The Role of International Maritime Organizations in Promoting Sustainable Shipping Practices
1. Introduction
Maritime transportation accounts for around 90 percent of the movement of global trade and is a more carbon-efficient method of transport than air freight. Stimulated by previous successes in environmental protection by other transport sectors and in response to increasing pressure from governments and a variety of interest groups, shipping has begun to take measures to improve its environmental performance. However, the international nature of the industry and its regulation, combined with a variety of economic, social, and environmental barriers to sustainability, have meant that this has been a complex task. It is therefore important that the past and present role of international maritime organizations (IMOs) in promoting sustainable shipping practices is understood and appraised so that more effective strategies for the future can be formulated. This essay will thus discuss the importance of sustainable shipping practices in the context of the growing sustainability movement in international trade, as well as examining the role of IMOs past and present in promoting this cause.
Shipping is recognized as the most efficient means for transporting goods, and the rapid expansion of international trade has witnessed a corresponding growth in the world fleet. Predominantly due to its inherent advantage in terms of cost, ability to move large volumes of cargo, and offering a reliable service, shipping is a highly competitive industry. Yet it is often criticized as being less sustainable than surface transportation modes, and trade liberalization has placed greater pressure on the industry to remain competitive effectively to the detriment of its environmental performance. This attitude is changing as increased awareness of the many adverse effects that transport can have on the environment has led to calls for greater sustainability in transport and more stringent environmental regulations. Shipping can no longer regard itself as a separate entity from global society, and its relationship with the environment must be addressed.
1.1 Importance of Sustainable Shipping Practices
Sustainable shipping is also important for marine environmental safety and resource conservation. Shipping can have a number of consequences on the marine environment, through, for example, pollution, acoustic and physical impact, or the introduction of invasive species. Loss or damage to living marine resources can also be a cause of major economic damage, for example, through the loss of fish stocks. It is important that future shipping activity does not have an impact upon the marine environment greater than that which can be sustained. Sustainable shipping should aim to safeguard the environment and avoid harm to human health, taking into account the need for development and the potential impacts on future generations.
Sustainable shipping methods are required to reduce pollution and damage to the environment. There are a variety of laws and regulations in place to minimize the environmental impact of shipping, but unfortunately, the practice is very different from the theory. Environmental consciousness is required among shipping industries, both from developed countries and developing countries, to protect and conserve the environment in the future.
Sustainable shipping practices are required to minimize the environmental impact of the shipping industry. It is known that the shipping industry is the backbone of globalization. Around 90% of world trade is carried out by the international shipping industry.
1.2 Need for International Cooperation
We are informed that where there is human activity at sea, there are impacts on the environment and a potential for social and economic conflict. Shipping is no exception, and it is perhaps due to the significantly increased awareness of environmental impacts from shipping that there has been a flurry of activity in the realm of sustainable policymaking in recent years. This has come in the form of sustainable maritime-focused policy in some regions, such as the European Union and Southeast Asia. However, it is the 1990s that marked increased effort to promote sustainability at an international level.
The time is ripe for sustainable maritime transport, and the international shipping organization has been identified as a platform for this process to evolve. The shipping industry has been accused of lagging behind in detailed sustainable practices, as opposed to other transport industries like automotive. Yet, it is not simply the advance of technology that will make the industry more sustainable. The transboundary nature of shipping means that the industry relies on global legislation and a long-term global culture change before it can align itself with best practices in other transport industries. Any ship must comply with the legislation of its flag state. However, the effectiveness of this is in doubt due to the phenomenon of “flags of convenience.” This has meant that, in reality, there is no real safety net of legislation that applies to ships globally.
2. International Maritime Organizations
Regulations are not the only method employed; an effective one is through technical cooperation with member states to help them improve their shipping industry. This is because most problems are caused by human error and are best tackled through proper training and education. An educated decision in choosing to improve the shipping industry would be to ratify the London Protocol to further prevent marine pollution, as Taiwan did at the end of last year as a follow-up to an IMO organized national workshop held in 2007.
IMO’s consideration of safety to be the primary concern, and that the best way to prevent marine pollution is to avoid accidents shows through the substantial regulations it has made over the years to prevent accidental pollution from ships. These regulations may go further in preventing pollution than current laws, but they are usually aimed at the long-term future. An example is the phase-out of single-hulled tankers which were completed in 2010. This took 20 years since the legislation to first introduce the double hull was introduced, showing that the improvements are continuous and take time.
International Maritime Organization or IMO is a specialized agency of the United Nations which is the global standard-setting authority for the safety, security, and environmental performance of international shipping. In implementing its mandate to the shipping industry, IMO seeks to promote a culture of continuous improvement in the performance of international shipping, the main tool of which has been through developing and maintaining a comprehensive framework of global regulations covering maritime safety, environmental protection, legal matters, and technical cooperation.
Since the mid-20th century, international maritime organizations have aimed to promote sustainability in general and environmental sustainability more particularly via international regulation of the shipping industry. The maritime industries can impose national environmental standards on themselves to protect the quality of the ocean environment and coastal waters beyond the limits required by international law, but the key to global protection of the marine environment is the treaty-making process between nation states conducted under the aegis of international organizations. This essay focuses on the role of international organizations such as IMO, UNCTAD, UNEP, Regional Seas Programme, and recently emerging NGOs and their contributions in promoting sustainable shipping.
2.1 International Maritime Organization (IMO)
The International Maritime Organization (IMO) is a specialized agency of the United Nations that is responsible for ensuring the security and protection of the marine environment through measures applied to international shipping. Since it was established in 1959 and adopted by the IMO Convention, it began to operate on 17 March 1952. The main policy-making organ of IMO is the Assembly, which consists of all member states and is considered the highest governing body of IMO. The Assembly meets every two years. Between Assembly sessions, the work is carried out by the 40-member Council. The 40 members are selected from the IMO member states to ensure that various geographic areas of the world are represented. All members of the IMO are United Nations agencies. Other countries may also associate with the IMO. The IMO has its own permanent secretariat based in the United Kingdom. Over the years, IMO has increased its portfolio.
The IMO’s prime focus is to develop and maintain a comprehensive regulatory framework for shipping. Its remit today includes safety, environmental concerns, legal matters, technical cooperation, maritime security, and the efficiency of shipping. But its main task has always been to prevent and control marine pollution from ships.
2.2 United Nations Conference on Trade and Development (UNCTAD)
UNCTAD is a subsidiary organization of the United Nations that was established in 1964 with its mandate focusing on the development dimensions of economic and trade issues. Its primary mission is to maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the global economy. With the majority of the world’s merchant fleet being owned by developed countries and registered with flags of convenience, the rapid integration and participation of people from developing countries has led to an increased number of accidents in the shipping industry. The vast expansion and rapid technological advancements have created a need to provide maritime and legal professionals in developing countries with sufficient knowledge and training to respond effectively to safety, security, environmental and efficiency challenges confronting the industry. This safer and more secure maritime transport environment was heavily emphasized in the resolution leading to the integrated approach by IMO and the various entities within the UN family to implement the technical cooperation components recommended in the outcome of UNCTAD XII. In order to provide a greater level of maritime safety and security throughout the world, particularly to the developing countries, UNCTAD launched a TrainForTrade programme for the purpose of providing a steady flow of maritime experts and legal professionals, well trained in the complexities of international regulation and its implications. Starting with the English and French speaking sub-Saharan Africa and the Caribbean, the programme is divided into regional and national phases and aims to gradually cover all developing regions. The programme is designed to provide participants with the necessary tools and frameworks to carry out the further development of their own human and institutional capacities in the area of trade, transport, shipping and port management, while taking into consideration the interdependence between all the elements involved in various transport chains. As explained by a case study on the inception of a similar programme designed for the modernizing Georgia’s approach to trade logistics, this is vital for the sustainable development of a country and effective integration into international trade.
2.3 World Maritime University (WMU)
The World Maritime University has played a significant role in promoting environmentally sustainable shipping through awareness-based merchant training, research and analysis in the shipping industry. Training the professional workforce that will be implementing conventions and regulations is a critical aspect of ensuring compliance and enforcement. The IMO’s recent ‘White Paper’ on the Global Status of Maritime Education and Training reveals concern over the status and availability of training, with a prediction of a shortage in personnel qualified to implement IMO instruments. This document identifies a lack of access to quality education and training in the developing world, and a dwindling interest in seafaring as a result of harsh working conditions and low pay. These are problems that are also recognized by the WMU and are addressed through their Postgraduate Diploma Programmes in ‘Maritime Affairs’ and ‘Marine Insurance’, designed to provide advanced training for marine professionals and enhancing professional subjects through research and analysis. These personnel will be the likely beneficiaries of future shipping industry growth and have thus been warned to expect unprecedented changes in rules and regulations and given the need to manage increasing financial risks. The demands for higher professional qualifications in the management of shipping organizations have therefore never been stronger. This can be met through WMU’s Malta Institute of Management and Administration, which offers exciting opportunities for maritime professionals to enhance their practical management skills.
The establishment of the WMU by the IMO in 1983 allowed a specialized agency to be set up for education, training, and research applying to the work of IMO within the international maritime community. The University, based in Malmö, Sweden, provides a unique postgraduate education for the international maritime community, including the development of a comprehensive framework of maritime specialization, the promotion of high academic standards through research, and the expansion of maritime education and training. The education provided helps to effectively implement and enforce international regulations through raising the level of understanding of new requirements and thereby reducing the number of substandard ships. On a broader scope, the students from many developing countries have provided and will provide well-educated research and policymakers for their respective governments and maritime industry, who will inevitably be best placed to promote and often negotiate participation in maritime safety and environmental protection.
3. Promoting Sustainable Shipping Practices
3.1 Development of environmental regulations
This has been achieved through the International Maritime Organization. These organizations have been responsible for formulating and promoting the compliance of environmental regulations. It is crucial that shipping becomes more environmentally aware, as without adherence to new regulations, little progress will be made in preventing further damage to the world’s oceans. Sustainable shipping practices are only made possible by the promotion and enforcement of new regulations, as seen with recent initiatives to eliminate single hull tankers, an industry standard which is being replaced by a far safer and cleaner double hull design. The compliance of environmental regulations is enforced through the United Nations coordinated organizations, and since the Rio summit, there has been recognition of the need to manage and protect the environment by developing and promoting the compliance of environmental regulations. The Rio summit led to the formation of a coordination panel between these various organizations. Environmental regulations have addressed a number of issues concerning the prevention of ocean pollution and damage to marine and human life. This has been done through the prevention of air pollution from ships and greenhouse gas emissions. Measures to achieve this include the North American Emission Control Area, which sets stringent standards for NOx and SO2 emissions and is a landmark in the effort to reduce air pollution from ships. The regulations also focus on the prevention of invasive aquatic species transfer, with a key example being the Ballast Water Management Convention. These regulations are the catalyst for a number of the practices which will.
3.1 Development of Environmental Regulations
The first U.N. conference on the human environment in Stockholm marked the beginning of a trend towards increased global environmental cooperation. Resulting from debate at the United Nations on the establishment of a new economic order in the sea-bed, Part XI of the United Nations Convention on the Law of the Sea (UNCLOS) pointed to the need for protection and preservation of the marine environment and furthered the link between the marine environment and shipping. The Marine Pollution Convention is actually made up of six main agreements, with the International Convention for the Prevention of Pollution from Ships, 1973 as modified by the Protocol of 1978 relating thereto (MARPOL 73/78), being the most significant to the maritime community. The International Convention for the Prevention of Pollution from Ships (MARPOL 73/78) made significant strides in the regulation of shipping and the prevention of marine pollution. Deadweight tonnage of new and existing ships was the hallmark for separating those ships required to comply with MARPOL, with the convention itself applying to all ships and rigs. Accompanying resolutions provide an action plan towards the eventual elimination of pollution of the marine environment. MARPOL 73/78 was recently modified by the inclusion of Annex VI relating to air pollution and the atmospheric discharge from ships. This was a response to concerns about air pollution and the effect of emissions on climate change. Measures to reduce air pollution include an outright ban on some types of emissions, stricter regulations in nitric oxide emissions and fuel quality, and very importantly, a requirement for establishment of a designated SECA where emissions from ships are regulated and fuel quality is improved.
3.2 Implementation of Energy Efficiency Measures
The importance of improved energy efficiency as a means of reducing GHG emissions from ships is reflected in the decision of MEPC 52 to include technical assistance to capacity building for energy efficiency in developing countries in its biennial agenda. The 2006 Guidelines for Voluntary Use of the Ship Energy Efficiency Operational Indicator, which provides the methodology and means for ships to develop the Ship Energy Efficiency Management Plan (SEEMP) and establish a mechanism for monitoring the effectiveness of the Plan, were finally adopted at MEPC 62, and work on the SEEMP Guidelines and the development of the required Index took place over four sessions of intersessional correspondence groups and open-ended working groups over a period of approximately three years. The Index was adopted at MEPC 63 in March 2012, and the amendment of MARPOL Annex VI to make the SEEMP and the EEOI mandatory was adopted in July of the same year. Coming into effect as early as 2013, this will be the first global GHG reduction regime for an international industry sector.
As part of the strategy for implementation, it was decided that the index should be used as a tool to control and possibly reduce GHG emissions from international shipping, to make the indexing process simple and user-friendly and to subject it to a period of review and any necessary modifications at a later date. This decision was taken after consideration of the divergent range of ship types, ship operations, fuel types, and cargoes within the shipping industry and to avoid forcing decisions that would be inappropriate across these ranges. This work towards GHG reduction has been complemented by parallel changes at the IMO in the availability of energy efficiency guidance and actions in international development from the availability of Official Development Assistance (ODA) and financing of development strategies and projects. ODA and financing of project activities often hinge on the availability of a clear strategy or plan for a recipient country and also the ability to monitor progress against said plan and has seen fuel consumption data collection for the setting of baselines and the monitoring of progress become a part of several ship-related energy efficiency projects coming out of ODA.
3.3 Advancement of Alternative Fuels and Technologies
The existing regulatory and energy conservation measures are only initial steps compared to what is required to meet the vast future energy requirement of a growing industry, though problems are right now being addressed. Uncertain fuel prices and costs associated with adhering to regulations are deterring investment decisions in low energy consuming technologies and alternative fuel sources. Financial and technical barriers are significant for all of the measures detailed below, but through a mixture of short, medium, and long-term initiatives, it is forecasted that they can be overcome and the shipping industry can advance to an era of low emissions and possibly zero-emission shipping.
Over long time frames, technological improvement can be achieved through continued research and development targeting increased energy efficiency technologies and alternative fuel sources. To stimulate investment, the MARPOL Annex VI Energy Efficiency Design Index (EEDI) regulation needs to be supported and the phase-out date of inefficient vessels advanced. Research into greener fuels is largely being driven by global targets to reduce greenhouse gas emissions. The Kyoto Protocol, for example, convinced Japan to invest in developing fuel cell technologies and LNG as an alternative fuel source, with the aim of creating the technology and infrastructure needed for a carbon-free energy source in the future. Currently, these fuels are not considered economically viable with conventional fuels, but research indicates that this may change in the near future.
3.4 Encouraging Green Practices in Shipbuilding and Operations
The International Maritime Organization has been largely involved in preventing pollution from ships by, as previously shown, setting regulations and incentives on shipbuilding and operations. The IMO adopted the ‘International Convention for the Prevention of Pollution from Ships’ (MARPOL) in 1973 which has been updated and now includes a further six annexes which aim to prevent different forms of marine pollution. The convention is the primary instrument preventing pollution from ships and is the only of its kind to be implemented universally with over 130 signatories. The convention has seen the limitation of operational discharges, enforced and implemented a global ban on single hull tankers, and implemented a global cap on the sulfur content of fuel oil. This puts shipowners operating single hull tankers and substandard ships one step ahead in their preparation for the future as announced in the revised strategy for the further reduction of atmospheric emissions. With the increased pressure and demand for cargo-carrying capacity and the issue of a potential decrease in the amount of cargo, the convention presents a challenge for shipowners, yet at the same time acts as an incentive to invest in new ships, technologies, and operational techniques. The convention, at the entry into force of an amendment, will only apply to ships built after a certain date which acts as an implicit date for most shipowners to invest in new ships as opposed to upgrading or retaining their old ones.
4. Challenges and Future Outlook
One possible solution to the compliance issue is use of market incentives for high performance. The most direct regulatory approach to raising ship performance standards is to mandate specific technologies or practices. However, such an approach is inflexible in the face of rapid technological change and may saddle industry with requirements that become costly or obsolete. MARPOL already includes a provision that allows amendments to be made specifying effective dates for the phasing out of certain types of polluting equipment (i.e. single hull tankers), but has yet to fully explore use of standards pegged to environmental goals, leaving open the possibility of industry choice in methods of compliance, or marketable permits and emissions trading schemes. Such economic or flexible regulatory tools can align economic interests with environmental goals and result in cost-effective pollution reductions. They can also act as a prelude to industry self-regulation and codes of practice and conduct, which in the long term are best for compliance and exceeding regulatory standards.
The enforcement of regulations is a critical component to the success of an international regime seeking to reduce environmental impacts. However, studies throughout international waters and in various national contexts have pointed to lack of compliance, lack of enforcement and monitoring capacity, and penalties which are unlikely to deter violations as weak links in the chain between regulatory mandates and environmental outcomes. This is true for the regulations under MARPOL, which cover a wide variety of oil and chemical pollution in addition to pollution by ships and sewage. While the rate of violations may be low, certain types of violations, particularly illegal oil discharges, can have severe localized impacts, and over time significant damage can be done to ecosystems due to chronic low level violations. Research shows that incentive structures matter for industry compliance with regulations. The stronger the likelihood of eventual detection and punishment, the more likely industry is to comply rather than factor the cost of protection into the price of boats, or risk paying expected fines as a cost of doing business. This is consistent with studies on the United States Clean Air Act, where installation of pollution abatement equipment increased as a function of the expected probability of a facility being inspected.
4.1 Compliance and Enforcement Issues
The following scenario is often quoted as an example of the difficulty in enforcing regulations that carry an extra financial burden to shipowners. At MEPC 50 in 2003, the Baltic Sea states proposed a designation of the Baltic Sea as a Special Area under MARPOL Annex IV to prevent further pollution by passenger ships. This proposal was met with opposition from several EU states and shipowner groups, who argued that the extra financial cost for shipowners to refit or construct new ships with sewage treatment plants was not justifiable. Although the proposal was accepted and is due to come into force in 2013, the fact that Annex IV has been ratified by all Baltic Sea states with the exception of Russia and Finland shows the difficulty in reaching a compromise between environmental sustainability and the economic concerns of shipowners, particularly in an industry with great economic disparity between different countries.
However, the introduction of environmental legislation has not necessarily led to effective enforcement. Compliance remains an issue for many shipowners, who can often avoid adhering to legislation due to lack of effective enforcement, the absence of suitable sanctions, and the provision to avoid compliance on technical grounds. The very act of trying to enforce environmental legislation is made more difficult by the transitory nature of shipping, which is not confined to a specific geographical area and can easily avoid legislation simply by moving elsewhere. This is particularly relevant to MARPOL, which is often only enforced effectively at a regional level, with Port State Control measures often preventing widespread pollution on a global level.
4.2 Technological and Financial Barriers
Technological barriers largely revolve around the availability of new technology and the investment required to embrace such practices. In other cases, the knowledge and skills required to implement various technologies are lacking. One clear example of this is the slow uptake of energy-saving devices, such as new hull designs or more efficient engine technologies. There have been significant advances in fuel efficiency in recent years; however, many ship owners and operators are unaware of how this can be achieved or have simply not invested in such technologies. This is one area where the EEDI has the potential to bring about change by creating awareness of the link between design efficiency and operational costs and thereby encouraging improved energy efficiency in the operation of ships. The requirement to build new ships to meet the specified energy efficiency levels will also avoid an issue that has been prevalent in the past, where environmentally unfriendly vessels have been disproportionately operated in the belief that the lower fuel costs outweigh the higher capital cost of a more efficient ship. Despite the long-term benefits, investment in new technology can often be viewed less favorably in the short term due to the deterrent of higher costs and unfamiliarity. This can be particularly difficult in the uncertain economic climate of today, where the shipping industry has already been subject to increased operating costs and financial risks.
4.3 Collaboration with Stakeholders for Continuous Improvement
The future growth and success of a company or industry is often determined by its willingness and ability to adapt to change and continuously improve itself. This is particularly relevant to the shipping industry as it faces increasing pressure to comply with and eventually exceed current environmental and social standards in a cost-effective manner. The implementation of changes to international regulations governing ship construction, operation, and disposal, as well as growing regional regulation, is imposing a need for the industry to develop a proactive rather than reactive approach to environmental and social responsibility. Continuous improvement can be defined as an ongoing effort to improve any aspect of an organization or an industry that will lead to delivering increased customer value or improved productivity. The concept will involve an initial learning period, where new practices are developed and applied, followed by a period of sustained improvement until the practice becomes standard throughout the organization. The IMO defines the continuous improvement of the industry through the delivery of its mandates as a key long-term challenge. The effectiveness with which the industry can achieve continuous improvement and the methods by which it is facilitated can be considered a key success indicator for the future sustainable development of the industry. High-level collaboration with stakeholders is expected to be a major factor influencing the rate and success of changes to industry practice. This section will examine the key changes desired of the industry, the stakeholders involved, and methods of collaboration expected to bring them to fruition.

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