Report: Shipping would profit from 20 per cent emission reduction

The global shipping sector could slash its greenhouse gas emissions by at least a fifth at no net cost to the industry, according to a new report from the International Maritime Organisation (IMO).

The study – which is to be presented at a meeting in July of the IMO's Maritime Environment Protection Committee intended to finalise the sector's position ahead of the UN's climate talks in Copenhagen – argues that the wider roll out of various fuel saving measures can help the industry cut costs and carbon emissions.

"A significant potential for reduction of [greenhouse gas emissions] through technical and operational measures has been identified," the report states. " These measures could increase efficiency and reduce the emissions rate by 25 per cent to 75 per cent. There is a range of measures whose cost efficiency is negative. That means that these measures are profitable even when CO2 emissions have no price."

A spokesman for the IMO said technical innovations – such as improved hull and propeller designs, as well as operational measures such as so-called "slow steaming" whereby ships operate at slower speeds – can all serve to improve fuel efficiency.

The report also argues that incorporating shipping into a global emissions trading regime or imposing a levy on Bunker Fuel would represent "efficient and cost-effective" means of delivering further cuts in shipping emissions.

The IMO spokesman said there was now growing acceptance across the industry that some form of "market-based mechanism" will be required for putting a price on carbon emissions, adding that the issue would be discussed at the meeting in July.

The report was welcomed by Peter Lockley, head of transport policy at WWF-UK, who argued that it underlined the fact that the global shipping industry should be included in emission reduction targets.

"The shipping industry, currently responsible for more greenhouse emissions than the UK or Canada, now has no excuses for remaining outside international emissions reductions frameworks," he said. "This report confirms that shipping is a substantial source of emissions, but also demonstrates that the industry has nothing to fear from joining the global climate regime, and could actually make financial gains if it gets serious about addressing its carbon emissions."

The report warns that without new climate change policies, ship emissions are expected to grow by between 150 and 250 per cent by 2050 as a result of increased shipping.