MICRONESIANCENTERforSUSTAINABLETRANSPORT

ACatalystforChange

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MICRONESIANCENTERforSUSTAINABLETRANSPORT

ACatalystforChange

1. PurposeofPaperThe Republic of the Marshall Islands has set a policy target of reducing itstransportemissionsby16%by2025.ItisthefirstPacificcountrytomakesuchacommitment. This paper provides background and a proposed framework forestablishingtheMicronesianCenterforSustainableTransportasasub-regionalinitiativeandacatalystforchangeinMajuro,RMI.

“SeventypercentoftheRMI’snationalenergyexpenditureisontransportation,incommonwithmostislandcountries.Vulnerabilitytoenergyshocks–especiallyin transportation – is amongst the greatest economic hazards for MarshallIslands. Increasing fuel efficiency and gradually substituting renewable biofuelsandenergiesintransportationwouldreducetheMarshallIslandssocio-economicvulnerabilitytoexternaloilpricerises,andalsomovethenationtowardenergyindependence”(RMI2013NationalReport).

RMI has requested USP coordinate establishment of a center of excellence inMajurotoprepareandimplementawholeofcountryRebbelib(navigationchart)forRMItotransitiontolowcarbontransportsolutions.Thiswillbeapilotforasub-regionalprogramtocascadetootherMicronesiancountriesandthentothewider regionandotherSIDSglobally. Sea transport is the firstprioritybut theMCSTwilladdressalltransportsub-sectors.

ForRMIandotherlowlyingislandstates,physicalsurvivalisdependentonglobalmitigationofclimatechange.Transporthasbeenlargelymissingfrominitiativesto de-carbonize both global and national economies. Transport is absolutelyessentialforconnectivitywithinandbetweenislandstates.Numerouspracticalsolutionsareavailableoremergingforlowcarbontransporttransition.Itisclearthatmanyofthesewillhavegreatestbenefitatthelocal level,especiallysmall-

scale shipping used by island countries. A growing number of leadinginternational research centers are offering to assist with cutting edgetechnologicaldevelopment,economicanalysisandknowledgeexchange. ThereisnoreasonwhyMicronesiacannotbetheprovinggroundforsuchtechnologiesandapproachesforotherSIDSandLDCs.

For such a transition to be sustainable long term it is critical that we beginpreparingandtrainingthecurrentandfuturegenerationsoftransportoperators,planners and decision-makers in industry and government. The MCST willpartnerwithregionalorganizationsandleadingresearchcentersanduniversitiestoachievethis.Appropriateandaffordabletransportsolutionsareessentialforimproved economic performance, trade, sustainable development andgovernment service delivery to our island based communities. Our task is toprepareapathwaythatachievestheseneedsusinglowcarbontechnologiesandmethods.

TheinitiativetoestablishtheMCSTwasconsideredandformallyendorsedbythe 15th Micronesian Presidents Summit as reported in the Boknake HausCommuniqué,July2015. ItisconsistentwiththePacificForumLeadersMajuroDeclaration 2013, UN S.A.M.O.A Pathway 2014, PIDF Suva Declaration onClimateChange2015andthePacificSmall IslandsStatesMoresbyDeclarationon Climate Change 2015. It is compatiblewithexisting regionalpolicy suchastheFrameworkonPacificRegionalismandtheFATSandFAESPanddesignedtobuildoffandincorporateexistingrelatedtransportinitiativesandprograms.

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2. TheCaseforTransitiontoLowCarbonTransportforRMIandotherPacificCountries

Pacific Leaders have consistently identified two critical barriers to sustainabledevelopment:

i. ClimateChange

Pacific Island countries are the most vulnerable to the increasing effects ofanthropocentricallycausedclimatechange.The2013MajuroDeclarationandthe2015SuvaDeclarationonClimateChangehavecalledonallpartiestodoalltheycan tomitigate climatechange.Pacific islandcountries’ contribution to climatechangeisnegligible.Maintainingaguardrailofnomorethana1.5othresholdforglobal warming is essential for the future survival of many Micronesiancommunities.Achievingthisassumesthat:

• Rapidde-carbonizationof the global economymust start now.By 2020 allsectors,includingtransport,needtohavepeakedandhavefirmpathwaystoagreed targets. If these pathways cannot be maintained it will requiregreatereffortandexpensetobemadeinthefuture.

• For the transport sector this must include international and nationalbunkers,assumingthataprinciplethatallsectorsmustcontributetheir“fairshare”.Ifsomesectorsdonotfullycontribute,theexcesswouldneedtobetakenupbygreatercontributionsfromothers.

ii. Fueldependency

TransportisthemajorityfueluserforPacificcountriesburning70%+ofregionalfuel imports. Suchdependency is crippling fornational economies andamajorbarrier to all socio-economic development. Our small scale and length oftransportation routesmakes Pacific fuel and transport costs the highest in theworld.

Transitiontolowcarbonisanopportunitythatmustbetakennow.

Atransitiontoalowcarbontransportfutureisacriticalstepinaddressingboththeseagendas.Tonotdosorisksongoingandincreasingdependency,especiallyas carbon based technologies become increasingly penalized. The uniquecharacteristics and challenges of the Pacific transport scenario meansappropriate Pacific solutions need to be developed locally. If addressedproactively, low carbon transition can provide long-term solutions totransportationissuesforPacificcountriesandcommunitiesbyprovidingoptionsthatarecleaner,moreaffordableandappropriatetoourcommunities.

The importance of sustainable transport for Pacific countries cannot beunderstated. Inversely to thecontinentalworld, sea followedbyairarehigherfuelusersthanlandtransport.ShippingmovesthevastmajorityofPacificgoods.Seaandairareessentialforconnectivityformanycommunitiesandforthemostvulnerable,seatransportistheonlyphysicalconnector.Itiscrucialfortradeandeconomic development and impacts upon virtually every sustainability andadaptation initiative. Land transport, although the smallest sector, is fastgrowing,especially inexpandingurbanareasreflecting increasedprivatemotorvehicle ownership and commercial vehicle use. Public expectation is of everincreasingavailabilityandhigherstandardsoftransportserviceacrossallsectors

Even in times of relatively low fuel costs, the Pacific faces unique transportchallenges. Long routes, minute narrow economies, imbalance in inward andoutward loadings, financing barriers, high risks and high infrastructure costsmeansPacificcountrieshavestruggledto find long-term,sustainable,andcost-viable solutions for transport. Sea and air transport underpin all economicopportunity. Domesticconnectivity is themostcriticalsectortoaddress;manyroutesareunviableanduneconomic.

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Everincreasingpolicy,regulatoryandtechnicalcomplexityplacesincreasingandunrealisticstrainsonPacificcapacitiesandresourcestooperateandadministerthesector.Climatechangewillmagnifythesebarriersandcoststogovernments,industry and communities. All aspects of the transport sector are highlyvulnerabletoclimatechangeeffectsandnaturaldisasters.

Addressing transition to a low carbon future requires a range of solutions. Allstakeholders, across government, industry and civil society, must be engaged.Policy, economic analysis, technology, climate proofing of existing and futureassets, trainingandeducationaspectsareall important. ThenationalRebbelibmust be backed by a strong integrated support programme of technicalassistance, capacity building, economic analysis and tool development andknowledge exchange. Robust data acquisition and analysis is an essentialbuildingblock.Achieving a transition to low carbon transport will require an integratedprogramme. There isno ‘one size fits all’ solution.While technologyadvancesfor both vessels/vehicles and their associated fuels is of critical importance,technical solutionscannotbeeffected in isolationand this isbeing increasinglyhighlightedinallresearchofthissector.Advancing technology, whether for asset, fuel or infrastructure, is insufficientunlessthepolicyandeconomiccontextisprovidedtoallowprivatesectororPPPuptake.The introductionofhybrid cars inFiji is a classicexample. Despite theproved advantages and savings of the technology, initial introduction failed toachieveanymarketpenetration.Ittookanenablingpolicyenvironmentthroughthe Fiji Green Growth Framework and financial tools in the form of reducedimport levies to herald a change. The private sector responded by ensuring

introductionofthetechnologywasbackedbyserviceandmaintenancecapacity.Theresultinguptakebyconsumersspeaksforitself.Foratransitiontolowcarbontransporttooccuratanysignificantscale,multiplepriorities must be met. These include introduction of renewable energytechnologies, energy efficiency operational and technological change, fuelsubstitution, and market based measures and incentives. All must beunderpinned by strong economic analysis (appropriate to Pacific scenarios andnot simply extrapolated from the global discourse) and investment in researchanddevelopmentandcapacitybuildingacrossthesector.

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3. MCSTFramework

Vision/Goal: AcenterofexcellencetoprepareandimplementawholeofcountrystrategytotransitiontheMarshallIslandstoalowcarbontransportfutureasapilotandcatalystforotherMicronesianandSmallIslandStates.

Target: 16%emissionreductionfromtransportby2025and27%in2030(2015RMIINDC)

Achievingthistargetrequires:

• Awholeofsectorapproach:

‒ maritime,airandlandtransport;and

‒ workstreamsfocusedondata,policy,economicanalysisandfinancingmechanisms,technology,training,research.

‒ Acoordinatedprogramofpilotprojectsacrossallaspectsofthetransportsector

• Awholeofcountryapproach:

Mustincludegovernment,industry,community,NGOs,researchandeducationproviders.

Anationalstrategythatprioritieslongtermin-countrycapacitybuildingbackstoppedbythehighestqualitytechnicalandresearchsupport.

• Adualfocus:

‒ Planandimplementlocalsolutionsthatprovideclean,affordable,reliableandappropriatelowcarbontransportforthefuture;and

‒ InfluenceinternationalpolicyandstrategiesthatpromotepolicyappropriatetoMicronesianambitionsandensurerecognitionoftheuniquenessofMicronesiantransportissues.

• Partnerships

Strongknowledgeexchangeandresearchpartnershipswithleadingregionalandinternationalpartners.

Acommitmenttoseekingthehighestavailablelevelofexcellenceinresearch

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4. MCSTStructure

MCSTwillbeestablishedasasmallresearchteamatUSP-MIcampusthatcoordinatesandcollaborateswithallrelevantstakeholders.

5. MCSTWorkProgram

• EstablishAdvisoryCommittee.• RecruitMCSTDirectorandsetupoffice.• Confirm15-yearRMITransitionStrategy(including1st5YearsWorkPlanandbudgetandFundingStrategy).• Initiatedatamappingacrossalltransportsubsectorstoestablishcurrentandhistoricbaselines.

WORKSTREAMS1.Partnerships 2.Training&CapacityBuilding3.Mapping&Data 4.HeritageandHistory5.EconomicAnalysis 6.PolicyAnalysis7.Technology 8.Monitoring&Evaluation

• MaintaintheRMIworkprogram• EstablishAdvisoryCommitteesforFSM,Palau,KiribatiandTuvalu.• Assisteachtoprepareandimplementcountrytransitionroadmaps.

MCST ResearchPartners:e.g.USP,UCL,Tyndall,HEL,

Southampton/LR,Portsmouth,UNCTAD,UNESCAP,WFPMCSTDirector

• Administration/FinanceOfficer• ResearchFellow• ResearchAssociates(2)• PostgraduateStudents/Interns

EstablishmentPhase

Implementadditional5YearWorkPlans

Implement1st5YearWorkPlan

GovernanceBoard:MinisterofEducation(Chair)

MinisterofTransport(Co-Chair)DirectorWAM

DVC(Research)/USPCampusDirectorDirectorMCST(secretariat)

ProjectSteeringCommittees:• LCSTTProject• OkeanosProject• etc

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6. WORKSTREAM1:Partnerships

Forawholeofcountrylowcarbontransporttransitionstrategytobesuccessfulitrequiresengagementandparticipationofallstakeholders.TheobjectiveisacollaborativenationalRebbelib(navigationchart)supportedbyregionalandinternationalactors.

MCST is a hub and coordinating body for a national program that brings together government, industry and civil society supported by regional andinternationalactors.MCSTwillcontinuetobuildqualitylong-termpartnershipswithallwillingparticipantswhocanassistinachievingitsnationaltargets.

ResearchCentersofExcellence(UCL,Tyndall,Portsmouth,HELSouthampton/LR,CCCL)

UNBodies(IMO,ICAO,UNCTAD,IRENA)

Education/Training(CMI,MOE,WAM,USP-MI)

BilateralPartners(e.g.JICA,KOICA,DFAT,MFAT,USAid)

RegionalOffices(UNESCAP,UNDP,UNEP,ADB,WB)

CROPS(USP,IUCN,SPC,SPREP)

StateOwnedEnterprises(MEC,RMIPA,MISC,AMI)

GovernmentMinistries&Departments(MIMRA,EPD,MRD,EPPSO,MOTC,IMI,MOFA,CAD,OEPPC,CMAC)

Sectoral

(PNA,MSC,CPSC)

RebbelibforRMItoTransitiontoLowCarbonTransport

Community(WAM,MIMA,MICS)

PrivateSector(Land,marine,airandfuelsupplies)

RegionalNetworks

WORKSTREAMS1. Partnerships2. EducationandTraining3. MappingandData4. HeritageandHistory5. PolicyAnalysis6. EconomicAnalysis7. Technology8. Monitoring&Evaluation

MicronesianCenterforSustainable

Transport

InternationalNetworks

CountryNetworks

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7. WORKSTREAM2:EducationandTraining

Humancapitalisourgreatestresource.ThisisrecognizedinthisRebbelibbytheprioritygiventoboostingthecurrentcapacityandbuildinglong-termin-countrycapacity of future transport planners, operators and decision-makers ingovernment and industry at all levels. Wherever possible, MCST will seek tobuild on and collaborate with existing education and training initiatives bysupporting existing training providers, such as CMI, USP-MI and WAM anddovetailing with existing initiatives, such as the EU PacTEVT program for up-skillingacrosstherenewableenergytrainingsector.

Achieving a transition to a low carbon future requires more than presentingtechnological ‘fixes’. Ensuring that the sector has the appropriate skills andtraining base across the spectrum needed, ranging from: ships crews and taximechanics,fleetmanagersandportoperators,topolicywritersandinternationalnegotiators;isgoingtobecriticaltosuccess.Theresearchneededtounderpinatransition requires a strongbase across various disciplines including economicsand statistical analysis, policy development, technology and engineering,transport logistics, etc. In some cases this will require modification andadaptationofexistingcoursesandqualifications, inothercasescompletelynewskillsetsandconcepts.

Given the country’s small population base, close in-country coordinationbetween education and training providers and the Ministry of Education tomaximizesynergieswithexistingprogramsisessential.Theseinstitutionshaveastrongtrackrecordofcollaborationandpartnershipinthisregard.JointresearchandteachingprojectsandprogramswithinternationalCentersofExcellenceanduniversities isaprimarymeansofprovidingknowledge transferandup-skilling,throughprovisionofshorttermtrainingcoursesandlongertermpostgraduateandstaffexchangeprograms.

IncollaborationwithnationalandinternationalpartnersMCSTwill:

• Identify the training and education requirements for government, industryandcommunity to successfully transition toa lowcarbon transport future.Thisincludesallcurrentandprojectedfutureneedsacrossthesector.

• Coordinate with existing education and training providers to ensure thatappropriate and adequate education and training capacity is available tosupporta lowcarbontransition,andtoworkwith theseproviders tomeetidentifiedgaps in capacity, includingdeveloping linkageswith internationalsupportingpartnerstodevelopeducationandtrainingsolutions.

• Prioritize building in-country capacity of local people to own andmanagelocalsolutions.

• Ensure adequate and appropriate training and education is built into allaspectsofresearchandprojectdevelopmentbytheCenter.

PriorityActions:

1. Identifycurrentandfutureeducationandtrainingneeds.

2. Identifywhatgapsexistanddevelopeducationandtrainingprogramstomeetthese.

3. Identifyandestablishlinkageswithinternationalpartners.

4. Buildcapacityofexistingeducationandtrainingproviders.

5. IncludeconsiderationofeducationandtraininginallMCSTworkstreams.

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8. WORKSTREAM3:MappingtheTransportSector

Beforewecanbeginatransitionwemustfirst:

• understandthecurrenttransportuseandcurrentandprojectedneedthroughdatacollectionandanalysis;

• establishanin-countrynetworkofallrelevantstakeholdersandactors-“Jepilpilinkeejukaan"(accomplishmentthroughjointeffort);

• build an international partnership to support the transition throughknowledge transfer, targeted research, training and appropriateresourcing;and

• knowwhatoptionsareavailable.

Data collection and analysis is the critical first step to progress onachievingRMI’spolicytargets.Thefirststepistoknowwhatis:

• thecurrenttransportsupply,needanddemand(forallsub-sectorsandalltransportusers);

• thecurrentcarbonfootprintofeachtransportsectorandsub-sectors;and

• theprojectedchangeovertime.

Howwillwe:

• Collectthisdata?

• Storeit?

• Analyzeit?

PriorityActions:

1. Identifyexistingcurrentandhistoricaldatasets.

2. Identifywhatdatagapsexist,prepareandexecutemethodologiesandprocessestomanagegaps.

3. IdentifycurrentGISplatformsin-countrythatthisdatacanbestoredandintegratedwith.

4. Identifycurrentcapacitytostore,manageandanalysethisdata.

5. Preparetrainingprogrammetomeetgapsidentified.

6. BuildandpopulateGISandrelateddatabasetostore,manageandanalysedata.

7. ManageandupdateGISandrelateddatabaseovertime.

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Domestic

MARITIME

AIR

LAND

DomesticlandtransportLargelyrestrictedtoMajuroandKwajalein/Ebeye• Vehicletype/number• Fueltype/use• Private/commercial/government

Domesticairservices

Internationalairservices• InternationalairservicingRMI• InternationalairtransitingRMIairspace

Domesticshipping• Intra-island,inter-island,fishing,tourism,private

• Private/commercial/government• Vesseltype,age,tonnage,enginesize,fueluse

• Vesselroutesandfrequency• Cargo/Paxtypeandloadings

InternationalshippingoperatinginRMIEEZ• Freight,fishing,fishingsupport,other• Vesseltype,age,tonnage,enginesize,fueluse

• Vesselroutesandfrequency• BerthinginRMIortransitingRMIEEZ

OtherInternationalshipping• flaggedtoRMIbutoperatingoutsideRMIEEZ

EXISTINGDATACOLLECTIONINITIATIVES•ADB• SPC• INDCs,Census,Reimaanloksocio-economicsurvey• IRENA•USP

KEYACTORSRMI: e.g.USP-MI,RMIPA,FuelCompanies,MEC,EPD,

EPPSO,MOTC,CAD,OEPPC,AMI,MISCOTHER:e.g.USP,SPC,ADB,UCL,TYNDALL,UNESCAP,UNCTAD,

IRENA

InternationalEEZ

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9. WORKSTREAM4:HeritageandHistoryTransportisMicronesia’sgreatestheritagelegacy.SincetheircolonizationofthePacific over millennia, Micronesians excelled in developing and perfectingsustainableand cuttingedge transport solutions tailored to theiruniqueoceanenvironmentandfromahighlylimitedresourcebase.Theoceanwasabridge,aconduittoconnectivity,notabarrierasitissooftenviewedtoday.Micronesiansdisplayed excellence in technological innovation and operational practice,developing vessel designs, effective andefficientnavigation systems,operationpractices and knowledge transfer and training thatwere themost advanced inthe world. Given that this evolution occurred in a development environmentthatwasdevoidofmetalsandonlyamarginalrangeofmaterials,theadvancesachieved were all the more remarkable. Transport solutions were largelysustainableandcertainlylowcarbon,exploitingextensiveknowledgeofavailablerenewableenergysources. Sea transportwasoneof thehighestprioritiesandgreatestpre-occupationsoftraditionalleadersandsocieties.

Much traditionalmaritimeknowledgehasbeen lost throughout thePacificandMicronesia is one of the last reservoirs. In RMI, Waan Aelon in Majel hassuccessfully led a strong program targeted at retention of such knowledge,celebrationofitssuccessandrevitalizationofthisheritageicon.Therearemanylessonstobelearntfromthepastasweseekinnovativesolutionsforthefutureand the role of heritage and culture are central to this work program.Valorizationof thisheritageprowess is a keyvector forassisting inaparadigm

shift to low carbon and renewable energy use among transport users andoperatorsalike.WAM’sheritageprogramanditsstrongtrackrecordwithyouthtrainingandeducationprovidesstrongpotential toexpandtocommercial trialsforlocallyproducedintraandinter-atolltransportsolutions.WAM’smottoisWaKukWaJimor–CanoesBringPeopleTogether.

It is also essential that RMI’s more recent transport history is recorded andunderstood.Thereislittlewrittenrecordbutampleoralknowledgeofthepasthalf century of RMI shipping and air services. This includes periodswhen thelocalshippingfleetwasoftensmallscale, locallyownedandoperatedsailassistvessels. Such records need to be recorded for prosperity and distilled forrelevant lessons applicable to developing new low carbon solutions andpathways.

PriorityActions:

1. Extension of existing WAM program on traditionalvoyagingconstructionandnavigation.

2. OralhistorycollectionofRMIshippingoverthepast100years(withfocusonthecopratrade).

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10. WORKSTREAM5:PolicyReviewandDevelopment

ThisworkstreamwillprovidepolicysupporttoRMIandMicronesiangovernments,industryandcivilsocietythroughhighqualityrelevantanalysis,developmentandmonitoringoftransportrelatedpolicyfromdomestictointernationallevels.

Inadequate policy infrastructure has been identified in all research as amajorbarriertotransitiontolowcarbontransportfutures.

RMI has led the Pacific in setting policy for transport fuel and carbonreduction though the Majuro Declaration and now its INDC. RMI hasendorsed a series of relevant high-level instruments such as theS.A.M.O.A.Pathway,thePIDFSuvaDeclarationandthePSISPortMoresbyDeclaration on Climate Change. RMI’s unique position as the world’sthird largest independent shipping registry gives it a unique role at theinternational level in regard to influencing global policy on transportemissions.

At the domestic level, any transition to low carbon or blue/greeneconomiesrequiresaparadigmshiftinhowweviewandplanenergyuse.It must include a far greater integration of transport in future energypolicy, planning and analysis. The recent IRENA RRA for RMI hasrecommended a review of the 2009 RMI Energy Plan and this wouldappeartheidealopportunitytoreviewtransport’sroleandfuturepolicyneeds.

Policy development to support a transition to low carbon transport isessentialtoconstructinganenablingenvironment,bothdomesticallyandforinternationaldevelopmentpartnersupport.ForPacificstatessuchas

RMIwithsmallpopulationsandenormousterritoriestoregulate,monitorand enforce, the risk of over burdening in-country capacity is high andlikelytoincreasewitheverincreasinginternationalregulation.Progressininternational climate related policywill only increase thisworkload andwilllikelyrequireeverincreasingexpertisespecialisation.

ThePolicyworkstreamwilldevelopshort-termtrainingcoursesandlong-termresearchprojectsinpartnershipwithleadinginternationalresearchcentres.Postgraduateexchange isacriticalcomponent forbuilding longtermin-countrycapacityacrossthepolicyspectrum.

PriorityActions:1. AttheUNFCCC/IMO/ICAOPolicyinterface:a. ProvidepolicyanalysisandadvicesupporttoRMIandotherPacific

UNFCCC and IMO/ICAO negotiators on relevant internationalinstrumentsandprocesses.

b. Provide training for current and future countrynegotiators in thissector.

2. AnalysisandsupporttoRMIgovernmentandindustryto:a. Ensure an enabling policy environment for low carbon transition

throughintegrationandreviewofexistingtransportpolicy.b. Better integratetransportpolicywithothernationalenergysector

anddevelopmentpolicy.c. Provideanenablingpolicyfortrainingandeducationofcurrentand

futuretransportsectoractorsincludinggovernmentandindustry.

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11. WORKSTREAM6:EconomicAnalysisThe interface between transport and trade cannot be overstated.Transport cost and availability is linked to all aspects of social andeconomic development. Access to adequate and appropriate financinghasalwaysbeenalargebarriertoestablishingandmaintainingtransportconnectivity.Evenintimesofcheapandplentifulsuppliesoffossilfuels,most transport services are at best marginal commercial ventures andoften economically unviable. In many instances, governments andcommunitiesendupsubsidizingtransportservicesdirectlyorindirectlyinordertomaintainconnectivityforsocial,politicalandeconomicrationale.

TherearelargegapsinourcurrentunderstandingoftheroleoftransportinPSIS’economies.WhilePPPsareheraldedaskeytoinitiatingchangeinthetransportsector,theyarepoorlycharacterizedandunderstoodintheunique operating context of PSIS such as RMI. Ensuring potentialsolutionsareaffordableandappropriaterequiresarobustunderstandingof the role of transport in the island economic and development nexusandanalysisofthecostsandbenefitsoftransition.Financingconstraintsareamajorbarriertolowcarbontransporttransition,particularlyforPSISwithminuteandnarroweconomies,inward/outwardloadingimbalancesandhighriskoperatingenvironments.Lowcarbontechnologieswillonlygain full uptake when backed by sound economic assessment.Governments, communities and the private sector will not adopt newtechnologies and operational measures until they are demonstrated todelivereconomicbenefit.

Atransitiontolowcarbontransportmustbesituatedwithinaneconomicparadigm shift more generally. Leaders have identified blue greeneconomies as the preferred development option. This providesopportunities for transport solutions that are cleaner, more affordableandappropriate. Maximizingbenefitsof lowcarbontransporttransitionrequiresexcellenteconomicmodelingandanalysis.Financialinstrumentsusedbygovernments to incentivizesuch transitionarecriticalandneedtobebackedbyqualityeconomicadvice.

MCST will work with leading researchers to provide quality economicanalysis and consideration of financing mechanisms and market basedmeasures/instruments for RMI planners and decisions makers ingovernment,civilsocietyand industry. Thiswill includetrainingcoursesfor current planners, manager and decision makers. Postgraduateexchangeprogramswillbuildlong-termin-countrycapacity.

PriorityActions:1. Low carbon transport’s role in revitalisation of the copra trade for

Micronesia.2. CBAanalysisoflowcarbontransporttransition(comparativeanalysis

withFijiandTuvalu).3. MACCfor2outerislandsandMajurocasestudyanalysis.4. IRRandMACCofMISCconversiontolowcarbontechnologies(overa

fullfleetreplacementcycleandincludingretrofitandnewbuild).5. Issuesandoptions foruseofMBMsandMBIs. Should transition to

lowcarbontransportbepublicand/orprivatesectordriven?6. Economicanalysisofhybridvehiclepotential.7. Economicinstrumentanalysisandcapacitybuilding.

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12. WORKSTREAM7:Technology

Low carbon transport technology is a greenfield industry, especially inSIDS,butwithawiderangeofavailableorprovenoptions.Inadditiontotechnological options, operational measures show strong potential forefficienciesinthetransportsector.

Air, land andmarine sectors facedifferent technological challenges andthere is no ‘one size fits all solution’. Transport infrastructure is aprominent feature and land use competitor, often highly vulnerable toextremeweatherandseaevents.Solutionsneedtobeappropriatetothephysicalandhumanoperatingenvironmentsandeachpotentialsolutionneeds to be evaluated through this lens. Most developmentinternationally is not targeted at an islandmarket. For example, supercapacitor powered ferries are unlikely to have future benefit in RMIunlessaparalleltechnology(e.g.OTEC)makestheelectricityavailable.

RMIlacksanylargescaleorhightechdevelopmentcapacityandisrelianton importationof technologies for landandair. R&Dpartnershipswithleading centres are required. For shipping-related renewable energytechnologies,RMIoffersanidealtestinggroundfortechnologiesaimedatthesmallscaleneedsofSIDSandhas its richseafaringheritagetodrawon. Training and capacity building to ensure all new technologies areserviceabletothegreatestextentlocallyisessential.

Land

Alllandtransportisdomesticandsmallscale,mostlywheeleddieselandpetrol vehicles with the majority being small cars concentrated on 2atolls. Thereare75kmofpavedroads. Hybridsarea logical firststep.Electric vehicle and biofuel options also have potential but requireeconomicandtechnologicalvalidation.

Maritime

Increasing numbers of designs for retrofit and new builds, several tocommercial deployment or proof of concept stage, are available acrossvesselandoperationalprofilesfromlagoontointernationalapplications.RE options include alternative fuel (including biofuels and gases); windand solar in various deployments and combinations; energy efficientpropellers, hull coatings, andwaste heat recovery. Technology optionsincludeWIGs, Flettner Rotors, SuctionWings, proa and othermulti-hulldesignsandelectricmotors andancillary systems,but theseall need tobe assessed against an island country operating scenario. Waste heatrecovery, propeller upgrades, better hull coatings etc. and operationalefficiencymeasuresareavailabletotheexistingfleetfromvillagetointer-regionaltradingvessels,fishingandtourism.

Air

Fewer options are available although WIGs offer one immediatesubstituteforsomedomesticairtravelservices.Longerrouteswillhaveto follow international technology advances. Lighter than Air is alsopossibleinthemediumfuture.

PriorityProjects

Thefollowingprojectsaredesignedtotrialandtest‘proofofconcept’ofdifferingtechnologicalsolutionsforkeyfeaturesofthetransportsector:

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1. IntraandInter-IslandSailingMulti-Hulls

Historically,Marshallesedevelopedfast,versatilemulti-hull sailing vessels for local sea transport within and between itsscatteredatollarchipelagoes.UsingthebasebuiltbyWAMoverthepasttwo decades, this projectwill develop and trail designs for 2 classes oflocally-built multi-hull sailing vessels for intra-lagoon and inter-atolltransportofpassengersandcargo.

2. WinginGround‘Wingships’

Workingwith industry leaders fromKorea, thisprojectwillundertakeafullfeasibilitystudyandfieldtrialsof‘Wingships’capableofcarrying50passengersor10tonofcargoonroutesupto500kmasanalternative tosmallaircraftandhigh-speedcraft. Thisevaluationphasewith includefullconsiderationoftraining, infrastructure,operationsandmaintenance requirements necessary to support uptake of thistechnologyinaMicronesianoperatingenvironment.

3. MISC15-YearFleetEfficiencyStrategy

The Marshall Islands Shipping Corporation operates afleetof5vesselsprovidinggovernmentservicesthroughoutthecountry.For most outer island communities this is their main source ofconnectivity. It is essential for Government service delivery, disasterresponse in particular. Vessels include conventional ships and landingcraftagedfrom3to30yearsold.Thisprojectwillplanhowthisfleetcanbe replacedover itsoperating life cyclewithmoreefficient, lowcarbonbasedvesselsandwhatoperationalandtechnologyretrofitsandchangescanbeeffectedwithinthecurrent fleettosubstantivelyreducefuelusebytheMISCfleetovera15-yearperiod.

4. FlettnerRotors

Flettner rotors offer strong potential for numerousapplications including new builds and retrofits of existing vessels.Working with leading German innovators through Green ShippingNiedersachsen(GSN)attheHELthisprojectwillidentifyandtrialtheuseofFlettnerrotorswithinaRMIcontext.

5. WindPoweredInterislandFreighter

Copra is an important economic commodity forMicronesian economies and was once traded using small sail-assistedshipping. This project will evaluate the best design option for a smallwindpowered islandtradertosupportrejuvenationof theouter islandscopratradewithinRMIandwithitsneighboringStates.

6. REOptionsforElectricVehicleRecharging

Hybridandall-electricvehiclesofferstrongpotentialforcuttinglandvehiclefuelusage.However,forplug-invehiclestobeofusein atoll situations, the issue of sourcing the electricity has to resolved.This project will evaluate and trial leading candidates for poweringrechargingstationsusingrenewables.

7. MarineBased/SourcedBiofuel

Biofuelshaveoftenbeencitedasapotential fossil fuelreplacementfortransport. Atollsposethedifficultyofa lack of land for source material. Coconut oil processing is onepossibility. Recent research indicates that marine biota; especiallyseaweedsandalgaemayprovideasolution.Thisprojectwillinvestigate,evaluateandtrialthesesourcesforlandandmaritimefuelreplacement.

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13. WORKSTREAM8:MonitoringandEvaluation

Thisisthefirsttimeanislandcountryisattemptinganationaltransitiontoalowcarbontransportfuture.Itisaboldexperiment.Itwillbebringtogethermultiplecountrystakeholdersfromvaryingsectorssupportedbyarangeofregionalandinternationalpartners.Thelessonslearntfromthisinitiativewillhave critical information and results for otherMicronesian and Small Island Developing States globally. It is essential that from the outset theMCSTestablishesarobustmonitoringandevaluationregimeandisregularandtransparentinitsreporting.

ConsequentlytheMCSTwill:

• Build comprehensive monitoring and evaluation frameworks into all work it undertakes and encourage our partners to do likewise. Whereresourcingallowsthiswillincludeindependentreviewofallworkundertaken.

• Establish a repository of past and future projects and related analysis and evaluation concerning low carbon transport from both Pacific andinternationalexperience.

• Establishbestpracticeinmonitoringandevaluationforthissector,includinguseofpostgraduateresearchandexchangewithleadinginternationalinstitutions tomonitorandevaluate initiativesunder thisRebbelib. Evaluationof costsandbenefitswilluseaquadruplebottom lineapproach(economic,environmental,culturalandsocial).

• Publishpeer-reviewedresultsofallprojectsundertakenunderthisRebbelib.

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14. Energy

RMI’s2008NationalEnergyPolicyfocuseson:• Petroleumandliquidfuels• Electricpower• Transportandtransportenergyuse• Energyefficiency• Renewableenergy

NationalEnergyPolicyTargets:• 100%Urbanand95%ruralhouseholdelectrificationby2015• 20%ofelectricalenergygeneratedintheRMIfromrenewablesbyend

of2020• 20%Reductioninimportedpetroleumusefortransportby2020• MEC 20% supply side energy loss reduction by 2015 compared to

2009,consistentwithsoundtechnicalandfinancialcriteria• Measurableandsubstantialimprovementofenergyefficiencyby2020

inatleast50%ofhouseholdsandbusinessesand75%ofgovernmentbuildings

• Mandate for locally produced biofuel in diesel powered governmentvehiclesby2015

Progressmadetowardreachingrenewableenergytargets:• By 2015, 100% of households wanting electrical service will be

connectedtoeitheragridorastand-aloneSHS.• Thetargetforgenerating20%ofelectricalenergyfromrenewablesis

likelytobereachedby2020 ifplannedsolarandbiofueladditionstogridgenerationareputinplace.

• Programsfor increasedbiofueluse intransportand improvements intransportenergyefficiencyhavenotyetbegun.

• Progress in residential and government energy efficiency has beenslow.

ENERGY• 90%ofRMI’sprimaryenergysupplycomesfrompetroleum• Biomassusedforcookingaccountsfornearlyalltherest• Solarelectricitygenerationmadeuplessthan1%in2014• Useofbiofuelfromcoconutoilisminute• NorthernMarshallIslandshavethebestwindresourceinPacificwith

limitedinfluenceoftropicalstormsbutwindisseasonal

COCONUTOILASABIOFUEL• Coconutoilasabiofuelisasignificantrenewableenergyresource• Ittakesaround6,000coconutstoproduceatonneofcopra• Withaproductionratioofabout380litersofoil/tonneofcopra,

5,555tonnesofcopracanbeconvertedtoroughly2.1megalitersofcoconutoil

• Coconutoilandcopraexportpriceshavebeenunstablewhichmakeslocalavailabilityandpricingunstable

• Forcoconutoiltobeaviablebiofuelitspricemustbestablesocustomerscanpredictfuturecostsandmustbeconsistentlylessthanpriceofdiesel-theseconditionshaveyettobemet

IntendedNationalDeterminedContributionsTargets• ReduceGHGemissionsto32%below2010levelsby2025• ReduceGHGemissionsto45%below2010levelsby2030

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CLIMATE

• Moistandtropical-wetseasonMay-Nov

• Annualaveragetemperature27°C,typically30°Cmaximumand25°Cminimum

• Relativehumiditytypically76%-83%

• Rainfall1,000-1,750mminthenorthand3,000-4,300mminthesouth

• Tropicalcyclonesanddroughtsareinfrequent

POPULATION(2013)

• 54,200inhabitants,74%onMajuro&Kwajalein

• EbeyeprobablymostdenselypopulatedislandinthePacific:3,711people/km2

• Emigrationresultsinlowannualgrowthrate1.72%(2014)

ECONOMY&TRADE

• GDPUS$173.7m,percapitaGDPUS$3,158(2013)-grantsaverage60%ofGDP&overseasremittancesaresignificant

• Mostoftheouterislandaresubsistenceeconomies,GovernmentislargestemployeronMajuro,incomefromKwajaleinUSmilitarybasecompletelysupportsEbeye

• Bunker(importeddieselfuel)resoldtoforeignfishingfleetsprovidessomeexportincome• Copraisanincomesourceforouterislands-averageannualproductioninlast5years5,555tonnes/year

IMPORTEDFOSSILFUELS

• Gasoline,dieselfuel,dualpurposekerosene(aviationturbine&householdkerosene)&LPG

• Gasoline&aviationfuelimportedbyMobil• MECimport&distributeautomotivedieseloil&LPG(180,719kgsofLPGin2013)

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15. AcronymsandAbbreviations

ADB AsianDevelopmentBankAMI AirMarshallIslandsCAD CivilAviationDirectorateCCCL CenterforClimateChangeLaw,ColumbiaLawSchoolCMAC CoastalManagementAdvisoryCouncilCMI CollegeoftheMarshallIslandsCPSC CentralPacificShippingCommissionDFAT AustralianDepartmentofForeignAffairsandTradeEPD EnergyPlanningDepartmentEPPSO EconomicPolicy,PlanningandStatisticsOfficeHEL HochschuleEmdenLeerICAO InternationalCivilAviationOrganisationIMI InvestmentMarshallIslandsIMO InternationalMaritimeOrganisationIRENA InternationalRenewableEnergyAgencyIUCN InternationalUnionforConservationofNatureJICA JapanInternationalCooperationAgencyKOICA KoreanInternationalCooperationAgencyLR LloydsRegisterMCST MicronesianCenterforSustainableTransportMEC MarshallsEnergyCompanyMFAT NewZealandMinistryofForeignAffairsandTradeMICS MarshallIslandsConservationSocietyMIMA MarshallIslandsMayorsAssociationMIMRA MarshallIslandsMarineResourcesAuthority

MISC MarshallIslandsShippingCorporationMOFA MinistryofForeignAffairsMOE MinistryofEducationMOTC MinistryofTransportandCommunicationsMRD MinistryofResourcesandDevelopmentOEPPC OfficeofEnvironmentalPlanningandPolicyCoordinationPNA PartiestotheNauruAgreementPortsmouth BusinessSchool,PortsmouthUniversityPSIS PacificSmallerIslandStatesRMIPA RepublicofMarshallIslandsPortsAuthoritySouthampton UniversityofSouthamptonSPC SecretariatofthePacificCommunitySPREP SouthPacificRegionalEnvironmentProgramTyndall TyndallCentreforClimateChangeResearchUCL EnergyInstitute,UniversityCollegeLondonUNCTAD UNConferenceonTradeandDevelopmentUNDP UNDevelopmentProgramUNEP UNEnvironmentProgramUNESCAP UN Economic and Social Commission for Asia and the

PacificUSAid UnitedStatesAgencyforInternationalDevelopmentUSP UniversityoftheSouthPacificUSP-MI USPMarshallIslandsCampusWAM WaanAeloninMajelWB WorldBank

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Producedby: SustainableSeaTransportResearchProgramme

PacificCentreforEnvironmentandSustainableDevelopment

TheUniversityoftheSouthPacific

September2015