ENVIRONMENTAL IMPACT OF SHIPPING:

GLOBAL WARMING

AND

CO₂ EMISSIONS

AGAFONOV KIRILL KONSTANTINOVICH

PROJECT REPORT SUBMITTED IN PART REQUIREMENT OF THE

HIGHER DIPLOMA IN BUSINESS STUDIES

OF

THE FREDERICK INSTITUE OF TECHNOLOGY

JANUARY 2013

Acknowledgements

I would like to thank:

Mrs. Shantel Ryan, Publications Manager (Marisec Publications)

(For sending DVD disk with “Shipping, World Trade and the Reduction of CO2 Emissions” and providing easy access to Maritime Knowledge Center Resources of “Air Pollution and Greenhouse Gas (GHG) Emissions from International Shipping”)

Dr. Emmanouil Nikolaidis

(For his presentation at “Frederick Maritime Day” on topic “CO₂ Emissions in Shipping” and suggestions for my Project Research)

Dr. Angelos Menelaou

(For his comments and suggestions for my Project Research)

Executive summary

Global warming – is the most popular and serious problem in the world. It affects everything: nature, animals, human, resources, and economics. The facts about global warming are often debated in politics and the media, but, unfortunately, even if we disagree about the causes, global warming effects are real, global, and measurable.

Global Warming Cause:

- Carbon dioxide emissions from fossil fuel burning power plants

- Carbon dioxide emissions from burning gasoline for transportation

- Methane emissions from animals, agriculture such as rice paddies, and from Arctic seabed

- Deforestation, especially tropical forests for wood, pulp, and farmland

- Increase in usage of chemical fertilizers on croplands

In order to prevent future global warming, we need to reduce emissions, but to reduce them – we need to find solution, which might be successful and economical, reasonable to implement it.

The following Project Research summarizes the information founded for analyzing situation in problem of “Environmental Impact of Shipping and CO₂ Emissions”, to find out which is the real problem under selected topic and why it is not solved yet.

Chapter 1 will answer why reduction of GHG emissions, particularly CO₂, from international shipping, takes so long time to reduce them by a number of options available from technical side.

Chapter 2 provides a short view of current situation of Kyoto Protocol, what it achieved within the last 5 years, and gives answer if it really helps to reduce emissions and what should be done to increase positive results of implementation.

Chapter 3 and Chapter 4 will show if ETS and Carbon Tax reduce emissions from economical side of problem, or they are just a key to increase budgets of people and nobody care about global warming and CO₂ emission.

Chapter 5 shortly introduces what Committees and Organization do to prevent future emissions from Marine Fleet.

Project Research will end with my personal view on how is possible to reduce emissions from vessels.

Table of contents

ACKNOWLEDGEMENTS 2

EXECUTIVE SUMMARY 3

TABLE OF CONTENTS 4

BACKGROUND 5

INTRODUCTION 6

CHAPTER 1. ENVIRONMENTAL IMPACT OF SHIPPING 8

CHAPTER 2. KYOTO PROTOCOL 14

CHAPTER 3. EMITION TRADING SYSTEM 18

CHAPTER 4. CARBON TAX 20

CHAPTER 5. ORGANISATIONS AND COMMITIES 24

PERSONAL VIEW – PROBLEM OF REDUCTION EMISSIONS 26

CONCLUSION 28

TABLES AND FIGURES 29

REFFERENCES 38