"Carbon Positive's challenge is to manage carbon emissions either an ETS adopted or not"
Helena Athoussaki, CEO Carbon Positive
ELNAVI magazine, Greece
December 2011 issue

Mrs. Helena Athoussaki, CEO of Carbon positive Services, explains to ELNAVI the latest developments and the prospects in this controversial issue.

- Can you update us on Market Bases Measures (MBMs) currently being discussed for shipping's GHG emissions?

Although there are ten market based measures currently under consideration at IMO level, they can be narrowed down to two broad categories: Bunker fuel tax (levy) and emissions trading scheme (ETS). The first, to put it simply, is a fuel surcharge and may be collectable and paid-on either by the bunker suppliers or paid directly to a UN collecting agency by the bunker buyer. The second is in effect a CO2 cap and trade system whereby vessels emitting over their cap have to buy additional emission rights whereas those emitting under their cap are able to sell their CO2 surplus.

Consensus amongst observers suggests that some form of MBM will inevitably apply on shipping. Worth mentioning here is that the EU has stated that unless sufficient agreements is reached at IMO level they will press ahead unilaterally imposing some sort of MBM as done with the airline industry. This EU position continues currently despite last July's landmark decision by the IMO adopting EEDI and SEEMP as of 2013.

The funds earmarked for collection by the UN Green Climate Fund reach US$ 100 billion annually by the year 2020. Towards this fund, shipping is seen as a contributor and hence pressures towards a shipping MBM will continue unabated.

- There is skepticism from Greek ship owners over the application of an emissions trading system (ETS). What do you comment?

As I said before, it seems that an MBM for shipping cannot realistically be avoided. This becomes apparent to anyone objectively following policy-making developments and climate change politics. The issue, according to my opinion, is which MBM will eventually prevail and when. A levy or fuel tax may seem easier to understand, but it can be very costly, difficult to manage, inflexible and stands to face heavy resistance from the various stakeholders in shipping aside from ship owners, especially from shippers, receivers and charterers.

About an ETS on the other hand there is much rhetoric in the market around its alleged complexities– this is not true. For over 20 years cap-and-trade systems have being applied successfully in various regions around the world. For hundreds of years, shipping has been grounded in a fundamental understanding of trading – the notion that an emissions trading system is too complex does the industry a disservice. But an emission trading system (ETS) is just one element of a much broader issue and we shouldn't become tunnel-visioned on this particular option. The challenge at hand is to manage carbon emissions and adopt a process at an early stage that takes a holistic approach, encompassing many options. The debate should focus on understanding that carbon has a price and using this knowledge to encourage ship owners to save money and gain a competitive advantage by introducing a formal process to manage their emissions, ahead of regulation.

- Can you explain the role of Carbon Positive in relation to the industry's plight against climate change?

We are energy and carbon emissions management consultants. Our work is focused around taking a holistic approach to energy and emissions management and our new programme specifically developed for ship owners and operators covers all energy consuming areas. Carbon Positive's Programme for Ships (CPPS) is designed to remove completely from the shoulders of the ship manager everything that has to do with energy efficiencies, carbon emissions management and compliance comprising of three phases: measure, reduce and offset. It is a programme designed to offer added value right from the very beginning by reducing costs through relentless energy efficiency management techniques and correct implementation of measures in compliance with emissions regulation. Importantly, Carbon Positive is doing serious ground work in preparing shipping stakeholders such as charterers, ports, banks and insurance organizations in order to secure from them recognition and in due course tangible benefits for CPPS members. At the same time news and information analysis as part of our company's enhanced learning center on climate change, energy and carbon matters provides valuable insight into new opportunities and will ensure optimal preparation and future proofing of our member vessels.

- How will Carbon Positive's background and structure help you achieve your business objectives in shipping?

Carbon Positive has been long active in the field of carbon markets gaining experience and a solid status over the years. The company's team of consultants brings together expertise from many different skill sets and applies this to shipping to ensure ship owners get optimally prepared for any type of regulation whilst adding value to their business. The team includes industry recognized academics, marine engineers, naval architects, ship management experts, project managers and carbon experts with years of experience in carbon trading from other sectors, such as forestry and aviation. This diverse knowledge is vital to ensuring that our consultancy will help shipping take the best industry practice approach in managing and reducing its emissions.

- How important is the timing of prevailing market conditions to the success of Carbon Positive's service to the shipping industry?

Put simply, it is crucial. Low freight markets combined with exorbitant bunker fuel costs are catalysts towards ship managers' efforts for fuel consumption reductions. Now more than ever there are immediate costs saving benefits to be had through energy and carbon emissions management aside from the obvious benefits to the environment and future proofing of ships ahead of new regulations. This is why our programme focuses on bespoke energy efficiency management planning, uses innovative and exhaustive real-time on board audits and cutting edge technology and methodologies to ensure that the best technical and operational fuel consumption reduction measures are adopted. Continuous performance monitoring, reporting and verifications are undertaken by Carbon Positive minimising disruption to the vessel's operation, the crew's time and the ship manager's resources. Training for the crew and managers ensures correct implementation and optimal results.

- Your presence in Greece has been very critical in updating Greek shipping companies on emissions control issues. Have you noticed a change in the approach of Greek shipping companies to these issues of emission management?

Greek ship owners are taking an increasingly active role in the climate change discussion. This may well be driven by the rising cost of fuel in relation to earnings but it is also driven by the realization that shipping, despite being the world's most energy efficient mode of transport, carries an oversized carbon footprint. This makes it a prime target sector for CO2 reductions needed for its sustainability as well as financial contributions to climate change funds as mentioned earlier. This is becoming apparent to Greek owners.

Carbon Positive is a Greek company and nurtures deep respect and understanding for the way Greek shipping has developed over the years reaching the highest possible status in the global arena. It is my strong conviction that new challenges in any industry enable strong players to become stronger. The same applies for Greek shipping; from this new challenge new opportunities must be seized and towards this I can state with certainty that Carbon Positive will be their best ally.

- What are your future plans?

We are focused on working to increase understanding of carbon management and place it firmly on the agenda for ship owners, as well as supporting them to learn, prepare and then act. Our new programme for ships is aimed at providing a practical solution to encourage this – taking action now is what's important. We are also working on a programme specifically for ports to reduce their carbon emissions, which we will be launching shortly.

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