A range of big-name corporates have joined the Sustainable Shipping Initiative (SSI), a collaboration of NGOs and shipping-related companies that aims to ensure the long-term economic and environmental sustainability of the industry. SSI announced last week the addition of six new major industry players to the taskforce.
The new members represent a wide range of shipping industry functions: Cargill, which runs a charter fleet of more than 300 vessels; South Korea’s Daewoo Shipbuilding & Marine Engineering, one of the world’s biggest shipbuilders; Rio Tinto Marine, the shipping arm of the mining giant; marine insurer RSA; the Greek tanker operator Tsakos Energy Navigation; and Wärtsilä, which provides shipping solutions and equipment.
SSI’s new recruits will join founding members ABN Amro, BP Shipping, Gearbulk, Lloyd’s Register and Maersk Line in their efforts to coordinate a global effort to reduce the environmental impact of the shipping industry. Launched in September of this year, SSI’s stated target is to have an industry that is robust and profitable with a strong record of social and environmental responsibility by 2040.
NGO’s Forum for the Future and WWF are integrally involved in the groups’ efforts as well, and hope to aid the industry in its greening efforts.
“The Sustainable Shipping Initiative has set out to transform an industry which plays an essential role in global trade and affects the lives of billions of people,” said Jonathon Porritt, founder director of Forum for the Future. “The growing number of elite international companies coming on board shows that industry leaders understand sustainability is crucial to their future success.”
Long haul ahead
The initiative has its work cut out for it. The shipping industry creates approximately three to four per cent of global emissions - more than the aviation industry. That number is certain to increase, given that over ninety per cent of global trade uses shipping.
While international emissions regulations are in place for sulphur dioxide (SO2) and nitrogen oxide (NOx), no limits for CO2 emissions have been agreed.
The International Maritime Organization has been seeking a mandate to regulate CO2 emissions, both at climate change talks in Copenhagen and more recently at the talks in Cancun. But consensus has been held up by one of the same political issues that challenges broader climate talks: whether or not to apply the same requirements to developed and developing countries.
In October the adoption of a new Energy Efficiency Design Index (EEDI) that had already been approved in principle by the IMO was stymied by this same issue. The EEDI mandates the application of fuel efficient design features in all new ships.
Lack of international policy on greenhouse gas emissions has driven shipping businesses into action. The industry is going proactive in its energy efficiency measures by seeking more fuel efficient designs, emissions reduction technology, more efficient operating practices, and cleaner types of fuel.
Major international shipping port Singapore is doing its part to green the industry. In February, the Maritime and Port Authority of Singapore (MPA) announced the Centre for Maritime Energy Research, a research facility whose sole purpose is to develop new technologies to reduce emissions.
Another key research centre in Singapore is the Clean Technology Centre, established in June of this year by Norwegian company DNV. The Centre focuses on green shipping, offshore and port solutions in addition to more general clean energy and carbon solutions for urban areas.
One of the more intriguing developments out of Singapore for the shipping industry is Ecospec Global Technology’s CSNOx gas abatement system. It’s the first system that claims the ability to reduce a vessel’s CO2 emissions in addition to SO2 and NOx. Current systems, known as scrubbers, reduce the latter two, but not CO2.
Ecospec’s system is holding up well in independent testing, but it has yet to be proven as a viable choice for retrofitting existing vessels. Banking on its success, Wärtsilä signed an MOU with Ecospec in September for the system’s use in new vessels and possibly retrofitted vessels.
Another innovation of interest is the Air Cavity System, which was described in The Economist’s Technology Quarterly on December 11th (“Airships of the sea”). The system is used to retrofit the hulls of existing vessels to make them more fuel efficient. By creating a layer of air bubbles on the hull, a process known as air lubrication, the vessel experiences less resistance from the water. Fuel savings from the system are estimated at anywhere from seven to 15 per cent.
Industry incentives
Industry players have a number of different reasons for reducing their environmental impact. In addition to preparing for the inevitable emissions regulations on the horizon, companies want to take advantage of the huge savings to be made through energy efficiency measures such as reduced fuel costs.
Increasingly, more shipping companies, such as those in the SSI, are adapting comprehensive corporate policies meant to ensure long term sustainability for both the company and the environment.
Jaako Eskola, group vice president for Wärtsilä Ship Power said on Wednesday that Wärtsilä powers every third ship and services every second ship sailing the world’s seas. Providing sustainable solutions is the cornerstone of Wärtsilä’s commitment to the shipping industry.
“This initiative is an excellent opportunity for Wärtsilä to contribute to ensure that shipping remains the most sustainable way of transporting goods over long distances in the future,” he said.
The industry is feeling outside pressure as well. Earlier this month in Cancun, Richard Branson challenged the industry to clean up its act when he launched Shippingefficiency.org. The initiative consists of an on-line database that rates approximately 60,000 ocean-going vessels according to their ecological footprint.
The database, free to any user, is expected to influence decision-makers. With an increasing number of companies worldwide attempting to green their supply chain, the website has the potential to drive significant traffic towards environment-friendly shipping services and away from the worst emissions offenders.
As more and more major industry companies come on board the push for green shipping, it is inevitable that the worst of the polluters will be left in their wake. Forward thinking companies recognise that their long-term success depends on adapting early to environmental and regulatory conditions.
Richard Turner, Marine Director at RSA said: “The aim for RSA and Codan Marine, is to keep our customers’ business moving at all times. This fits well with the SSI agenda, to ensure that the shipping industry successfully navigates through the challenges of global trade and environmental change.”
