Tuesday, September 08, 2009: 06:03:52 PM

Shipping and Logistics – Guest Column

Is the international shipping community eager to handle climate change? - Ramesh Sridharan, New India Shipping Consultants (NISCON)

World’s highly acclaimed experts on climate change and business leaders will meet at Copenhagen in December 2009 to discuss measures undertaken by the global shipping community to regulate carbon emissions

The global shipping industry, which is considered as one of the biggest emitters of carbon in the world, was strangely left out of the Kyoto Protocol in 1997. Since then, it has raged many controversies in seminars and meetings pertaining to other industries, which were handed over stringent guidelines to control the emission of carbon.
 
Finally, after a long period of time, world’s highly acclaimed experts on climate change and business leaders will meet at Copenhagen in December 2009 to discuss the measures undertaken by the global shipping community and the regulatory bodies associated with it to regulate carbon emissions during the past 12 years.

 
However, leaving aside such controversies, it is interesting to note that the global shipping community is often heard saying that ships are the best mode of transportation in terms of carrying cargo as well as an economical way to beat climate change. To prove its point, the shipping industry has also cited research data of the Copenhagen Consensus Centre (CCC). According to CCC, around 1,900 fleets worth US$9 billion, currently criss-crossing the globe reflects approximately 1-2% of the total sun’s rays entering the Earth, thereby offsetting carbon emissions.
 
Incidentally, it was soon after the Kyoto Protocol received confirmation in 1997 that the International Maritime Organisation (IMO), the United Nations' specialised agency responsible for improving maritime safety and preventing pollution from ships, was called in for a special task. The IMO was handed over the job to conceptualise practical measures that will be applicable for all shipping companies across the world in a mission to stop climate change by cutting down the level of carbon emissions. Since then 12 years have passed, but there has been very little progress to formulate any enforceable standard, which the shipping industry can adhere to.
 
No matter what other industries have done to stop carbon emission following the Kyoto Protocol regulations, till now, the shipping industry has been practically left untouched by such regulations. At present, international shipping accounts for 3% of global carbon emissions, which is more than the total percentage of carbon emitted jointly by the UK or Canada. According to climate change leaders, if the shipping community does not act immediately, the percentage of carbon emitted by ships across the world would double by 2050.
 
Although initially the shipping industry was kept outside the purview of the Kyoto Protocol, gradually global leaders are realising the fact that it is one of the fastest growing carbon emitters in the world and has to be dealt with accordingly. Following this, the IMO's Marine Environment Protection Committee was assigned the task to come up with a workable solution.
 
However, several environmental charities and non-governmental organisations, which have been demanding the shipping industry to implement tangible measures to curb carbon emissions, have been disappointed. This is because, even the IMO Committee did very little to increase the cost of ship fuel or implement mandatory guidelines that could act as a preventive measure.
 
All this is delaying the process of formulating guidelines that could help the shipping companies undertake measures that would eventually help in controlling climate change.
 
Ramesh Sridharan, Senior Consultant, New India Shipping Consultants (NISCON), a maritime consulting firm in Nerul, New Mumbai

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