RightShip developed its sustainability arm in 2012 when it launched the innovative GHG Rating. Since then, we have also developed the Carbon Accounting tool and Maritime Emissions Portal. Here, our Head of Sustainability and Environment, Kris Fumberger, explains why sustainability is so important for our industry’s future
The shipping industry is responsible for transporting 90 percent of the world’s goods. And with that enormous task comes the challenge of reducing the emissions we create through the transportation of cargo. Unfortunately, shipping generates more than one billion tonnes of greenhouse gas (GHG) emissions annually. If we liken our industry to a country, it creates an output equal to the sixth largest GHG emitter globally - the equivalent of countries like Germany and Japan.
According to the International Maritime Organisation’s Fourth GHG study, shipping’s global contribution to GHG emissions were projected to increase by 90% to 130% of CO2 emissions in 2008, rather than the 50% to 250% found in the third IMO GHG Study. The IMO is a United Nations agency that’s focused on the safety and sustainability of shipping, and we respect and support their goals.
Contrary to the IMO regulations targets of 2050 (reducing emissions by 50% compared to levels in 2008), these forecasts would place the industry in a significantly negative position when it comes the long-term goal of limiting global warming to well below 2°C, as outlined in the Paris Agreement.
In many respects our industry is making great strides in working towards maritime decarbonisation, but with 2030 targets becoming increasingly pressing, there is more to be done. In November 2020, IMO members met and voted in favour of amendments to measures designed to reduce the carbon intensity of vessels.
However, these amendments are not robust enough to enforce immediate change. Research from the International Council on Clean Transportation (ICCT), emissions from the shipping sector will increase by 14 percent if the amendment is accepted in 2021. At this point, we should not be seeing emissions increase, and must act now to not only prevent increases in emissions but continue our drive down towards zero.
In order to do this, the industry needs leadership - and tangible solutions - to help carve a pathway to decarbonisation and exceed the IMO target of a 40 percent reduction by 2030. So how do we collectively continue to establish a more sustainable future in shipping? Part of the answer lies in the considerable data resource that shipping now has at its fingertips. The ability to demonstrate real insights is not just coming from within organisations. Extra pressure to reduce carbon in the supply chain, combined with greater environmental governance from banks and financiers, is set to radically transform our market’s sustainability approach.
In 2012, our industry was only just beginning to come to terms with the reality of the climate crisis. At that time, there was very little reliable sustainability information for ship owners and even fewer resources for those seeking to reduce their emissions. At RightShip, we saw a need for a standardised system that rated the efficiency of ships during the vetting process, something that had not been accessible in the past.
So, we developed the GHG Rating, a product that enabled charterers to filter their vessel options, selecting those offering a lower CO2 output and reduced fuel consumption – and it was both innovative and controversial. Why? Because such a practice had never been part of the industry. Environmental accountability had never been a factor before and the move was initially met with some resistance.
How the GHG Rating began to influence the industry
In the years that followed, Cargill, Unipec UK and Huntsman all applied the ‘no F&G vessels for charter’ policy, and soon, more industry players saw the value in adopting a sustainable outlook, which impacted all levels of the supply chain.
Charterers saw value in running efficient operations, banks increasingly looked favourably on sustainable shipping practices and ports provided fee subsidies for the most efficient vessels. While the initial investment in energy-saving equipment may have been seen as costly, owners and operators quickly saw a return, as it strengthened relationships and improved financial outcomes, too.
By 2018, the IMO announced goals to reduce the shipping industry’s GHG emissions by at least 50 percent by 2050 and since then we have seen a strong uptake of our environmental products and services.
Technological advances
We never could have anticipated that we’d go on to have 8,000 active users at its peak and subscribers submitting vessel sustainability information, that would in turn impact the decision making of more than 100 of RightShip’s customers who utilise the GHG rating within their business practices.
In recent years, we have worked to ensure our technology evolves in line with the industry’s needs. As part of the improvements, we have moved all of our GHG Rating services to the Platform.
The development of Carbon Accounting
Following the success of the GHG Rating, and the obvious need to expand, RightShip launched the Carbon Accounting tool, which aligns with the European standard ‘Methodology for calculation and declaration of energy consumption and GHG emissions of transport services (freight and passengers)’. The calculations are based on the characteristics of the transport service, for example the route, vessel particulars, cargo information, fuel use and type and associated ballast legs.
RightShip’s Carbon Accounting tool tracks vessel specific emissions, looking at the fuel and cargo type, actual movement data and vessel specific information to provide more detailed insights for charterers. This gives a more robust and consistent measure of carbon emissions for each journey.
Carbon Accounting operates to indicate total voyage emissions, to measure, understand and manage them. Increasingly companies understand the need to account for GHG emissions along their supply chains (scope 3 emissions) to comprehensively manage GHG-related risks and opportunities.
In 2016, RightShip attended a conference in which a speaker from Google made a presentation that revealed new technology used to track illegal fishing vessels through satellite data, and we began to think about how we could use similar technology to track emissions in port. Later, Google announced the Google Impact Challenge, which allowed companies to pitch an idea and win $250,000 to develop the concept.
We partnered with The Australian Marine Environment Protection Association (AUSMEPA) and won the grant. The funding enabled us to develop a digital tool that could provide emissions inventory data to ports around the world.
After much research and testing, we designed the MEP using a combination of Automatic Identification System (AIS) movement data and RightShip’s unique vessel insight data. In applying several layers of data, we could be confident in estimating ship-sourced emissions at ports and provide heatmap indications of hotspots, in turn finding opportunities to reduce environmental impact.
We also looked at best practice guidelines from groups including the USEPA, California Resources Board and the International Maritime Organisation when making our evaluations. Our team developed several filters such as ship types: ocean going vessels, OSVs, and tugboats; as well as all operating modes: anchorage, transiting, manoeuvring and hotelling.
Once we had a pilot tool up and running, we applied a real-world scenario to ensure commercial viability. We worked with the Pilbara Ports Authority to test our methodology and estimated the emissions for the financial year 2018/19.
The pilot study modelled the financial year 2018/2019 period which has allowed us to compare the modelled outputs of the MEP with the collected data from that period. This provided the team with the ability to validate the process and they are continuing to test this outcome.
PPA will now extend the MEP to its other ports within the Pilbara region of Western Australia. Early indications are that the MEP will be a useful tool for both port authorities and port operators to better understand shipping emissions and therefore consider management opportunities to address these emissions in balance with land-based sources.
Port authorities can use several fitters including ship type, points of interest, vessel age and emissions type to develop a clear view of vessel activity in port. In addition, the analytics tools and reporting give users a clear path to action.
After much research and testing, we designed the MEP using a combination of Automatic Identification System (AIS) movement data and RightShip’s unique vessel insight data.
Why is the MEP important?
The MEP has been designed as a tool to support port operators to better and more accurately understand ship-based emissions, and based on that evidence, identify opportunities to develop management strategies.
The easy-to-use digital tool enables ports to better understand and assess their emissions inventory and local air quality and then to identify opportunities for management strategies via the heatmaps. Port authorities can use several filters including ship type, points of interest, vessel age and emissions type to develop a clear view of vessel activity in port.
With the successful testing and reporting phase now completed, we’re inviting new port partners to use the tool and assess their emissions profile.
RightShip offers an end-to-end customer support process, through which interested port authorities can subscribe to the tool and work with RightShip to review its emissions strategy.