Thursday, June 8, 2017

Shipping Groups Lambast US Climate Change Pull Out as China and EU Cooperate

Patchwork Solutions Will Not Resolve Global Problems
Shipping News Feature
EUROPE – CHINA – Following the decision of the United States to withdraw from the Paris Climate Agreement, the European Community Shipowners' Associations (ECSA) and the International Chamber of Shipping (ICS) have encouraged the European Union and China to intensify cooperation in achieving a global climate deal for shipping. Indications of such cooperation materialised during the 19th EU-China Summit held in Brussels last week, where EU and Chinese leaders reaffirmed their commitment to implementing the Paris Agreement on climate change. ECSA Secretary General Patrick Verhoeven commented:

"The withdrawal of the United States from the Paris Climate Agreement should not jeopardise an ambitious global strategy to reduce the CO2 emissions of shipping. We are therefore pleased that the EU and China appear to be working towards reinforced co-operation on delivering a climate agreement for shipping at the International Maritime Organization."

EU and Chinese leaders are apparently also looking forward to co-hosting, along with Canada, a major ministerial gathering in September to advance the implementation of the Paris Agreement and accelerate the clean energy transition.

In other global environmental news the upcoming IMO Marine Environment Protection Committee (MEPC) meeting will look at the IMO greenhouse gas (GHG) reduction strategy, with the organisation aiming to establish an initial strategy in 2018, which is to be finalised in 2023, after real-time data on carbon emissions from the global shipping industry have been collected and analysed. Ahead of the MEPC meeting, the global shipping industry, represented by four international ship owning organisations, submitted a proposal to keep total global CO2 emissions below 2008 levels, and then progressively cut annual total emissions from the sector by 2050, by a percentage to be agreed by IMO. ICS Secretary General Peter Hinchliffe, said:

“We call upon the EU and China, and indeed all IMO Member States, to support the industry proposals. The priority of governments should be to focus on the development of alternative, fossil-free fuels and IMO should assess whether holding CO2 below 2008 levels can be achieved with technical and operational measures alone.”

The ECSA and the ICS continue to express concern about unilateral measures that the EU, China and other regional powers may be contemplating. The European Parliament is notably pushing for the unilateral inclusion of shipping in the European Emission Trading Scheme (ETS). In a joint statement, Verhoeven and Hinchliffe, both commented:

"We remain firmly opposed to a patchwork of regional schemes that would distort international shipping markets while doing little to tackle the reduction of the global industry’s actual emissions. Imposing regional solutions will be counterproductive. It will anger developing nations that have agreed to participate in the IMO process despite their concerns about the implications for their economic development, making the prospect of a global agreement on truly meaningful CO2 reductions far more difficult if not impossible."