Accelerating Green Technology Development

Innlegg statssekretær Dilek Ayhan på Danish Maritime Forum, 7. oktober 2015

*Sjekkes mot fremføring*

Ladies and gentlemen,

What a pleasure it is to see you, decision makers and other important representatives from the shipping industry, here at the Danish Maritime Forum.

The goal of this forum is to unleash the potential of the global maritime industry.

In that respect, the most intriguing question to ask ourselves is “What´s next?”

What will the next generation of shipping look like?

Some things are certain in the foreseeable future:

  • First, seaborne trade will be the major mode of international transport
  • Second, the ocean and its resources will be a major contribution meeting a growing population’s demands – labelled the blue economy.
  • And finally, we know we will see an increasing demand for a more environmentally sound shipping as binding international regulations are put into place.

I think we can all agree that part of the future for this industry is:

  • to make a successful shift to green technology
  • and to make  green solutions available and sought after in the global market

The maritime industry –like all other industries –has to re-invent itself time and again to be competitive in a global market.

To reach our expectations for green shipping we need to rethink status quo. This goes for the Norwegian government as well.

***

Earlier this year the Norwegian government launched its maritime strategy, where the main objective is to achieve a blue growth for a green future.

And just as important, we need to provide the industry with the tools to handle developments they meet in the future by:

  • Continuing to develop new technologies.
  • Continuing to develop competences for a sustainable maritime industry.

In our opinion, the green shift in the maritime sector must follow two paths: One is about the incentives we provide at - a national level - to accelerate the use of green technologies.

The second is about providing regulations – at an international level - that will foster green technology development.

We are of course fully aware that these two paths affects each other heavily.

***

The target of the strategy is clear: We want to strengthen the competitiveness in our maritime sector.

In our opinion, a green maritime sector can be a competitive maritime sector.

Let me give you some examples:

Not long ago, the world’s first fully battery driven ferry, “Ampere” was introduced. This ferry won the Ship of the year award at the SMM Conferencein Hamburg last fall.

With a capacity of 120 cars and 360 passengers, a sailing time of 20 minutes and 10 minutes charging at port, this vessel represents the next generation ferries.

The Norwegian government want to see more of this in the industry. That is why we will support the R&D and the commercialization of green technologies and require low emission technology in ferry tenders.

 

Another effort is to continue the Norwegian NOx-fund – which has been a huge success in implementing green technology in our maritime sector.

The Nox-fund is a cooperative effort where participant enterprises may apply for financial support for NOx reducing measures. The Nox fund is funded by the industry itself. They may participate through this fund or pay a tax on Nox-emission which has a higher rate.

The NOx Fund has fostered and stimulated the use of new emission reducing technologies, such as LNG as ship fuel.  The NOx Fund has been an effective measure in reducing NOx-emissions from the industry.

Today Norway has a fleet of 52 LNG fuelled ships and the number is growing. There are currently five LNG plants, 45 semitrailers supplying LNG along the Norwegian coast, about 70 LNG terminals and three LNG tankers.

Inspired by the results of the NOx-fund, we are now looking into adjusting our fees and taxes, so that green technologies and design will have an increased payback. 

We are currently looking into the possibility of a scrapping scheme for Norwegian registered ships – leading to a modernization of our fleet and lower emissions from ships.

These are some examples on how the Norwegian government will accelerate green technology deployment in the maritime sector.

If there is one common feature to these examples is how they illustrate the importance of the cooperation between the maritime industry and authorities– where perhaps the establishment of the NOx Fund in 2008 stands out.

*** 

However, as I just mentioned – to achieve the necessary punch to implement environmental regulation – we have to follow the international path to introduce them at a global scale.

That is why it is crucial to use occasions such as this to discuss the best way forward.

Let there be no doubt that the IMO is our most important tool to achieve fair and global regulations on the shipping sector.

The achievements of the IMO on environmental protection the last decade have been many, and of great importance in ensuring a sustainable future.

The Ballast Water Management Convention, the Hong Kong Convention and the recently adopted Resolution on energy efficiency in ships are three important examples.

An crucial element of the work done in the IMO is the uniform implementation and enforcement. Harmonized rules and equal implementation all over is a key to create stability and predictability for the global shipping industry - and for the producers of emission reducing technologies.

The maritime industry is a highly global sector that needs harmonized requirements and predictable framework in order to be sustainable, both in the economic and environmental meaning.

Our strategy clearly states that the Norwegian government will use its influence as a major player in IMO to develop climate and environmentally friendly international regulations.

Not to forget the important role of the EU. Norway aims to work with the EU on environmentally friendly shipping, including facilitating the development of necessary infrastructure for supply.

***

So, to sum up:

Policy makers can contribute through international regulation.

Business can contribute:

  • Both by reacting to incentives mechanisms
  • And by reacting to early mover- incentives.

We know regulations will come. The price of pollution will go up – there is no alternative. Thus, there are profits to be gained from adjusting to those regulations even before they agree in place.

Business and environmental concerns are so tightly bound together:

  • On the one hand, industry, and especially manufacturing, has been challenged as polluters in many different instances.
  • On the other hand, the business opportunities in green innovation have given rise to new industries, and changed existing industries.

This form of innovation promotes the environment – but they also help modernizing existing industries, and thereby promote growth.

***

Ladies and gentlemen,

Friends of sustainable shipping,

 

Reducing the carbon footprint form the world’s maritime industry is not only good for the environment – it is also good for business.

 

Because it will eventually be more productive and cost-efficient to go green.

I hope the speakers at this forum will inspire you. In addition, and more importantly, I hope you will bring back new knowledge and visions to your companies, countries and organizations, and that it will eventually have an impact.

I can assure you that Norway will play its part in achieving the green shift in the maritime sector.

Thank you for attention!

_***_