The proposal is for the IMO to apply vessel efficiency design standards for both new and existing vessels in the world's fleet.
Newly built vessels would be subject to mandatory efficiency standards requiring them to be built with features and technologies that further improve the energy efficiency to reach defined levels. These standards would be similar in nature to the fuel efficiency standards required of cars and trucks in many countries around the world today. The standards would also be tiered with higher standards required over time as technology developments allow further improvements.
Under the Vessel Efficiency System (VES) proposal, existing vessels would also be subject to improved efficiency standards. Although these standards would be less aggressive, they would also be tiered over time. Establishing efficiency standards for existing vessels is important since they operate for 25 - 30 years before being recycled.
Under the VES proposal, existing vessels that meet the established efficiency standards would operate free of any fees, whilst those that fail to meet the standards would be subject to a fee assessed for each ton of fuel consumed. Fees would be deposited into a fund managed by the IMO.
"The IMO achieved significant success recently in reaching a legally-binding global agreement that will dramatically reduce NOx, SOx, and particulate matter emissions from ships around the world," said Council CEO Chris Koch. "It is appropriate for the IMO to build on that success and establish an international regulatory system that can reduce carbon emissions as well."
Greenhouse gas emissions and their effect on climate change have been the subject of intense study and debate. Recent discussions by world governments in Copenhagen did not produce a legally binding global agreement, and, given the notable differences on key issues, it appears that such an agreement would be very difficult to reach in the near-term.
The Copenhagen debate did, however, reveal a broad consensus on the need to pursue greater energy efficiency across the world and across multiple industrial sectors. Focusing on improved efficiency is appropriate for the transportation sector generally, as noted in a separate paper about emissions policy submitted to the IMO by the World Shipping Council.
The VES proposal shares the same strategic focus of rewarding improved vessel efficiency as proposals recently made at the IMO by Japan and the US. The VES would also provide for a Greenhouse Gas (GHG) fund that could be used for carbon efficiency research and development and other carbon reduction initiatives.
