ICS Chairman Sets Out Plan for CO2 Reduction by Shipping Sector

IMG_1292The Chairman of the International Chamber of Shipping, Esben Poulsson, has set out what the industry would like the International Maritime Organization to achieve as part of its CO2 reduction strategy for the shipping sector.

Speaking in Indonesia today at The Economist magazine’s World Ocean Summit, Mr Poulsson feared that unless IMO makes significant progress the industry could be vulnerable to regional action, not only from the EU – which is considering incorporating shipping into the EU Emissions Trading System – but also from Canada or California, which have already introduced carbon pricing.

“We are confident IMO can adopt an ambitious strategy by 2018 matching the spirit of the Paris Agreement.  However, IMO needs to agree a baseline year for peak CO2 emissions from shipping, as well as setting out some serious long term aspirations for dramatically cutting the sector’s total CO2 by the middle of the century” said Mr Poulsson.

ICS stresses that IMO should adopt objectives for the entire sector, not for individual ships, in the same way that governments have already agreed CO2 commitments for their national economies under the Paris Agreement.  IMO also needs to agree a mechanism for delivery which ICS would like to see in place by 2023.  If IMO decides to develop a Market Based Measure, ICS says that the clear preference of the industry is for a bunker fuel levy.

Mr Poulsson added that any IMO goals that are sufficiently ambitious to allow shipping to play its part in achieving the United Nations ‘2 degree’ climate change target should also be realistic.  “Ambitious CO2 reduction objectives will only be achievable with alternative marine fuels which do not yet exist, although we are very confident that they will be available in the not too distant future” observed Mr Poulsson.

Widespread availability of alternative fuels (such as hydrogen or fuel cells) is not expected for at least another 20 or 30 years.  ICS says the sector’s total CO2 has already been reduced by more than 10% between 2007 and 2012.  But projections for trade growth – over which the industry has no control, due to population growth and improved global living standards – suggest that dramatic reductions in the sector’s total CO2 will be difficult to achieve in the immediate future until alternative marine fuels become widely available.

In the meantime, ICS argues that any CO2 reduction goals agreed by IMO must also address the legitimate and valid concerns of developing nations about the potential impacts on trade and sustainable development.  According to the United Nations, 60% of maritime trade now serves developing nations.

The Swedish Club Delivers on a Firm Foundation

Swedish-Club-2At the closure of the renewal season The Swedish Club is pleased to report performance in line with expectations and consistent with its strategy of balanced growth on a firm foundation.

Gross tonnage is anticipated to post a 4 to 5 % increase in this policy year, which is coupled with the 8 % growth experienced in 2016. This is the second year in a row The Swedish Club will deliver a zero percent increase to its members.

Lars Rhodin, Managing Director of The Swedish Club says: “We have closed this renewals period on a sound footing, enabling us to continue to support the needs of our members and to deliver on our promise of focusing on quality growth”.

 

ICS Releases Latest Flag State Performance Table

Flag State Table 2017 Cover ImageThe International Chamber of Shipping (ICS) has published its latest Flag State Performance Table which can be downloaded free of charge via the ICS website.  See www.ics-shipping.org/docs/flag-state-performance-table

The ICS Table provides an annual overview of the performance of the world’s flag states against a number of criteria such as port state control records, ratification of international maritime Conventions and attendance at IMO meetings.  The Table is mainly intended to encourage shipowners and operators to maintain an open dialogue with their flag administrations with respect to any improvements that might be necessary.

ICS Director of Policy & External Relations, Simon Bennett, said:

“This year’s ICS Table continues to highlight the sound performance of all of the world’s major flag administrations, regardless of whether they are open registers or so called ‘traditional’ maritime flags.  But in response to feedback from IMO Member States, our member national shipowner associations have agreed to some further refinements in order to make the Table as objective and useful as possible.”  

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EU Member States Must Reject Euro Parliament’s Proposal Ref Global Shipping into Regional CO2 System

The International Chamber of Shipping (ICS) – which represents over 80% of the world merchant fleet – says it is ‘disappointed but not surprised’ by today’s vote in the European Parliament to propose that international shipping (including non-EU flag ships) should be incorporated into the EU Emissions Trading System from 2023.

“This vote for a unilateral, regional measure simply risks polarising debate among IMO Member States which have already agreed to develop a strategy for reducing shipping’s CO2 emissions in line with the goals of the Paris Agreement on Climate Change”. said ICS Director of Policy & External Relations, Simon Bennett.

“The vote completely ignores the real progress that has already been made by IMO – which under the Kyoto Protocol, to which EU Member States are signatory, has a mandate to address CO2 emissions from international shipping.”

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The Armitt Group Appoints Finance Director

Paul HoldenRespected UK shipping agent and specialist logistics company the Armitt Group, has appointed Paul Holden as its new Finance Director.

Mr Holden has over 20 years’ experience in a series of senior financial management positions most notably as Finance Director at Dobson Crowther Ltd, a specialist print and packaging manufacturer, where he led an MBO of the business securing £3.5m acquisition funding from Royal Bank of Scotland.

Immediately prior to joining the Armitt Group, he was Financial Consultant to Inspirepac Ltd, a £50M manufacturer of high quality packaging products, where his responsibilities included business development as well as enhancing the company’s financial control and group reporting systems.

Charles Gray, Managing Director of the Armitt Group, said, “I am delighted to welcome Paul to the Armitt Group and am confident that his experience and skills will help to refine and improve the Group’s financial mechanisms.”

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