Industry moves policy forward: Shipping case study

October marks a year since since the launch of the Fair Winds Charter, a volunary shceme for for ocean-going vessels to swicth to cleaner fuel when calling into Hong Kong. Charter signatories and other stakeholders have been urges governments in Pearl River Delta to madate this across the region but so far, no regulation has been announced by any of the PRD governments.

Policymaking is a slow process. Major shipping companies and associations operating in Hong Kong and the Pearl River Delta region have been calling for tighter environmental standards since 2008, as they believe it’s better to participate in the regulation conversation than be out of it. Regulation is the way to have a cleaner industry and maintain a level playing field amongst competing shipping lines, so leading shipping lines are not punished for being cleaner and using more expensive fuel, which affects their bottom line.

Stakeholders should be both congratulated for remaining in the regulation discussion and encouraged to continue in the dialogue with government. Industry can have a positive effect on regulation, but needs to engage with the right people in government. Recently a new opportunity has arisen to do this.

On 1 September 2011, the governments of Guangdong, Hong Kong and Macau launched a new consultation study called Regional Co-operation Plan on Building a Quality Living Area.

This broad document covers five main issue areas: “environment and ecology; low-carbon development; culture and social living; spatial planning; and transport planning”. This is important because Chinese national policy encourages the PRD region act as a pilot region for initiatives that might be replicated elsewhere in China. It also doesn’t look like just another consultation document.

Focusing in for a moment only at the vessel emission section (it also has similarly detailed recommendations for the other issue areas), the document lays out clear policy intent. It recommends:

• reducing emissions from vessels, including higher fuel standards for vessels and vehicles than other places in China;

• a PRD-wide marine emissions inventory;

• developing co-ordinated plans to control vessel emissions;

• developing vessel emission reduction and marine fuel targets;

• reducing NOx emissions from new vessels;

• cleaner fuel for trucks and other vehicles calling at the port;

• providing shoreside power for cruise ships and other ocean-going vessels;

• “requiring” OGVs to use shoreside power or cleaner fuel while at anchorage and/or at berth; and

• studying and exploring the establishment of an “Emission Control Area” in Greater PRD waters.”

Furthermore, the QLA Document builds on at least three policy documents a released in the last three years that include reducing vessel emissions: