That is how the Danish Shipowners’ Association (DSA) describes the outcome of the COP17 climate negotiations. The DSA had hoped that COP 17 would result in the International Maritime Organization (IMO) receiving a clear mandate to continue its ongoing work towards a global market based GHG (greenhouse gas) regime for shipping, built on either a levy on bunker fuel or a quota system.

On the other hand, the DSA is pleased that the final text from COP 17 mentions shipping, and that it commits the countries to continue their deliberations on CO₂ reductions for ships with a view to making a decision at COP 18 in Qatar in December 2012.

“We feared that shipping – due to fundamental political disagreements between the developed and developing countries – would disappear from the agenda, only to be left as a potential source of funding for the Green Climate Fund. In that event, shipping would have had to contribute financially without a proper linkage to CO₂-reduction”, explains Maria Bruun Skipper, Consultant, DSA.

“Such a solution would have been disastrous, given that the EU Commission is preparing a legislative proposal on CO₂-reduction for shipping. The sector could would then have faced a “double” burden, i.e. both financial contributions and actual CO₂-reductions.The industry is ready to contribute its fair share towards reducing the global CO₂-emissions, but it must happen in a meaningful way - and shipping should not be seen just as a cash cow for the Green Climate Fund”, says Jan Fritz Hansen, Vice President, DSA.

The Green Climate Fund was indeed also discussed at COP 17. The countries agreed upon a plan for the Fund’s secretarial setup. The idea behind the Green Climate Fund is that the developed countries shall jointly mobilize USD 100 billion a year by 2020 to address climate adaption activities and development of green energy in the least developed countries. The crucial questions, one of which is where the money should come from, were left open for further discussions. In this context, the International Chamber of Shipping, ICS, has announced that a portion of the proceeds from a fuel levy – the latter being the Danish proposal for a market based measure currently under discussion in IMO – could be allocated to the Green Climate Fund. The DSA supports this idea, as it could turn out to be a propellant in the difficult negotiations in the IMO. Above all, the COP 17 results send a clear signal to the EU that on the global scene steps are taken, albeit small but clearly in the right direction, for the global regulation of shipping. The DSA will continue its endeavors to maintain shipping-related climate control on the global track, and from that point of view the COP 17 results are, after all, a step in the right direction.

For further information please contact: Vice-President Jan Fritz Hansen, jfh@shipowners.dk, tel.: (+45) 33 48 92 11 or 
Consultant Maria Bruun Skipper, mbs@shipowners.dk, tel.: (+45) 33 48 92 86

15/12/11