CANADA TRANSPORTATION ACT REVIEW: ACTION TO TAKE TO REDUCE GREENHOUSE GAS EMISSIONS FROM MARINE VESSELS

Prepared by: René Drolet Consulting Services

March 31, 2015

ABSTRACT:

Using publically available information, this report documents current practices in place, or planned, to reduce greenhouse gas (GHG) emissions in the marine sector, both internationally and domestically. Over twenty specific measures that could be used in the design and operation of vessels to reduce GHG emissions are indicated. These measures can be grouped into three cost categories: operations (no capital cost, operating cost only); retrofits (capital cost and perhaps change of operation on an existing ship); and, design (capital and any associated operations included in a new ship). The measures are further grouped into four technology categories: more efficient operation; reducing ship resistance; improving propulsion efficiency; and, improving on-board energy generation (greater efficiency, fuel substitution or renewables). It was found that there has not been a systematic effort to produce benefit-cost analysis or GHG abatement cost per tonne estimates for a suite of operational, retrofit, and new build-related measures specific to the Canadian fleet. There is not enough disaggregated national information on fuel use, loads, trip distances and fleet composition to serve as the basis for a good quality GHG business-as-usual projection, or for the integration of measures-based emissions reductions into that projection. Surveys required to address this data gap should be a priority as it takes many years for the data to accumulate. The following barriers are key and widespread for the domestic fleet: uncertainty over fuel prices; split incentives where the ship owner does not pay the fuel bill; loss of income while undergoing refits; and, technology uncertainty for newer technologies that have not yet been fully tried and tested.

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