cost-effective ship nox control - iiasa ship nox control christer Ågren ... heart disease . ......

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Cost-effective ship NOx control Christer Ågren AirClim 2017-02-16

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Page 1: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Cost-effective ship NOx control

Christer Ågren AirClim

2017-02-16

Page 2: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Ship emissions occur close to land Globally, 70-80% of ship emissions take place within 400 km from shore

In the North Sea, 90% of emissions take place within 90 km from shore

Sources: ICCT (2007), PBL (2012)

Page 3: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

EU28 land-based vs. shipping around Europe 1990-2015 (kton)

0

5000

10000

15000

20000

25000

30000

1990 1995 2000 2005 2010 2015

EU-28 Shipping

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1990 1995 2000 2005 2010 2015

EU-28 Shipping

SO2 NOx

Land-based NOx cut by 58% 1990-2014 Land-based SO2 cut by 88% 1990-2014

Page 4: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

50,000 deaths/year in Europe

Source: J. Brandt et al, CEEH, Denmark (2011)

In Europe, emissions from international shipping is estimated to cause some 50,000 premature deaths per year due to PM2.5

Tiny airborne particles (PM2.5) cause premature death through lung and heart disease

Page 5: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Ship emissions are a major cause of eutrophication and acidification

NOx-N Norway 28% Sweden 26% Denmark 26% Portugal 24% Ireland 23% Netherl. 19% Finland 18% Spain 18% UK 18% Italy 15%

SO2-S Portugal 26% Denmark 24% Netherl. 22% Ireland 20% Norway 19% Spain 18% Sweden 17% France 15% UK 13% Italy 13%

Source: EMEP (2015)

Examples of countries with a high proportion of air pollutant fallout from ship emissions (2013)

Page 6: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

International Maritime Organisation (IMO) Revised MARPOL Annex VI (adopted 2008) • Entry into force 1 July 2010 • New global sulphur limits: - 3.50% 1/1 2012 - 0.50% 1/1 2020 • New SOx-ECA sulphur limits*: - 1.00% 1/7 2010 - 0.10% 1/1 2015 • Stricter NOx standards for new ship engines - Tier II standard (-16-22%) 1/1 2011 - Tier III standard (-80%) in NOx-ECAs only (*Note: Alternatives such as scrubbers or LNG allowed.)

Page 7: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Sulphur content of transport fuels ppm

0.001%

Global average: 2.5% 35000

25000

5000

1000 10

0

5000

10000

15000

20000

25000

30000

35000

40000

IMO globalmarine fuel limit

from 2012

Marine fuel oilcurrent global

average

IMO globalmarine fuel limit

from 2020

IMO SECA fuellimit from 2015

Road transportand inland

shipping fuellimit

Page 8: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Global 0.5% sulphur cap from 2020

Based on IMO’s fuel oil availability study, in October 2016 IMO’s Marine Environment Protection Committee decided that the 0.5% sulphur global cap shall apply as from 2020. This will:

• Cut global ship SO2 emissions by 8.5 - 9 million tonnes/year

• Prevent more than 100,000 annual premature deaths from PM2.5

Source: IMO MEPC 70/INF.34 (2016)

Health benefits

Year Avoided premature deaths

2020 107,800

2021 110,400

2022 113,100

2023 115,700

2024 118,300

Sum: 569,600

Page 9: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

EU28 land-based vs. shipping around Europe 2010-2030 (kton) SO2 NOx

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2010 2015 2020 2025 2030

EU-28 Shipping

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1000

2000

3000

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5000

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7000

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9000

10000

2010 2015 2020 2025 2030

EU-28 Shipping

NEC

NEC

NEC NEC

Page 10: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

IMO NOx-standards for new ship engines

Compare to EU-standards (Euro VI) for new heavy duty diesel engines in trucks and buses set at 0.4 g/kWh as from 2013 - down from 8 g/kWh from 1992 (Euro I).

2000: 17-9,8 g/kWh

2011: 14,4-7,7 g/kWh

2016 (NOx-ECAs): 3,4-2 g/kWh

Page 11: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

NOx-abatement measures

Some of the main NOx-abatement options for ships:

• Exhaust gas after-treatment (e.g. SCR)

• Combustion modifications (e.g. EGR)

• Fuel switch (e.g. to LNG or methanol)

• Reduced fuel consumption (e.g. lower speed)

Page 12: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Reducing NOx by NECA

0

100

200

300

400

500

600

700

800

900

1000

2005

2010

2015

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2035

2037

2038

2039

2040

BAU NECA

Source: IVL/CE Delft (2016)

kton

NOx emissions in the Baltic Sea and North Sea with/without NECA from 2021

Page 13: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Reducing NOx by NECA + Levy & Fund kton

Source: IVL/CE Delft (2016)

0

100

200

300

400

500

600

700

800

900

1000

2005 2010 2015 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2035 2037 2038 2039 2040

BAU NECA Levy&Fund

Page 14: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

CBA for NECA in Baltic Sea & North Sea

171

298

429

563

VSL [VALUEVÄRDE]

VSL [VALUEVÄRDE]

VSL [VALUEVÄRDE]

VSL [VALUEVÄRDE]

0 1000 2000 3000 4000 5000

2025

2030

2035

2040

NECA: Benefits as VSL vs. costs (central valuation)

Benefits

CostsVOLY 621

VOLY 884

VOLY 1147

Source: IVL (to be published in March 2017)

€ million

VOLY 351

Page 15: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

CBA for NECA + Levy&Fund

941

866

756

723

VSL [VALUEVÄRDE]

VSL [VALUEVÄRDE]

VSL [VALUEVÄRDE]

VSL [VALUEVÄRDE]

0 1000 2000 3000 4000 5000 6000

2025

2030

2035

2040

NECA + Levy & Fund: Benefits as VSL vs. costs (central valuation)

Benefits Costs

VOLY 1423

VOLY 1452

€ million

VOLY 1395

VOLY 1490

Source: IVL (to be published in March 2017)

Page 16: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Some conclusions from the studies • Baseline (BAU) projection up to 2040 indicates a slight NOx

reduction (-14% 2015-2040) (due “optimistic” assumptions on improved efficiency?)

• A NECA would significantly cut NOx in the longer term (-63% 2015-2040), but not so much in the near term (-37% 2015-2030)

• Significant short-term reductions are possible through the use of economic instruments, e.g. Levy & Fund (-72% 2015-2030)

• A Levy & Fund can cut NOx by around 500,000 tonnes/yr throughout the 2020s. This equals current total annual land-based emissions from SE, DK, FI and NO combined.

Sources: IVL/CE Delft (2016) + IVL (2017)

Page 17: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Ship NOx CBA summary table

Accumulated results 2021-2040 (central valuation) NECA NECA + Levy & Fund

NOx emission reduction

4.5 million tonnes

9.9 million tonnes

Abatement costs

€ 6.2 billion

€ 16.5 billion

Health benefits (VOLY)

€ 12.7 billion

€ 28.3 billion

Net benefits (VOLY)

€ 6.6 billion

€ 11.8 billion

Source: IVL (to be published in March 2017)

Page 18: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

Measures to cut ship emissions

• Improved emissions monitoring and compliance control

• Lowered speeds • Emission standards for PM • Develop and adopt an EU marine

fuels quality directive

• Designate all European seas as full Emission Control Areas

• Emission charges to cut NOx (and PM?) from existing ships

• Enforce global 0.5% sulphur standard from 2020

NOx

Page 19: Cost-effective ship NOx control - IIASA ship NOx control Christer Ågren ... heart disease . ... Revised MARPOL Annex VI (adopted 2008)

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