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Canadian ports offer discounts for low-carbon operators

Canadian ports offer discounts for low-carbon operators
Canada’s Prince Rupert Port Authority (PRPA) has followed local Port Metro Vancouver to become the second in the world to offer financial incentives to vessels with low carbon emissions.

PRPA, whose "Green Wave" programme came into effect on 1 January 2014, givea out discounts on port dues to vessels which rate highly on the ‘A-to-G’ greenhouse gas emissions rating scheme, first proposed by Rightship and environmental nonprofit Carbon War Room. The port has received 19 vessel calls during the first two weeks of the scheme, 11 of which were using the A-to-G rating, and is expected to give out $100,000 over the course of the year.

“Through an environmental incentive program with qualification standards consistent across global shipping, we are accelerating the industry’s movement toward greater efficiency and sustainability,” said Don Krusel, PRPA president and ceo. “As more members of the worldwide port community launch similar initiatives, common systems of measurement and reward are vital to wide adoption and success.”

PRPA joins Port Metro Vancouver, Canada’s largest and busiest port, which has already given discounts equating to $1.1m – approximately 10% of revenues from harbour dues - under its equivalent "Eco-Action’" programme since its inception at the beginning of 2013.

Despite provoking some resistance in the shipping industry, over 70,000 vessels have been rated using Rightship’s A-to-G framework, and 16 charterers, representing 21% of the non-container charter market, as well as 1.6bn tonnes of commodities and 20,000 vessel movements annually, use the rating system for vessel selection - “Survival of the greenest”, according to RightShip chief executive, Warwick Norman.

“Owners that invest in the technology to reduce emissions are being rewarded by charterers using their vessels and ports providing discounted harbour dues. If this leads to a two-tier market then less efficient vessels will be driven out of the market.”

Meanwhile Carbon War Room president Jose Maria Figueres added: “It is great to see the ports joining the pioneering charterers who are using the A-to-G rating to enhance their commercial operations. As important demand-side stakeholders, ports have a key role to play in encouraging greater use of efficiency rating systems and in rewarding shipowners who invest to make their fleets more efficient.”