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Third IMO Greenhouse Gas Study 2014

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236 <strong>Third</strong> <strong>IMO</strong> GHG <strong>Study</strong> <strong>2014</strong><br />

particularly since the 1980s. This is evident in Figure 24, where the percentage of adjustment due to exportimport<br />

discrepancies never exceeded 10% prior to 1980, but always exceeded 10% after 1980. In fact, the<br />

percentage adjustment due to export-import allocation uncertainty has never been lower than 22% since<br />

1982. More recently, Table 16 and Figure 25 illustrate the top-down adjustment for 2007–2011. During these<br />

years, the average adjustment due to export-import allocation uncertainty averaged 28%.<br />

The secondary source of uncertainty, measured by the quantity of adjustment that is supported by our analysis,<br />

derives from the excess balance of fuels that were transferred among domestic consumption sectors in national<br />

inventories. This discrepancy exists because deduction reclassification of energy products in one or more fuel<br />

sectors remains undocumented as an addition reclassification in another sector. In other words, fuel-transfer<br />

deductions appear to be blended into marine bunkers to meet ship/engine fuel quality specifications without<br />

accompanying documentation reclassifying them as added to the marine fuel sales volumes. The trend on this<br />

error only slightly increased from the 1970s to mid-1990s, and the magnitude of the error, as a percentage of<br />

marine fuel sales, never exceeded 2% until 1997. Since 1997, the contribution to uncertainty in marine fuel<br />

statistics has more than doubled; nonetheless, during the 2007–2011 period, the average impact on marine<br />

fuel statistics of approximately 3% still remains small compared to export-import allocation uncertainty.<br />

Tertiary sources of uncertainty exist, including different statistical approaches on data collection, reporting<br />

and validation. These have been observed and reported in the Second <strong>IMO</strong> GHG <strong>Study</strong> 2009 (see Table 3.1<br />

of that report). Data accuracy is an ongoing QA/QC effort by IEA and others to help minimize these sources of<br />

error and uncertainty. Our work for this update indicates three insights about the nature of uncertainties that<br />

we judge to be tertiary, or smaller than those discussed above.<br />

1 The impact of these uncertainties cannot be shown to be consistently biased; in other words, the sign<br />

of a potential adjustment appears to vary from year to year;<br />

2 Little evidence supports a cumulative effect on marine fuel sales statistics; in other words, the<br />

magnitude cannot be shown to be increasing or decreasing over time; and<br />

3 No uncertainty adjustment can be quantified from the existing statistical differences.<br />

The combined error in recent years associated with these uncertainties ranges from approximately 64 million<br />

tonnes to approximately 87 million tonnes of fuel, as indicated in Table 16 for 2007–2011. Incidentally, the<br />

2007 calculated adjustment would reconcile within 1.2% of the top-down statistics with the activity-based<br />

estimate of 333 million tonnes reported in the Second <strong>IMO</strong> GHG <strong>Study</strong> 2009.<br />

Uncertainty in top-down allocations of international and domestic shipping<br />

We anticipate limited ability to evaluate or reduce allocation uncertainty within top-down fuel types. This<br />

could mean that a remaining key uncertainty for <strong>IMO</strong> will be the designation of top-down marine bunker sales<br />

as domestic or international, without additional empirical data. Options include:<br />

1 Treating reported allocations in existing IEA statistics as certain, and using these to allocate the fuel<br />

adjustments quantified in this uncertainty analysis;<br />

2 Recognizing that allocations in the statistics are also uncertain, and studying ways to adjust both<br />

reported fuel volumes and the adjustments quantified here using the same top-down assumptions,<br />

evidence and conclusions;<br />

3 Treating as independent the marine fuel sales data and the adjustment quantified by uncertainty<br />

analysis using different top-down assumptions, evidence and conclusions; and<br />

4 Coordinating top-down and bottom-up allocation approaches to leverage insights and produce<br />

mutually consistent allocation algorithms.

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