Transparency pressures and uptake in alternative energy sources…

Alternative Sources of Energy, Associations, Environment — By on April 14, 2015 at 3:49 PM

_DSC7171TRANSPARENCY PRESSURES AND UPTAKE IN ALTERNATIVE ENERGY SOURCES IDENTIFIED AS CATALYSTS TO SUSTAINABILITY PROGRESS

SSI report highlights developments across sustainability challenges and opportunities over the last three years

Singapore,  14 April 2015 – The Sustainable Shipping Initiative (SSI), a pioneering coalition of companies from across the global shipping industry focused on uniting commercial growth with sustainable behaviours, has identified that since 2012, industry progress has been driven by greater demand throughout shipping supply chains for transparency as well accelerating investments in alternatives to bunker fuel. The combined effect of greater commercial and public scrutiny of shipping and sustainability-focused legislation has also led to increasing pressure for regulations to be enforced more strictly.

The ‘Changing Context’ report was developed in partnership with Forum for the Future through its Futures Centre digital platform to report on the seven global trends highlighted in the SSI’s Case for Action in early 2012. In response to this, the SSI has since developed its Vision 2040 as well as a practical, action-orientated Roadmap, to address the issues identified. Three years on, the report revisits the trends to monitor how and where progress has been made.

Changes that were identified as moving most rapidly included the following:

  • Higher expectations and increased scrutiny enabled by today’s highly networked, digital age have pushed investors, shipping customers and in turn, ports and charterers to push for transparency in ship performance. This has partially resulted in the development in incentives for the adoption of energy efficient technology (e.g. ship ratings schemes) and stronger sentiment towards the enforcement of sustainability standards and regulations.
  • Emissions regulations and the growth of renewable energy on land and forthcoming emission reduction targets have created momentum around investments in alternatives to marine fuel, with the most evident traction in the near-term around LNG. These developments coincide with the rising influence of emerging economies, which are leading the way on clean energy growth, fuelling both supply and demand.

Speaking at an SSI-hosted event in Singapore today to launch both the report and The Futures Centre’s interactive discussion portal, the Future of Shipping topic hub, Alastair Fischbacher, chief executive, The Sustainable Shipping Initiative said: “Increased scrutiny and environmental regulation have undoubtedly put the industry under a fresh set of pressures over the last few years, and whilst many aspects of these are still being worked through, we are beginning to see some positive developments.”_DSC9388

Trends that are affecting shipping but at a steadier pace include the continued shift in economic and political power towards China, as well as the continued development of South-South trade, which is influencing demands on maritime services. Also, as more sustainability-driven legislation progresses, indications show that there is a little more certainty around the uptake of viable and proven efficiency-related technologies when compared with 2012.

The report highlights that challenges associated with improving ocean governance were not progressing as quickly as desired, largely due to increasing complexity. However, one of the areas of greatest concern was the industry’s response to climate change. With climate change accelerating more rapidly than predicted[1], a lack of policy and information directly related to shipping’s contribution and the impact of extreme climate change on the industry has stalled any proactive response.

“As climate change is on a track headed towards a ‘worst case’ scenario, the impact on shipping could be significant. For example rising sea levels, the opening of new shipping lanes due to melting ice caps and global trade patterns are all realities. Existing knowledge about climate change and hazards specific to the maritime sector remain insufficient for quantifying the economic consequences and specific needs to plan changes to safe ship designs and operations, ” commented Alastair Fischbacher.

To track and develop responses to these changes as well as other relevant macro trends, the newly launched Future of Shipping topic hub provides a platform for the industry and wider business community to share their observations and experiences with a view to collaboratively identifying and exploring solutions to key issues.

Speaking at the SSI event in Singapore, Anna Simpson, Curator of the Futures Centre, said: “When people share their understanding of change and the related risks, opportunities to act come to light. Our topic hub, launched today in collaboration with the SSI, offers the shipping industry and related professions a shared space to track trends and identify common actions towards a sustainable future.”

Alastair Fischbacher concluded: “As our work groups push forward to address some of these areas practically and pro-actively, we encourage anyone with an interest in the future of sustainable shipping to connect with us through the platform – the more we can scale support, the quicker we can achieve momentum.”

The Changing Context Report is available to download.

[1] Intergovernmental Panel on Climate Change

About the Sustainable Shipping Initiative
The Sustainable Shipping Initiative (SSI) is an ambitious coalition of shipping leaders from around the world that is taking practical steps to tackle some of the sector’s greatest opportunities and challenges. The group is working to achieve a vision of an industry in which sustainability equals success.

It is the first time the shipping industry has joined forces on such a cooperative global scale to tackle big sustainability issues. The ultimate goal is to show that collaborative action is possible, and to mobilise support across the industry, demonstrating that shipping can contribute to – and thrive in – a sustainable future.

The cross-industry SSI has members from 15 companies representing ship owners and charterers, shipbuilders, engineers and service providers, banking and classification societies. Member companies include Maersk Line, Wartsila, Bunge, Cargill, Carnival, ABN AMRO, AkzoNobel and Unilever.

In September 2013 the SSI became an independent charity. The SSI was initially facilitated by global sustainability non-profit Forum for the Future in conjunction with WWF, the global conservation NGO. Forum for the Future and WWF remain as SSI NGO members.

About Forum for the Future
Forum for the Future is an independent non-profit working globally with business, government and other organisations to solve complex sustainability challenges. Our Futures Centre uses the collaborative potential of the digital world to help make the big shift to a sustainable future. By tracking trends, sharing resources, and stimulating dialogue, we can explore how change is unfolding and make considered choices about what we do today for better outcomes tomorrow.

The Futures Centre features topic hubs, areas where businesses, non-profit organisations, and individuals can collectively monitor the future of a specific area of interest. Participants can gain a better understand of how change is happening and its future implications through discussion, horizon scanning and exploring the convergence of future trends. Our first topic hub explores the future of shipping.

Our Shipping Topic Hub offers the Sustainable Shipping Initiative (SSI) a means for the shipping industry to collectively track emerging solutions and respond to signals of change. Participants can contribute what they are seeing, and subscribe to receive regular updates from the contributions of their peers. The ultimate aim is to find opportunities for the SSI and the wider industry to accelerate progress towards the SSI vision of a shipping industry that is both profitable and sustainable by 2040.

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