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Page 1 INCENTIVIZING SUSTAINABLE SHIPPING Veracruz 20 th October 2016 Partnering for Sustainable Ports
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INCENTIVIZING SUSTAINABLE SHIPPING - portalcip.orgportalcip.org/wp-content/uploads/2016/06/20-Oct-2016-OAS-CIP... · •Ship vetting & risk management ... • Charter party key factor:

Jun 26, 2018

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Page 1: INCENTIVIZING SUSTAINABLE SHIPPING - portalcip.orgportalcip.org/wp-content/uploads/2016/06/20-Oct-2016-OAS-CIP... · •Ship vetting & risk management ... • Charter party key factor:

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INCENTIVIZING SUSTAINABLE SHIPPING

Veracruz

20th October 2016

Partnering for Sustainable Ports

Page 2: INCENTIVIZING SUSTAINABLE SHIPPING - portalcip.orgportalcip.org/wp-content/uploads/2016/06/20-Oct-2016-OAS-CIP... · •Ship vetting & risk management ... • Charter party key factor:

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. . . IN A SENTENCE!

Partnering for Sustainable Ports

RightShip is an innovative

organization with a social conscience,

best known for our work on maritime

safety.

We also have a growing reputation for

our work in environmental

sustainability.

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• Independent company formed in 2001

• Ship vetting & risk management

• GHG Emissions Rating & Enviro Score

RIGHTSHIP

Partnering for Sustainable Ports

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Page 4 Page 4 2015 IN A NUTSHELL

• 37,999 vets – 2,152 (6%) from 2014

• 11,329 petroleum vets – 1,970 (21%) from 2014

• 3.34b DWT vetted – 183m (6%) from 2014

• 156,813 login sessions – 11.3k (7%) from 2014

• 2,487 inspections – 579 (19%) from 2014

– 609 Dry – 21 (3%) From 2014

– 1,878 Petroleum – 558 (23%) from 2014

Partnering for Sustainable Ports

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Issue with Shipboard Emissions

GHG emission Rating & EEDI/EVDI

Efficiency Savings – verified!

Why - Port Incentive Program

Elements of a P I P

Conclusion

Partnering for Sustainable Ports

TODAY’S DISCUSSION

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Page 6 Partnering for Sustainable Ports

SHIPPING’S GROWING EMISSIONS PROBLEM

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Chin a

U S A

Russian Fed.

India

Japa n

G lobal F lee t

G erman y

Canad a

Uni t ed K ingdo m

0 2 4 6 8

Emissions (Gigatons CO2)

Global shipping – amongst the world‟s largest carbon dioxide emitters

CONTEXT OF MARITIME EMISSIONS

Partnering for Sustainable Ports

Data Sources: Third IMO GHG Study (2014), UNFCCC COP21 (2015)

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International Maritime Organisation‟s „Energy Efficiency Design Index‟ (EEDI)

• Ships built after 1 January 2013

• ~5,000 ships regulated by EEDI

• ~70,000 existing ships not covered by regulation

• Lack of clarity into individual ship efficiency

• ‘One-size-fits-all approach’

Incentivizing Sustainable Shipping

IMO DEFINES EFFICIENCY

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CALCULATING THE A-G GHG EMISSIONS RATING

100,000 DWT

Bulker 90,000 DWT

Bulker

10% smaller in DWT 10% larger in DWT

4.334 4.064 4.334 3.689 4.459 4.334 3.994 4.007 3.742 4.401

4.159

1 2 3 4 5

EVDI / EEDI

Calculate EVDI Log

Value

Apply Weights to Log Values

Calculate Z-Score

GHG Emissions

Rating

110,000 DWT

Bulker

Partnering for Sustainable Ports

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GHG EMISSIONS RATING

Robust Methodology: DNV GL reviewed

Easy to use, understand

Corporate Social Responsibility, transparency

Reduces CO2 & associated emissions

Cheaper to run: Tyndall research

Free of charge: www.shippingefficiency.org

Partnering for Sustainable Ports

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Page 11 Page 11 Incentivizing Sustainable Shipping

DOES IT PAYS TO BE GREEN?

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METHODOLOGY

Incentivizing Sustainable Shipping

CASE-BY-CASE ASSESSMENT

vs.

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METHODOLOGY

Incentivizing Sustainable Shipping

FUEL CONSUMPTION – CO2 EMISSIONS

Single Voyage and Long Term Time Charter

Chartered vessel

• AIS tracking (satellite) utilized

• Origin and destination of journey

• Speed and distance

„Replaced‟ vessel

• Design particulars

• Estimate journey

Methodology: ~3rd GHG Study

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RESULTS

Incentivizing Sustainable Shipping

AVERAGE SAVINGS: 5.2% – 8.6%

Case-by-case assessment

• 247 cases assessed

• 136 cases suitable for comparison

Fuel Consumption and CO2 Savings

• Majority of individual cases achieved savings

• Charter party key factor:

– Size / utilization

– Speed (design speed) Shipmap.org

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“Explicitly considering fuel

efficiency in chartering

decisions offers significant

fuel, financial, and emissions

savings”

CONCLUSION

Incentivizing Sustainable Shipping

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SUSTAINABLE VESSEL SELECTION PAYS

Partnering for Sustainable Ports

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PORT INCENTIVE PROGRAM

Partnering for Sustainable Ports

In Americas . .

Implemented in Vancouver & Port Prince Rupert

Working with Lazaro Cardenas, Ensenada, Port of Quebec

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HOW DOES THE PROGRAM WORK?

Vessel Verifies data & agent applies for discount

Port verifies eligibility from RightShip Database

Port issues incentive

Port determines incentive program to reward energy efficient vessels

1

2

3

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PORT INCENTIVE PROGRAM – 6 STEP ROADMAP

1 • Initial engagement with ports to scope will and capability to offer incentives

2 • Overview of structure and benefits within a environmental incentive program

3 • Benchmark historical vessel arrivals to estimate potential cost implications for the

port incentive program

4

• Port internal approval process – determine structure of incentive program including cost, administration, communications and operational requirements

5 • Develop a joint media plan and schedule for press release

6 • Implement environmental incentive program, including ongoing monitoring and

program reviews

Partnering for Sustainable Ports

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PORT INCENTIVE PROGRAM – SCOPE

1

• Initial engagement with ports to scope will and capability to offer incentives

Partnering for Sustainable Ports

Sign MOU with RightShip as facilitated by OAS - CIP

Provide historical list of vessels calling at port for the last two years

for analysis (date of arrival, date of departure, IMO #, DWT, ship type

and vessel name)

RightShip provides detailed analysis within four weeks

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PORT INCENTIVE PROGRAM – STRUCTURE & BENEFITS

2 • Overview of structure and benefits in the Incentive Program

Partnering for Sustainable Ports

Review analysis of the vessel calls

Determine eligibility for discount/benefit

Decide on incentive structure

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PORT INCENTIVE PROGRAM – COSTS

3

• Benchmark historical vessel arrivals to estimate potential cost implications for the port incentive program

Partnering for Sustainable Ports

RightShip provides detailed benchmarking and analysis report

Identify approximate number of vessels for incentive program

Estimate cost implications of incentive program

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PORT INCENTIVE PROGRAM – APPROVAL

4

• Port internal approval process– determine incentive program costs, administration, communication and operational requirements

Partnering for Sustainable Ports

Internal incentive program approval

Internal budgetary approval

Name & start date of the incentive program

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PORT INCENTIVE PROGRAM – MEDIA RELEASE

5 • Develop a joint media plan and schedule for press release

Partnering for Sustainable Ports

Develop a joint media plan

Media release schedule

Port website and newsletter

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PORT INCENTIVE PROGRAM – GO LIVE

6

• Implement environmental incentive program, including ongoing monitoring and program reviews

Partnering for Sustainable Ports

Training of port personnel on SVIS

Implementation by port administration

Ongoing monitoring

Periodic review

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Key benefits for ports

• Reduced emissions in port & the voyage

• Increase cargo volumes – reduce GHG

emissions

• Monitor and track emissions per call

• Public image / stakeholder relations

• Health benefits – all stakeholders

PARTNERING FOR CHANGE Incentivizing Sustainable Shipping

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RECENT INITIATIVES

Port Emissions Portal

• Partnering with AUSMEPA

• Satellite tracking & big data approach

• One of 10 finalists receiving $250K - $750K

funding for 2016 Google Impact Challenge

https://impactchallenge.withgoogle.com/au

stralia2016/charity/ausmepa

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[email protected]

www.rightship.com @RightShip_ RightShip

Partnering for Sustainable Ports

[email protected]