CLIMATE CHANGE MARITIME:
FOCUS ON TRANSPORT (part 1)
The IMO outbursts since 2020 began to lower the sulfur in the fuel, but as no one complied (only 3.4%), from there the search for alternatives: but the solutions never appeared and the effect of the high percentage of emissions in transport complicates much more than the 3% that are mentioned to the industry, wanting to make it seem insignificant, but it is not; contrary!.
THE PROBLEM
Given the lack of options to solve the problem, maritime transport is still a long way from reaching its destination with the appropriate solutions.
The real problem is the load of emissions that logistics has, the cause of the negative percentage that is printed product by product to the different loads that are transported.
The industries try to leave behind the emission measurements in Scope 1 and 2, but the problem is in “Scope 3, which is precisely the variable that adds a negative charge in external processes such as logistics to the transported products.”
UNFULFILLED PROMISES
The extra pollution is produced by the use of heavy or intermediate fuels (highly polluting on the planet), the promises of cessation of industry emissions increased in COP26 after the start of post-covid exports.
The IMO, I look for solutions with very low adoption, in low sulfur fuels like VLSFO and emissions scrubbers; that did not solve at all the problem that multiplied in CO2 loads per kilogram transported.
LACK OF KNOWLEDGE AND WRONG SOLUTIONS
The ignorance of the specialists when treating the maritime industry superficially is very great and vice versa, making it official that 3% of the emissions are only from the maritime industry; is the first mistake.
The correct calculation is made as follows:
1 ️ ⃣ A product generates emissions in the manufacturing process and that is charged directly to the finished product.
2 ️ ⃣ The average maritime transport consumes from 250 to 350 liters of intermediate fuel oil. (Public data from Technoton hardware, which is implemented in the world through Wialon “fuel control in cargo ships”).
3 ️ ⃣ The established average times of the delay from Shanghai to Los Angeles are 15 to 20 days. If we take 20 days and multiply it by the 24 hours that a day has, it gives us 480 hours of navigation.
4 ️ ⃣ We are going to multiply this result by the liters of consumption of the boat per hour (navigation only).
5 ️ ⃣ 480 hours times 300 liters per hour is 144 tons = 2880 metric tons of intermediate fuel oil that releases 0.777 kilos per ton.
6 ️ ⃣ This means that for each trip from Shanghai to Los Angeles, 2,238 tons of CO2 are emitted.
7 ️ ⃣ Equivalent to more than 50% of the emissions from the production of each product.
THE SOLUTIONS
From this result we look for the right tools to solve the problem.
PARAMETRIZE:
The rate of emissions produced by a product at source.
MONITOR:
The charges that are added for logistics emissions are more than 50% on average and double in some cases.
RESULT:
This result establishes a burden that the maritime industry must reduce.
SOLUTION:
The reduction of the standard product for supplying ships with GO (GUARANTEE OF ORIGIN).
“We are going to explain it in part 2 of the maritime emissions article”
THE REPERCUSSIONS OF IMO “SHOTS IN THE AIR”
This is talked about in the international trade industry, but particularly in the bunkering sector (authorized fuel for cargo ships).
“Regarding whether the proposals are real or are shots at the stars”.
LOGIC IS STRANGER THAN FICTION FOR IMO
IMO follows the instructions of the UN that does not have a specific area of International Trade.
So what would be the solutions?
From My Point Of View It Is A Start
Each load has a (polluting emissions load), which is measured.
This volume gives an equivalent that is adhered to the transported products and consequently affects Scopes 2 and 3 of climate compliance regulations.
“If the transport gives you more emissions in the transfer of the transported product, it violates the established trade rules.”
Generally the day after the meeting IMO it happens that they say; “We celebrate an international agreement to reduce emissions by 30% by 2030” signed by 60 countries or 100.
But by the year 2025 nothing will happen, since IMO does not understand in the slightest the transfer of emissions generated by its industry and focuses on reducing 3% of the global emissions that the industry has on the planet.
THE COP 30 IN BRAZIL WILL SET A TRUE PRECEDENT
I personally believe that the maritime industry should have a follow-up of the applications that are on consignment.
The problem is that they still don’t know them, they can say what they want, but they will never be fulfilled.
SOLUTION:
Everything is about bringing the solution closer to something that happens and is easy.
The contamination load in each product shipped.
In this way the sugar package (a % of emissions for transport is added).
SUBJECT TO A SIMPLE EQUATION:
1 What engines do they have?
2 What fuels did they use?
3 Average speed.
4 Travel time.
That gives you a result and it is printed on each sugar packet, (extra from its production).
In this way, multinational companies are fined, due to the rules of emissions standards in Commerce.
“This is going to cause the world of industries to put pressure on the shipping companies to comply with the law.”
HOW AMAZON DID
The emissions load on the products is measured.
If you add the equation that I tell you to, you have the extra that maritime transport generates in emissions in this case.
His way was intermodalism (the combination of various transports, which as a result provide savings, agility, schedule compliance and emission savings).
SYNTHESIS:
The industry must adapt in record time so as not to make the emissions burden of its customers more complex, and this pressure will begin to be generated in 2024, when the industries do not want to pay the emissions surcharge expressed in Scope 3.
The scope that nobody can reduce, which is linearly related to logistics.
CONCLUSION:
There is only one solution and that is to invest in direct decarbonization (the one caused by fuel for transportation).
But also of the inclusion of intermodalism as a necessary component of the achievement of all collective objectives.
AUTHOR:
DIEGO BALVERDE
ECONOMIST
EUROPEAN CENTRAL BANK
&
DELFINA FRERS
CEO BALGREEN
