E MARINE ENVIRONMENT PROTECTION COMMITTEE 69th session Agenda item 7 MEPC 69/7/2 12 February 2016 Original: ENGLISH REDUCTION OF GHG EMISSIONS FROM SHIPS International shipping's share in international efforts to limit the rise of global average temperature Submitted by Belgium, France, Germany, the Marshall Islands, Morocco and Solomon Islands SUMMARY Executive summary: International shipping is called upon to contribute its fair share to the international community's efforts to curb greenhouse gas (GHG) emissions. The co-sponsors invite the Committee to develop a work plan to define this fair share. Strategic direction: 7.3 High-level action: 7.3.2 Output: 7.3.2.1 Action to be taken: Paragraph 12 Related documents: MEPC 59/24: MEPC 67/INF.3 and MEPC 68/5/1 Background 1 On 12 December 2015 in Paris, the international community agreed to common objectives in order to adapt to climate change and mitigate its impact. State parties notably emphasized the urgent need for measures to hold "the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels" and committed themselves to "aim to reach global peaking of greenhouse gas emissions as soon as possible" and "to undertake rapid reductions thereafter" (UNFCCC Paris Agreement, Articles 2.1 (a) and 4.1). The Agreement will be open for signature in New York from 22 April 2016. 2 The Organization (IMO) has been taking steps to mitigate climate change for two decades and took first measures to reduce carbon dioxide emissions from a sector that is, in general, the most energy efficient mode of transport (as shown in document MEPC 68/INF.24). https://edocs.imo.org/Final Documents/English/MEPC 69-7-2 (E).docx MEPC 69/7/2 Page 2 Indeed, IMO, in July 2011, adopted the Energy Efficiency Design Index (EEDI) for new ships and the Ship Energy Efficiency Management Plan (SEEMP), which will contribute to reduce GHG emissions from shipping (compared to business as usual scenarios). Furthermore, the Marine Environment Protection Committee (MEPC) is currently discussing a data collection system that will provide information on the emissions from maritime shipping on an annual basis. 3 Nonetheless, many studies project a further increase of GHG emissions within the next decades. Therefore, the international maritime sector is called to make further efforts. This effort, or fair share, is yet to be defined by IMO. Proposals on this were submitted in the follow up of the IMO Assembly in 2003. A general work plan and an associated timetable was then requested and developed at MEPC 55. In the follow up, some delegations submitted methods to define international shipping's share (e.g. MEPC 59/4/24), but no decision has been taken by the Committee so far. More recently, at MEPC 68, the Marshall Islands invited the Committee to continue discussions on how to define shipping's share (MEPC 68/5/1). This document also addressed other aspects, but it is not the intention of the co-sponsors to address all aspects in this document. Notably, issues specific to the Least Developed and Small Island Developing States will need to be carefully considered. Shipping's fair share in the reduction of global GHG emissions 4 Current global climate change efforts are based on the contribution of countries. Due to the international nature of shipping, this kind of national approach is not suitable for the shipping sector. Yet, the emissions of the shipping sector cannot continue to develop unabated without jeopardizing the goals to reach global peaking of GHG emissions as soon as possible and stabilizing global temperature increase well below 2°C. 5 In the view of the co-sponsors, now is the right time to go about defining the maritime sector's fair share in the "global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty" (UNFCCC Paris Agreement, Article 2.1). We feel encouraged by the last Conference of the Parties of the Framework Convention on Climate Change (UNFCCC), the spirit of cooperation shown in Paris, the commitment of 196 Parties to the UNFCCC to mitigate climate change and the text adopted. The co-sponsors therefore invite the Committee to initiate the relevant proceeding to define the fair share of the international maritime sector in the global reduction efforts of the international community to keep the increase in global average temperature well below 2°C above pre-industrial levels. We also invite the Committee to determine how to support global efforts to keep the increase in global average temperature to 1.5°C above pre-industrial levels. 6 The co-sponsors are convinced that the definition of the required share in emission reductions should be based on a careful analysis and therefore that a work plan is needed to help the Committee to take on a structured approach and progress smoothly. 7 The co-sponsors are of the view that the following aspects should be included in a work plan for development, discussion or decision: .1 the methodology to be used to define the required emission reduction effort of international shipping; .2 the type of GHGs that should be covered; .3 the reference years; .4 the long-term objective; and .5 the intermediary steps. https://edocs.imo.org/Final Documents/English/MEPC 69-7-2 (E).docx MEPC 69/7/2 Page 3 8 The long-term objective would give a clear signal to the whole sector, create investment stability and stimulate research and development. Intermediary steps would allow for verification as to whether the emissions from the sector are on a correct path. A draft work plan taking into account all these aspects and providing an associated timeline is proposed in the annex to this document. 9 Due to the accumulative nature of the GHGs in the atmosphere, the later the global peak the more extreme the efforts that would be required afterwards from the sector, risking severe perturbations in the sector, the global economy and dramatic impact on the most vulnerable countries. Therefore, any work plan should show medium-term results. 10 This work plan does not interfere with the MEPC's agreed three-phase approach (MEPC 68/21, paragraph 4.8) or the deliberations on the data collection system. The efforts to define a fair share should be one part of an overall strategic approach to tackle the GHG emissions of the shipping sector. While the data collection system can be consulted in the future as an up-to-date inventory, it need not necessarily play a role in defining the fair share. The proposal brought forward with this submission does not affect the course of any other current efforts. Conclusion 11 The global response to the threat of climate change can only be effective when all sectors contribute. The limitation of the global average temperature increase can only be a joint global effort; all sectors are called upon to play their part and contribute with a fair share. If the shipping sector's emissions were not adequately addressed, the burden on other sectors would increase resulting in higher mitigation costs for those sectors. Similarly, the effects of inaction will inadvertently be worst for least developed and small island developing states. With a view to its importance for global trade, equity and fairness require international shipping to play its part and stand up to its global responsibility. We trust that IMO is the organization best equipped to take on this challenge. Action requested of the Committee 12 The Committee is therefore invited to: .1 agree that international maritime transport needs to define its share in the global efforts to reduce GHG emissions in accordance with the objectives of the UNFCCC Paris Agreement; and .2 develop a work plan with an associated timetable to define that fair share. *** https://edocs.imo.org/Final Documents/English/MEPC 69-7-2 (E).docx MEPC 69/7/2 Annex, page 1 ANNEX WORK PLAN FOR DEFINING THE SHIPPING SECTOR'S SHARE IN INTERNATIONAL EFFORTS TO LIMIT THE RISE OF GLOBAL AVERAGE TEMPERATURE Task 1. Selection of a methodology to define the fair share of maritime transport 1.1 Compilation of existing methods 1.2 Evaluation of methods 1.3 Selection of method 2. Type and scope 2.1 Discussion of time horizon (reference years, annual or aggregated objectives) 2.2 Discussion of scope (GHGs to be considered) 3. Defining the sector's fair share 3.1 Application of the methodology to define shipping's fair share 3.2 Adoption of a long-term objective and intermediary steps. *** Timing Submissions to MEPC 70 MEPC 70 MEPC 71 MEPC 70 MEPC 71 Submissions to MEPC 72 MEPC 72 *** An update of the GHG emissions from international shipping may be considered at one point in the decision process. The inventory of the data collection system can be consulted if agreed upon and implemented as a mandatory system. ___________ https://edocs.imo.org/Final Documents/English/MEPC 69-7-2 (E).docx