The CO2 barometer

There are a few ways of expressing this: total tonnes of CO2, CO2e (‘equivalent’, also factoring-in gases such as methane and nitrous oxides), or an ‘intensity factor’ such as CO2e per teu or metric tonne of general cargo handled.

The UK Government has announced that large firms (with over 250 staff or a £36m turnover) will be required to report their energy consumption, performance and GHG emissions data to the public, under a Streamlined Energy and Carbon Reporting (SECR) Framework, from April 2019. This will capture many maritime organisations. The data must be reported in company accounts, in a paper report.

Despite the demise of the unpopular Carbon Reduction Commitment Energy Efficiency Scheme, the need to quantify carbon emissions is simply not going away. Warnings about climate change risks, such as increased intensity of storms, have been around for decades so why would a port not be interested in looking at its emissions with vigour?

Carbon footprints are derived by multiplying actual energy consumption by the latest Emission Factor. Like the 1,200 “listed” companies already subject to mandatory reporting, rookie maritime carbon reporters will need to report their: scope 1 “direct” emissions (derived from the consumption of fossil fuels, for example, diesel in straddle carriers); and scope 2 “indirect” emissions (for example, from the purchase of electricity to power gantry cranes and terminal lighting). They’ll also need to include an intensity factor but not scope 3 “indirect” emissions (for example, business travel, contractors’ activities) which are voluntary. Those who already hold years of data will be ahead of the curve.

Volume issues

The problem for ports is that as trade increases, so does absolute tonnage of CO2e because the port is busier and total moves are on the increase. The Government will not be too sympathetic to that because the UK has committed to reduce its total emissions under international conventions. This is top down.

From year-to-year, the challenge is for port companies to quickly ascertain the areas in which it can reduce its consumption of fuel and energy. A bottom-up inventory of sources of consumption is the best way to start. And why not get the financial team to run with it? After all, they’ll have access to all the data on total petrol and diesel purchased and hold copies of the electricity bill!

The government expects savings of £1.5bn by 2035 via improved awareness of energy efficiency. Annual GHG emissions reductions could be equivalent to 750,000 tonnes of CO2 (the same as around 20 x 1.5m teu container terminals) while four terawatt hours of annual energy savings will be realised. In turn, I expect significant cost savings commensurate with successful reductions in consumption.

There’s a twist though. Port companies will be required — “where practical”, says the UK’s Department for Business, Energy and Industrial Strategy — to also report emissions from transport, covering road, rail, air and shipping. That is clearly easier said than done. It will be interesting to see what kind of answers ports get from requests to visiting ships for fuel data. The lines of responsibility and double-counting will become blurred here but perhaps it’s an attempt to get people in the supply chain communicating.

Charles Haine is technical director for Maritime at WSP.