level playing field: the sustainable way of solving ... · • use of lightweight, high-strength...
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LEVEL PLAYING FIELD:THE SUSTAINABLE WAY OF SOLVING ENVIRONMENTAL PROBLEMS
Influencing policymaking: Towards a healthier Baltic Sea and low emission maritime transportHelena Kivi-Koskinen
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen2
Content
1. Ruukki in brief
2. Sustainability 3. Level Playing Field
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen3
Ruukki in brief
• Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries.
• The company has strong know-how in special steels and a wide selection of metal products and services.
• Our business areas are construction, engineering business and steel business.
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen4
Ruukki todayConstruction
Steel production and processing
Sales and services
Engineering• Net sales of €2.4 billion in 2010• Strong presence in Nordic
countries and Eastern Europe • Growth focus on emerging
markets• Personnel around
11,700 in 27 countries
Sustainability at Ruukki
Corporate responsibility in business operations
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen6
Climate change creates challenges and opportunities for Ruukki
Energy-efficient construction
Renewable energy production
Fuel savings arising from slimmer structures in mobile machines and material production with minimum emissions
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen7
Research and development –focus on energy efficiency
• Focus areas of our R&D
– Construction efficiency, especially energy efficient solutions
– Cabins, booms and equipment for the energy industry
– High-strength, wear-resistant and coated steels for the engineering and automotive industry and construction
• In 2010 we invested €27m in R&D
Ruukki’s energy panels reduce energy costs e.g. a building's heating costs.
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen8
Energy-efficient office building with steel solutions
• Energy saving potential 40-70 %– Lightweight wall and roofing elements
• Optimal thermal insulation• High quality windows and frames• Good air tightness
– Efficient heat recovery from ventilation– Optimum use of mass in structures– Advanced lightning solutions
• Customised steel structures provide alternatives to use renewable energy
– Solar energy panels in facades and roofing
– Integrated use of geothermal energy in steel foundations (piles)
Environmental impacts of steel construction
+ Low energy consumption in use
+ Recyclability+ Strong and lightweight
structures+ Shorten construction time+ Less on-site waste
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen9
• Use of lightweight, high-strength steel, Raex 400, reduces container weight by 800 kg
• Savings for container end-user*:– €72 600– energy: 60 000 litres of fuel (2 000 GJ) – CO2 reduction: 160 t
• Lifetime CO2 and energy savings are thirty-fold compared to production of a container
* Tandem trailer, 150,000 km/a, lifetime 10 a, €1.21 per litre diesel (EU average 10 Oct 2008)
More efficiency in transportationCase: Lifetime savings of a container
Energy consumption and CO2 emissions in
container production
Container’s lifetime CO2 and
energy savings in operation 9.6%
Container’s lifetime energy
consumption and CO2 emissions
CO2 35 x Energy 27 x73 GJ / 4.6 t
2 000 GJ
160 t
19 000 GJ
1 496 t
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen10
LEVEL PLAYING FIELD:The sustainable way of solving environmental problems
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen12
Development of the environmental legislation
Regulation of production
Regulation of product life cycle
stricter limits more regulation
Development
IPPC/IED BREFBAT
VOC
RESWhiteCertificates
NEC
CO2 ETS
Landfill Waste LoW&EoW EMAS
SO2/NOx IMO
EQSEnergy&Material
EfficiencySoil
E-PRTR
EnvironmentalLiability GPPEcoDesign
EPBD EcoLabelling
Eurovignette
EnergyLabelling
ELVWEEE
CLPREACH
RoHS
Packaging
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19711972
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19951996
19971998
19992000
20012002
20032004
20052006
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0
50
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calendar year
Source: EUR-LexCategory: 15.10 EnvironmentCovering:• General provisions and programmes• Nuclear safety and radioactive waste• Water protection and management• Monitoring of atmospheric pollution• Chemicals, industrial risk and biotechnology• Management of space environment and resources• Conservation of wild fauna and flora• Waste management and clean technology• International co-operation
Number of legislative dossiers adopted in EU per calendar year
Amount of environmental agreements and regulation is increasing
Steel business is carbon leakage sector
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen15
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen16
No global level playing fieldMARPOL 73/78 ANNEX VI Reg. 14S/ECA – SOx Emission Control Areas
• Countries with part of the coast in ECA• Countries with water only in the ECA
• The Emission Control Area• Countries without coast in ECA
• Countries with part of the coast in ECA• Countries with water only in the ECA
• The Emission Control Area• Countries without coast in ECA
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen17
SO2 emissions from maritime transportation year 2000
Source: Finnish Federation of Industries EK
• No level playing field within Europe, although the environmental and health impacts are the same
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen18
0,0
1,0
2,0
3,0
4,0
5,0
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
International (and other EU countries)If applicablethe English Channel, North Sea, Baltic Sea
S02 requirements in different areas havetoo wide margin
Source: Finnish Federation of Industries EK
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen19
RAAHE
LuulajaKostamus
GdyniaGdansk
Storugns
Stettin
Iron ore and pelletsLimeCoalCoke
Koverhar
USACanadaAustraliaAfrica
St. Petersburg
Kaliningrad
Ruukki’s raw materials to Finland 2010 Total maritime transportation 5 620 k tons
• Finland is dependant on sea transports
• 75% of import and 89% of export is transported by sea
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen20
Raahe
Lappohja
Szczecin
Hull
Antwerpen
USA, Muut kaukomaat
Ravenna
Drogheda
BilbaoAveiro
Fredericia
RostockHampuri
Vejle/Kolding
Hämeenlinna
RotterdamTerneuzen
Koverhar
Ruukki’s product transportationTotal maritime transportation 1 046 kt
•There is long distance to main markets
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen21
Transportation costs are higher in Finland
• Severe ice conditions increase the transportation costs in Botnian bay (ice strengthening, ice blocks)
• Number of ice days in Raahenearly 120 on average year
• Botnian Bay is shallow, ships are smaller
Ice Extent in Different Winters
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen22
No possibility for modal shift in Finland
• Study shows that modal shift is no option for Finland
• Finnish exporter industries are part of carbon leakage sector, no possibility to transfer the costs to product prices
Figure 5: Initially selected internal freight corridors where modal shift may occur
Source: COMPASS: The COMPetitiveness of EuropeAn Short-sea freight Shipping compared with road and rail transport. EuropeanCommission DG Environment. 18 August 2010
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen23
Modal shift increases emissions elsewhere
• If emissions increase elsewhere, is it necessary to have 0,1 % SO2 requirement at open sea?
Figure 7: Freight corridors that may increase disproportionately.
Source: COMPASS 2010
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen24
Emission control costs increase 30-50% in maritime transportation• Estimated bunker fuel costs to
increase by 60-70%• Gas oil imports to EU will
increase 65%
• Costs equivalent of 4 000-24 000 man-year in Finnish external trade sector. In metals industry: 8,5 % of the manpower
Source: COMPASS 2010
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen25
Technical solutions uncertain as mitigating measures
• Scrubbers only in test phase, no COSS committee procedure for any technology yet
• Exhaust gas abatement technology is only a solution for 1/3 of the Finnish fleet. For those ships it means an investment of 162 million Euros
• Retrofitting is possible during maintenance. The maintenance cycle is three years.
• New infrastructure needed in harbours– LNG ships need refuelling infrastructure– Scrubbers need reception facilities
19.05.2011 www.ruukki.fi | PUBLIC | H.Kivi-Koskinen26
Industry welcomes global sulphur limits in 2020/2025
• Concerns of industry remain serious:– distortion of competition within EU and globally– modal back shift in EU/no option for modal back shift in
Finland– technical solutions seem to be unrealistic in 2015– new technology needs compensation -> compliance with
existing rules of state-aid and competition• Could the sulphur limit be 0,5% instead of 0,1%?• Implementation of the Marpol sulphur rule and the EU
directive must be postponed to be inline with global restrictions