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1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics and Technology Management Norwegian University of Science and Technology, NTNU Lloyd’s Register of Shipping, 18.02.04

1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Page 1: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Sustainability challenges in shipping

Annik Magerholm FetProfessor, environmental management and life cycle

assessment,Department of Industrial Economics and Technology

Management

Norwegian University of Science and Technology, NTNU

Lloyd’s Register of Shipping, 18.02.04

Page 2: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Norwegian universities

Page 3: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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NTNU – Trondheim

Page 4: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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NTNU has 7 faculties:Faculty of Engineering Science and Technology

Faculty of Natural Sciences and Technology

Faculty of Information Technology

Mathematics and Electrical Engineering

Faculty of Architecture and Fine Art

Faculty of Medicine

Faculty of Arts

Faculty of Social Sciences and Technology Management

Page 5: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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My own background of relevance to shipping

Different research projects and consultancy work for the shipbuilding and shipping industry

PhD in "Systems Engineering Methods and Environmental Life Cycle Performance within Ship building and Shipping Industry“

Page 6: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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1994

1998

2001

2004

Cleaner Production at

shipyards

Waste minimization,

shipyards

Enclosed systems for sandblasting

High pressure water blasting

Bottom hull cleaning water

treatment

System analyzis and

life cycle approach

Environmental management in a life cycle perspective,

methodlogical development for shipbuilding and shipping:

LCA and LCC

EPIs and EPE

EMS and EMAS

Manual for CP and

environmental management at

shipyards

Indicators and environemntal reporting

at shipyards

Indicators and environemntal

reporting in ship transport

Industrial ecology and eco-efficiency

sustainability reporting

Page 7: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Goal and scope

definition

Inventory analysis

Impact assessment

Interpretation

Direct applications: Product development

and improvement Strategic planning Public policy making Marketing Other

• Classification: the parameters from the inventory are noted under the relevant impact categories.

• Characterization: the relative contributions of inputs and outputs are assessed to their assigned impact categories.

• (Normalisation: the results are normalised against e.g. national figures)

• Valuation: the relative importance of different environmental impacts are weighted against each other.

LCA-methodology ISO 14040-48

Page 8: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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The use of LCA in two projects:

1. ”Life Cycle Evaluation of shiptransportation - Development of methodology and testing”

2. “Environmental Performance of Transportation - A Comparative Study”

Cooperation between NTNU, Det Norske Veritas and Aalesund College.

Supported by Norwegian Ship-owners Association and the Norwegian Research Council.

Page 9: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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”Life Cycle Evaluation of shiptransportation - Development of

methodology and testing” Goal: To demonstrate that the LCA-method is applicable for environmental life cycle evaluation for shipsCase study: M/V Color Festival

Page 10: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Studied system:

6. Machinerymaincomponents

2. Hull1. Shipgeneral

3. Equip.for cargo

4. Shipequip.

5. Equip.for crewandpassengers

7. Systemsfor machinerymaincomponents

8. Shipcommonsystems

COLOR FESTIVAL

20-26 Hullmaterials

27. Materialprotection, external

28. Materialprotection, internal

60. Dieselengines

63. Propellers

64 Boilers

System

Sub-systems

Systemelements

Page 11: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Flow chartHull materials

Construction

Operation

Maintenance

Scrapping

Sandblasting

Welding

Transport of steel

Cutting of steel shears

steel

Diesel

DieselSand

Electricity

Electricity

Emissions

Emissions

Transport ship todemolition yard

Cutting steelshears

Diesel

Electricity ScrapSteel for recycling

Emissions

Same processesas for buildingphase

EnergyRaw material Emissions

Materialloss

Page 12: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Environmental impact categories:

The impact categories for this evaluation are:• greenhouse effect, • ozone depletion, • acidification, • photo oxidant formation, • eutrophication, • winter smog formation, • ecotoxicity to water, • human toxicity, • solid waster, • material and energy use.

Page 13: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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The ship’s life cycle phases’ contribution to the

environmental impact categories

Page 14: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Example: Comparing two antifouling

systemsNew system:

• 10% less use of primer and antifouling

• Water jet blasting instead of grit blasting during maintenance.

• Docking every third year.

• 20% less leakage of TBTO during operation.

• 5% increase in fuel consumption.

Page 15: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Characterisation results for comparison of two

systems

Page 16: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Conclusions from the LCA-project:

• LCA can be applied but it is very time consuming Existing valuation techniques in LCA-tools should be

used critically. The choice of functional unit is important when

different systems are to be compared against each other.

The most important environmental aspects from the life cycle of a ship are:

fuel combustion with related emissions and leakage from antifouling during the operation of the ship,

cleaning and recoating during maintenance, non-recyclable materials and local pollution in the

scrapping phase.

Page 17: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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The project ”Environmental Performance of

Transportation - a Comparative Study” The goal was to establish models and

guidelines for the documentation and comparison of environmental performance of different transport chains.

This required:• a common set of environmental impact

categories for the transport sector, and• principles on how to allocate infrastructure

activities to the environmental burden of the transport chain.

Page 18: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Case 3: Transport of frozen fish

Chain A

Chain B

Term o Tra ile r H F R /N orfrig

R oad Å lesu n d - O s lo , K ie l - P a ris

R oad tran sp ort

H arb ou rs in O s lo an d K ie l

M /V K ron p rin s H ara ld(o r M /V P rin sess e R ag n h ild )

W ate rb orn e tran s p ort

C h a in B

Term in a l in I jm u id en

Term o Tra ile r H F R /N orfrig

R oad I jm u id en - P aris

R oad tran sp ort

H arb ou rs in Å les u n d ,M å lø y an d I jm u id en

R oR o-sh ipM /V N ord ja rl

W ate rb orn e tran s p ort

C h a in A

Page 19: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Inventory results (per ton fish)Impact category Compound Chain A Chain B Charact. Contr. Normalisat.

Climate change CO2 84 kg 138 kg 1  

N2O 0,24 g 0,71 g 320

CH4 1,5 g 4,4 g 25 EP(j) 55 598 000 000

Acidification SO2 938 g 867 g 1,00  

NOX 1286 g 1802 g 0,70

NH3 0,022 g 0,064 g 1,88 EP(j) 237 448 000

Toxic contam. Pb (to air) (no data) (no data) 160  

TBT 0,10 g 0,034 250

Cu     2 EP(j) 8 453 000

Local air pollut. particles 24 g 70 g 1   344 700 000

Photo oxid. form. NMVOC 36,6 g 106 g 1   24 800 000

Noise Area >55dBA 10,4 m2 94 m2 1   36 146 088 884

Eutrophication NH3 0,022 g 0,064 g 3,64  

NOX 1286 g 1802 g 1,35 EP(j) 671 081 500

Energy consump. MJ 930 MJ 1812 MJ 1   813 PJ

Land use Area (m2) 0,23 m2 0,66 m2 1   485 719 000

Page 20: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Normalised inventory results

0

0,000000001

0,000000002

0,000000003

0,000000004

0,000000005

0,000000006

0,000000007

0,000000008

0,000000009

0,00000001

Climate change Acidif ication Toxiccontamination

Photo oxidantformation

Local airpollution (dust)

Noise Eutrophication Energyconsumption

Land use

Impact categories

Rel

ativ

e co

ntr

ibu

tio

n

Transport chain A

Transport chain B

Page 21: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Valuation

• The Eco-indicator 99• EPS• The ExternE Methodology• Valuation according to political goals• Valuation according to panel procedures• Valuation according to the

recommendations in the OECD project on Environmentally Sustainable Transport (EST)

Page 22: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Weighted results, case 3:

According to political goals

Transport chain A Transport chain B

Land use

Energy consumption

Eutrophication

Noise

Dust

Photo oxidant formation

Acidification

Climate change

Transport chain A Transport chain B

Land use

Noise

Particulates

VOC

NOX

CO2

According to the EST-project

Page 23: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Case 2: Passenger transportation

Svolvær

Chain A - waterborne

Chain C – Road-waterborne

HSLC trp.system Aircr. trp. system Road trp.system Ferry trp.system

Bodø harbour Bodø airport Road Skutvik harb.

Chain B - Aviation

Road trp.system

Road

HSLC

Svol. harbour

Aircraft Taxi Ferry

Svol. harbour Svol. airport

Taxi

Page 24: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Interpretation

HSLC chain Aircraft+taxi chain Car+ferry chain

Land use

Energy consumption

Eutrophication

Noise

Dust

Photo oxidant formation

Acidification

Climate change

According to political goals/priorities

According to the EPS-method

CO2CO2

CO2Fuel

Fuel

Fuel

NOx

NOx

0

5

10

15

20

25

30

35

40

45

50

HSLC chain Aircraft+taxi chain Car+ferry chain

EL

U/p

as

se

ng

er

Page 25: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Interpretation according to recommendations in the EST-project

HSLC chain Aircraft+taxi chain Car+ferry chain

Land use

Noise

ParticulateVOC

NOX

CO2

Page 26: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Eco-efficiencyreporting

Environmentalreporting

Ecologic aspects

Economicaspects

Social aspects

Sustainability reporting

Socio-ecologic indicators

Eco-efficiency indicators Socio-economic indicators

Page 27: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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The Eco-efficiency Concept

Eco-efficiency = product or service value environmental influence

 

Eco-efficiency indicator = economic performance indicator environmental performance indicator

Page 28: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Important initiatives:• UNEP stands behind the Global Reporting Initiatives

(GRI), established in 1997. New framework 31.August 2002.

• For OECD it became a key priority already in 98 to integrate environmental, economic and social considerations.

• The WBCSD is united by a shared commitment to sustainable development. Eco-efficiency is at the heart of its philosophy.

Page 29: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Global Reporting Initiative (GRI) - guidelines • the first global framework for comprehensive

sustainability reporting, encompassing the "triple bottom line"

• will become the generally accepted, broadly adopted framework for communicating information about corporate performance.

• give guidance to reporters on selecting and using indicators.

Page 30: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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”It was the GRI reporting process that prompted our announcement last fall to increase the fuel efficiency of our fleet

by 25 percent by 2005.”Deborah Zemke,

Director of Corporate Governance,

Ford Motor Company,

April 2001

Page 31: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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THE GRI-INDICATOR FRAME-WORK

Page 32: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Indicators and sustainability reporting

Environmental performance indicators can be selected according to the OECDs EST recommendations: land use, noise, particles, VOC, NOx and CO2.

The indicator-values per unit transport can be calculated based on the following input parameters: fuel consumption, distance, emission factors, engine power and exploited capacity

According to GRI a sustainable development report shall also present social and economic performance indicators

Page 33: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Some important questions:

Which environmental, social and economic performance indicators are of relevance for shipping?

Who are the most relevant stakeholders that can give input?

How can the indicators be used to communicate the wanted information from shipping companies to the stakeholders and interested parties?

Page 34: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Why am I at Lloyd’s? I have a sabbatical year, the objective is to update my knowledge

on selected topics:• The first six weeks at Lloyd’s Register, theme: SUSTAINABILITY

REPORTING. • Springtime in Norway following up my research projects• The autumn at the University of California Santa Barbara,

theme: SUSTAINABILITY MANAGEMENT ADRESSING ECONOMIC, SOCIAL AND ENVIRONMENTAL CHALLENGES.

Objective of my project at Lloyd’s: • to study and develop methodologies and indicators for reporting

of environmental performance of transport systems, especially for the maritime sector, hereunder also methodologies for comparing and ranking of environmental performance.

Indicators and reporting requirements were pointed out as an important area for future development by the EU-thematic network TRESHIP where LR by Gill Reynolds was one partner.

Page 35: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Results so far:• Overview of the most recent documents on

sustainability reporting and assurance of such. This is documented in a report which I will use as a basic for further work this year, as teaching material for my student and in other research projects.

• Participated in meetings at – UCL – Systems Engineering,– the institute of marine engineering, science and

technology (IMarEST), – the Royal Academy of Engineering, – the Institute of Mechanical Engineering (IMecE). In addition I have had telephone contacts and e-mail

contacts with other important institutions/organisations.

Page 36: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Further collaboration:Gill R. and I have the outlined a preliminary draft of a

scientific paper addressing the following aspects:• International strategies on sustainability and why focus

on sustainability in shipping• Survey of the documents that point out the direction and

challenges to sustainability reporting for the transport sector, especially for maritime transport

• Survey of how this is practiced by transport companies (state of the art), and which sustainability indicators that are in use already

• Recommendations for shipping on how to select the most appropriate indicators to meet the future challenges for sustainability reporting in shipping, and the use of the reports as a communication tool with the stakeholders and interested parties.

The plan is to submit this to The journal of Engineering for the maritime environment (?) within ????.

Page 37: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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OTHER CURRENT WORKFunded by the Norwegian Research Council:Program Productivity 2005, Industrial Ecology: • Leader and co-ordinator for the research

program, 01.06.03 – 31.12.05• Research strategy "Eco-effective value

chains", 1999 – 31.12.05Program PULS:• Eco-efficiency and value chains in the

common goods market, 2003-2004. Funded by Innovation – Norway:• Environmental Product Declaration (EPD)

and Product Specific Requirement (PSR) for Nordic furniture

Page 38: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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PhD-students

• Dahlsrud, A.: Environmental management and Corporate Social Responsibility (CSR)

• Michelsen, O.: Eco-efficiency and value chains

• Schau, E.: Environmental analysis of the value chain of fish emphasising the fishing vessel

• Andersen, K.: Environmental auditing in local communities

Page 39: 1 Sustainability challenges in shipping Annik Magerholm Fet Professor, environmental management and life cycle assessment, Department of Industrial Economics

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Thank you for your attentionMy e-mail adress:

[email protected]