Jan Kopernicki, President of the UK Chamber of Shipping and Vice President of Shell Trading & Shipping, gave a keynote speech in late June at Smith School’s World Forum on Enterprise and the Environment in Oxford.
The title of the speech was: 'Low-Carbon Shipping - excitement, leadership and action'. Speaking with his British shipping chamber hat on, Kopernicki argued that “if shipping is to continue its leadership role in addressing the global emissions challenge, and carbon in particular, we can't just focus on what's possible today…”
“The shipping industry is busy on three different time horizons – short, medium and long term. And we're taking a wider perspective on emissions, to cover the whole logistics value chain rather than simply shipping. An important part of this is energy efficiency – staying constantly focused on using less as well as emitting less, through a combination of technical and operational means. However, it will be very difficult – if not impossible – to land all these things effectively unless we have carbon market mechanisms Carbon trading provides more certainty about environmental outcomes. It encourages shipping companies to find the most cost-effective and carbon-efficient solutions. And it resonates with existing and progressing legislative changes around the world.
“That’s why shipping has led the way in consistently calling for emissions trading to be a global scheme, rather than a regional one. At the Chamber of Shipping, we have developed a cap and trade model that complies with all the IMO principles for a global system to encourage emissions reductions.
“Our model is quite straightforward. At least initially, there would only be a cap on CO2; monitoring would apply to all CO2 emissions from fuel, regardless of where it was used on board; and CO2 emissions would be calculated in a transparent way. The ‘responsible’ entity would be either the technical operator or the owner (if the ship is directly managed by the owner).
“One emissions allowance would be equivalent to one tonne of CO2; carbon credits could be auctioned or sold, depending on the nature of the company’s fleet; and every vessel would be required at all times to carry the documentation that shows compliance.
“Our model is designed to be effective – because it’s outcome focused. It’s equitable – because it would be administered globally and apply to all ships of all flags operating internationally above a certain tonnage size set by the IMO. What we’re proposing would promote change, by rewarding efficiency improvements on existing ships and new technology on new ships, through the operation of the market.
“This is one of the ways in which today’s shipping industry is playing its part, as well as through investment, research and development, to deliver low-carbon mobility. But we can’t do it on our own. So we look forward to working with governments and other stakeholders in the forums and alliances that are at the heart of providing the future our children, and our children’s children, deserve…”
Read the full speech at the Shell website