but we see the same principles applying to SOx and NOx.

- Do you agree with the idea of an international levy on marine fuels or the introduction of an emissions trading system helping cut CO2 emissions?
Carbon Positive understands that a bunker levy appears a simpler solution to regulation, however, we support emissions trading over a bunker levy because experience tells us that in the long term this offers the industry a lower cost of compliance and more flexibility in how emissions are reduced.
A bunker levy is a tax and puts the focus on the wrong objective, i.e. raising money, while emissions trading puts focus on the environmental outcome; by ensuring a given level of emissions reductions.
A tax on fuel offers fewer options for reducing emissions, e.g. end of pipe/exhaust controls don’t reduce tax obligation. Emissions trading opens up the field to all and allows ship owners to pursue whichever is cheaper or more preferred for them.
A tax is just a cost item – but emissions trading cuts costs and can also increase profits – ship-owners have an incentive to cut emissions more than required and sell the excess reductions. This changes pollution control from a cost centre to a profit centre.
Ship-owners that can’t cut emissions, or don’t want to, also benefit from emissions trading: by buying lower cost emissions reductions from the profit-makers that they might not be able to achieve themselves.
This is why emissions trading offers the most flexible and lowest-cost way overall to cut emissions across the whole sector.

- Do you support the use of distillate fuels, and why if not?

Carbon Positive does not have a view one way or the other on technologies or fuel types, these are decisions for ship operators and owners, and the answer will be different for different shipping operations.
What we do know is that there are many options for cutting emissions and a range of options to cut emissions still using fossil fuels.
Basically three categories of options: Efficiency measures, fuel switching, exhaust scrubbing – we are neutral on each.

- Describe your company’s sales network worldwide and your clientele profile?

We have a presence in Europe, North America and Australia and we are a team with more than 25 years experience in GHG emissions trading and regulation; in land-based industry, bio-energy and forestry project development and investment.
Now we see the opportunity to apply our skills and experience in shipping.
We are very well connected and able to put together expert teams for emissions reduction consultancy – engineers, financial analysts, mathematicians, verifiers etc.

- What is your commercial policy in Greek Shipping as Greek ship-owners are more cautious to new management and technological solutions?

We are about caution ourselves – insurance, insulation, risk management against the sizable potential burden of GHG compliance.
In this regard, Greek ship-owners have as much to gain, or to save, by working with us as any other part of the shipping sector.
The reality is that regulation is coming – it’s inevitable and those who manage the risks sooner rather than later will be financially better off when it comes.

- Can you refer to your company’s latest activities during 2010 and what are your plans for 2011?

Carbon Positive helps shipping learn, prepare and act. We are formulating an experimental program to produce emissions reductions for ship owners/operators and have them recognised under international carbon market rules.
In this way, we want to see those operators who take part and act on emissions rewarded for their early action.
First stakeholder consultations are to take place in early 2011.
We want ship-owners and charterers to play a central role in developing this program – only then will it work for the industry and the environment.

View the published article by clicking here