Tim Wilkins Environmental Manager Regional Manager: Monaco, Italy, Greece, Cyprus, Croatia. Israel and Turkey

1. The International Association of Independent Tanker Owners The Propeller Club Monaco 24th February 2005 Tim Wilkins Environmental Manager Regional Manager: Monaco, Italy, Greece, Cyprus, Croatia. Israel and Turkey

2. 1. Couple of minutes on INTERTANKO2. Main Environmental Challenges2.1 Air Emissions - Annex VI - Europe2.2 Invasive Species in Ballast Water 2.3 Ship Recycling – An issue for the future?3. Some thoughts on future issues

3. 1. INTERTANKO Representing responsible oil and chemical tanker owners worldwide Promoting Safer Ships, Cleaner Seas, Free Competition and Effective Regulation Strict membership criteria based on quality and performance (Class, P&I, PSC)

4. 1. INTERTANKO 230 (+/-) Members 2,200 (+/-) tankers 165 million dwt Average age: 11.3 years 270 (+/-) Associate Members 25 Staff / 8 Consultants IMO NGO status EU representative office Partnership agreement with USCG London Oslo Washington Singapore

5. 1. INTERTANKO • 14 Committees - 4 Regional Panels • Safety & Environment • Technical – incldg. Bunkers, IT • Chemicals, Short Sea, Offshore • Insurance & Legal, Documentary • Vetting, WorldScale • Communications and Public Relations

6. 2.1 Air Emissions – Annex VI • Enters into Force 19th May 2005 • International Air Pollution Prevention Certificate (IAPP) • - Existing Ships: IAPP on 1st dry docking after 19/5/05 • - New Ships: Keel laid after 19/5/05, IAPP on delivery • - Surveys: Renewal, intermediate and annual • Basic Coverage: • - SOx – Sulphur in fuel • - NOx • - Ozone depleting substances (deliberate release) • - VOC – Vapour emission control systems • - Incinerators • - Fuel oil quality

7. 2.1 Air Emissions – Annex VI Regulation 12 - Ozone depleting substances - Halons and CFCs Regulation 13 – NOx - Large diesel engines (>130kW) ships constructed after 1/1/2000 - But not smaller diesel engines: e.g. emergency diesels, lifeboats and boilers Regulation 15 - VOC - Vapour emission control systems, tankers only and in ports that have implemented and notified IMO Regulation 16 - Incinerators - Type approval, applicable to incinerators installed after 1/1/2000 - Prohibits incineration of certain cargo residues (Annex I, II and III), Annex IV garbage with heavy metals, PVC, PCBs

8. 2.1 Air Emissions – Annex VI Regulation 14 - Sulphur in marine fuel Global cap : 4.5% (current avg. 2.7%) SOx Emission Control Areas (SECAs) : 1.5% 1. Baltic Sea – 19th May 2006 2. North Sea – 2007 Conformity with Regulation 14, see Regulation 18 of course…

9. 2.1 Air Emissions Regulation 18 – Fuel oil quality (ISO8217) Supplier responsibility - action to be taken against supplier if fuel is off-spec Licensing of suppliers with list maintained by IMO Bunker Delivery Note (BDN) & Representative Sample • Sample • Each BDN to be acc. by sample – cross reference BDN with sample reference (label) • Sealed and signed by supplier & master or officer in charge of bunker operation • Maintained with ship for no less than 12 months • Sampled in accordance with MEPC 96(47) • BDN • Sulphur content & fuel density • Declaration from supplier that fuel delivered complies with Regulations 14 and 18 • File onboard for 3 years

10. 2.1 Air Emissions – Annex VI Regulation 18 – Fuel oil quality (ISO8217) A Guide to Bunkering of Ships for the purposes of Annex VI to MARPOL – INTERTANKO 2004 - Include Annex VI as a clause with details in bunker purchase contract and charter parties - Update bunkering procedures (ISM key shipboard ops.) - Training and information to personnel - Ensure adequate storage facility for samples - Concise and thorough bunker quantity measurements, calculations and records; this will soon be subject to PSC scrutiny

11. 2.1 Air Emissions - Europe • European Directive 1999/32 • 1.5% Sulphur limit for fuels used in Baltic Area as of 19th May 2006 and North Sea Area as of 2007 • 1.5% Sulphur limit for fuels used by passenger vessels on regular service between EU ports 19th May 2006 • 0.2% Sulphur limit for fuel used by ships at berth in EU ports (Boilers for pump room tankers while in port maybe excluded until 2010) • Tightened to 0.1% 1st January 2010 • Previous 0.2% requirements since 2000 now implemented • Ships leaving EU ports up to the 12nm zone – gas oil and diesel

12. 2.1 Air Emissions - Europe Low Sulphur Fuel Oil (LSFO) Compatibility Viscosity, lubricity, ignition/combustion Availability Low sulphur crudes Residue desulpherisation Blending Storage Tanks, piping, treatment, service, changeover… Exhaust Gas Scrubbers…end of pipe solution?

13. 2.2 Invasive Species in Ballast Water International Convention for the Control and Management of Ships’ Ballast Water and Sediment Friday 13 February 2004 Largest impact on shipping since MARPOL? Application (2009 EIF) For ships with a ballast water capacity of over 5000 cubic metres: 1) Vessels built before 2012 D-1 until 2016 then D-2 2) Vessels built after 2012 D-2 D-1: Ballast water exchange D-2: Ballast water performance standard National and regional legislation already entering into force – USA: 27 Sep. 2004

14. 2.2 Invasive Species in Ballast Water Implementation – Guidelines:

15. 2.2 Invasive Species in Ballast Water Implementation – Convention: International Ballast Water Management Certificate (IBWM) Ballast Water Exchange – Regulation D-1 and B-4: 2016 phase-out Regulation D-5 - Technical review of treatment options – MEPC 53, July ‘05 New technology – old problems? - Inspection (Article 9) & Survey (Regulation E-1) - Operability & Functionality (Reality!) - Undue delay to ships Active Substances (Regulation A-1) Ballast Water Mgt. Plan & Record Book (Regulations B-1 and B-2) Exemptions – Shuttle tankers, risk assessment Additional Measures – Regional/National Additions (Section C)

16. 2.2 Invasive Species in Ballast Water Newbuilding designs must take into account potential installation of ballast treatment systems in the future from newbuildings to end of life vessels…

17. 2.3 Ship Recycling – An issue for the future? What makes this an issue? A major issue for environmental and human health reasons • Human Health • Asbestos • Fire and Explosions • Environment • Soil Contamination • Marine Pollution

18. 2.3 Ship Recycling – An issue for the future? • Industry Code of Practice on Ship Recycling • Industry Working Party on Ship Recycling, 1998 • Instigated first guidance on Hazardous Materials Inventory • Use of standard recycling contract • Criteria for declaring a ship ‘Ready for Recycling’ • Certification of yards in terms of worker safety and environmental management • Minimise hazardous materials on board during operation and on new buildings • Gas-free all tanks (except those required for final voyage) • Introduced cradle-to-grave analogy and Green Passport concept

19. 2.3 Ship Recycling – An issue for the future? • International / UN Reaction • Basel Conventionon the Control of Transboundary Movements of Hazardous Wastes and their Disposal • Is it applicable to the ship recycling issue? • When is a ship to be considered hazardous waste? • What are the consequences? Control the ‘export’ of ships.

20. 2.3 Ship Recycling – An issue for the future? When is a ship to be considered hazardous waste? “Hazardous Waste” must be Liable to spontaneous combustion When in contact with water, emit flammable gases Liberate toxic gases in contact with air or water Liable to leach hazardous substances after burial Explosive Flammable Liquid Oxidizing Poisonous (Acute) Corrosive Ecotoxic Toxic (Delayed or chronic) Flammable solid Infectious Organic Peroxides A “ship” exhibits none of these characteristics so cannot be “hazardous waste”, therefore not subject to the provisions of the Basel Convention

21. 2.3 Ship Recycling – An issue for the future? • International / UN Reaction • Basel Conventionon the Control of Transboundary Movements of Hazardous Wastes and their Disposal • Is it applicable to the ship recycling issue? • When is a ship to be considered hazardous waste? • What are the consequences? Control the ‘export’ of ships. • International Labour Organisation (ILO), Guidelines on Safety and Health in Shipbreaking. • Focuses primarily on occupational risks on land-based workers

22. 2.3 Ship Recycling – An issue for the future? • International / UN Reaction • Basel Conventionon the Control of Transboundary Movements of Hazardous Wastes and their Disposal • Is it applicable to the ship recycling issue? • When is a ship to be considered hazardous waste? • What are the consequences? Control the ‘export’ of ships. • International Labour Organisation (ILO), Guidelines on Safety and Health in Shipbreaking. • Focuses primarily on occupational risks on land-based workers • International Maritime Organization’s (IMO) Ship Recycling Guidelines

23. 2.3 Ship Recycling – An issue for the future? • IMO Guidelines on Ship Recycling - Resolution A.962(23) • Available since March 2004, adopted December 2003 • Based on Industry Code of Practice • Role of Stakeholders Identified • Flag State; Ready for Recycling Criteria • Port State; PSC procedures • Recycling State; Control of recycling facilities • Shipping Industry; Code of Practice • Recycling Industry; ILO Guidelines

24. 2.3 Ship Recycling – An issue for the future? • The initial list of elements of the IMO Guidelines for which a mandatory scheme may be suitable • 1. Recycling Facilities • Licensed recycling facilities • Ship owners to use only licensed approved facilities • Ship owners to remove material the facility cannot • 2. Mandatory reporting scheme • 3. Ship Recycling Plan • Prepared by the recycling facility • 4. Ship Recycling Contract • Ensuring key elements of the Guidelines are included

25. 2.3 Ship Recycling – An issue for the future? • The initial list of elements of the IMO Guidelines for which a mandatory scheme may be suitable • 5. Potentially Hazardous Materials • Restrict use of hazardous substances on new ships • States to minimize hazardous substances in existing ships • Hazardous materials inventory on board when ship sent to recycling facility • Ship owners to mark potentially hazardous materials • 6. Green Passport • Ship builders to provide Green Passport to owner • Ship owners to maintain validity of Green Passport • Ship owner to deliver Green Passport to recycling facility • 7. Gas free for Hot Work Certificate • Ship owner and facility to arrange for certification

26. 2.3 Ship Recycling – An issue for the future? • Shipping Industry Proactivity • Follow Guidelines as closely as practicable (HMI, Green Passport, SRP) • Identify areas of concern • Notify Associations who can in turn notify IMO • Pool resources and find solutions (HMI, Green Passport, Gas-free) • Continue to highlight role of other stakeholders • Share information on recycling facilities (market to force changes?) • Green Recycling Facilities? • Green recycling is ideally defined as scrapping performed in full accordance with the developed recycling guidelines.

27. Industry Code of Practice (1999) ILO & Basel Guidelines • Shipping Industry Feedback • Workable • Practical • Objectives Met IMO Guidelines (2003) Consideration of Mandatory Elements • Market Forces • Shipping Industry • Green Recycling Ship Recycling becomes a truly GREEN industry in concept and practice

28. 3. Some thoughts for the future • Environment will continue to take centre stage • Kyoto, Biodiversity, Sustainability • Mandatory requirements vs. Self regulation • Political tug-of-war: • National vs. Regional vs. International • Political Will vs. Technical/Operational Reality • A responsible, sustainable and respected industry able to influence its own destiny

29. thank you for your attention… www.intertanko.com

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