The Daily View: Fair winds?
DEBATE over the EU’s wind propulsion bonus goes to the heart of the challenge of crafting the right green policies for shipping.
The 5% compliance bonus in the FuelEU Maritime standard applies whether ships are using the sails or not. Makers of rival green technologies may wonder if this is fair.
The bonus matters because it is there in black and white, in a crowded market where saying with confidence how much fuel and CO2 your magic device will save is a huge problem. Without definite ROI numbers to plug into a financial model, most shipowners will not risk the investment in a new, unproven technology.
The wind bonus creates a loophole, and in theory could make it easier to comply (in combination with pooling and other fudge factors) without reducing GHG emissions. But no one is going to stick a sail on their ship just for this; the broader business case has to make sense.
Sailmakers argue that far from being an unfair boost, the FuelEU bonus isn’t big enough. When the savings far exceed 15% of a ship’s energy, as they sometimes will, shouldn’t that count for something?
And of course, the wind doesn’t always blow. Many factors influence how well a sail can work. So how can we be sure they are worth buying? You still have to be brave to invest, despite the recent hype.
Specific policy support is absolutely needed, but it has to get the balance right.
Help wind power too much and a regulation can be inefficient, wasteful and bad for competition. But go too strict and you risk delaying the technology’s progress, at a time when it looks like one of the better ways for ships to cut emissions in the near term.
The elephant in the room is how the International Maritime Organization decides to treat wind when it makes similar, global GHG rules in October. More on that later in these pages.
For now, fair winds and following seas.
Declan Bush
Senior reporter, Lloyd’s List
Content Original Link:
" target="_blank">
