On April 26th in Singapore, Sustainable Shipping Initiative (SSI) launched a series of practical, collaborative action plans aimed at developing a sustainable shipping industry for the future. Wärtsilä and other members have committed to deliver first results before the end of 2013.
Presented as part of Singapore Maritime Week, the action plans are a significant step for the SSI as it works toward achieving its vision of a shipping industry that is both profitable and sustainable by 2040.
“The SSI has committed to an ambitious vision for the industry, and these action plans are a vital step in us achieving this vision. Work is focused on creating a clear framework that the wider industry can use to adopt more sustainable practices. Over the next 18 months, members will be developing new prototypes, technologies and financial models that promote sustainability as well as the guidelines that businesses need to implement change”, says Jonathon Porritt, Forum for the Future’s Founder Director.
Four working groups – results by the end of 2013
In order to work on the plans SSI members have been split into four initial work streams, with each one focusing on a different key area for the industry that have been identified as a key leverage point, and where there is most potential to work together to accelerate change. These include:
- Financing sustainable shipping
- Innovation in energy technology
- Closed loop materials management
- Credible benchmarking and standards.
Members have committed to deliver tangible results for each work stream before the end of 2013.
Wärtsilä to provide knowhow
Initially Wärtsilä will join the work stream on financing sustainable shipping together with ABN AMRO, Cargill, RSA, and United Nations Environment Programme Finance Initiative.
“Shipping is a volatile industry and today’s financing tools do not necessarily support the transformation of the industry as much as they could. We need new solutions and more flexibility. If we want to increase sustainability, we need ship owners, builders and operators to be able to put more focus on technological advancement supported by financing under competitive terms. In the coming months we hope to be able to propose new innovative and practical ideas which will help promote changes in the industry as a whole,” says Peter Jantzen, Head of Marine Life Cycle Solutions at Wärtsilä, who spoke at the event.
Each work stream will draw on members’ expertise spanning ship owning, chartering and operations to ship building and engineering, marine finance and insurance, banking, technical standards and global supply chain.
“We want to be an active participant in these important discussions that are now taking place in the industry. Wärtsilä’s technology development and lifecycle strategy is fully in line with the goals of SSI and we are at the forefront of knowhow on energy efficiency and proven environmental solutions, key elements in increasing the sustainability in shipping. This is why we’re also looking into participating the other work streams as well, especially the one focusing on technology”, continues Jantzen.
The four work streams
- Closed Loop Materials Management: The China Navigation Company (CNCo), DSME, Maersk Line and Carnival, together with Lloyds Register are focused on developing systems and practices to enable widespread adoption of closed-loop ship building processes. The goal is to achieve full transparency and accountability for the social and environmental impacts of all materials, from construction through to recycling of ships. Work will also focus on developing a process to manage these impacts, help companies realise the true value of ships at the end of their life and establish ways to further reduce the use of finite resources in future shipbuilding. The group will develop a strong prototype for closed loop recycling of ships to be shared with the industry.
- Financing sustainable shipping: ABN AMRO, Cargill, Wärtsilä and RSA are partnering with other leaders in finance, insurance and shipping to develop new approaches for the financing of sustainable ships. This includes piloting at least one new financial model that will reward sustainable performance.
- Energy technology: Bunge, Gearbulk, Rio Tinto, Lloyd’s Register, together with BP Shipping, Maersk Line and Cargill are leading efforts to make low energy technologies more affordable and available. Focused on the implementation gap – many lower-energy technologies available but are not being implemented at scale – the work stream will develop robust business cases, providing the information companies need to adopt large-scale eco-efficient technologies and techniques.
- Credible Benchmarking: How to use and improve Sustainability Rating Schemes in Shipping: WWF, Carnival, Lloyds Register, Maersk Line, DNV, RSA and Unilever are helping the shipping industry navigate the growing number of beyond-compliance rating schemes, which will enable greater uptake and drive improved sustainability performance. The group will develop a clear and comprehensive guide for how the industry use these standards, including recommendations on which schemes to adopt to suit the individual needs of individual shipping companies.
Find out more:
Earlier releases by Wärtsilä:
What is the SSI and who is involved?
The Sustainable Shipping Initiative is a cross-sector coalition of 16 global companies and two non-governmental organizations (NGOs), working together on an unprecedented scale to tackle some of the sector’s greatest opportunities and challenges. The group is working to achieve their vision of a profitable and efficient industry that has successfully minimized its environmental footprint by 2040. Initiated by Forum for the Future in conjunction with WWF, SSI members include: ABN AMRO, BP Shipping, Bunge, Cargill, Carnival, The China Navigation Co., Daewoo Shipbuilding, DNV, Gearbulk, Lloyd’s Register, Maersk Line, Rio Tinto Marine, RSA, Tsakos Energy Navigation, Unilever and Wärtsilä.