A Report from Brussels, March 2008

1. A Report from Brussels, March 2008

2. A report from Brussels • A brief look at the broader political scene • 3rd Maritime Safety Package • Air Pollution and MARPOL Annex VI • Greenhouse Gas Emissions • Ship Source Pollution and Criminalisation • “Straws in the wind”?

3. A brief look at the broader political scene • Slovenian presidency followed by France • 2009 a year of change • Lisbon Treaty starts to kick-in • Parliament elections • New Commission to be appointed • An integrated maritime policy • The 2007 – 2009 action plan • DG Fish becomes DG MARE • European Maritime Day • “Environment, environment, environment”

4. The EU ”triangle of power” Commission (Executive) Commission ECJ EMSA European Parliament (Direct election) Council (Member States)

5. 3. Maritime Safety Package • Revised & upgraded EU Port State Control • Common criteria for Accident investigation • Revised control of EU Recognised Organisations • Revised EU Vessel Traffic Management (VTMS) • Passenger carriers liability (incorporating Athens Convention in EU law) • Civil Liability and Certificates of Financial Guarantees • EU Flag state criteria and control

6. Prepares Initiative European Parliament Council Formal Proposal Commission Opinion Political Agreement&Common Position 2nd Opinion 2nd CommonPosition Conciliation Adoption Rejects EU “Co-decision”procedure Pre Decision 1st Reading 2nd Reading

7. A “package” or not a “package” – That’s the question! • 3.MSP was presented by the Commission as a “package” for tactical reasons • During First reading EP has taken the same view as the Commission, the Council not • As a consequence all seven have passed EP First Reading, only five have reached Council Common position • For the Second reading the Council might be expected to effectively force through a split • A deal might be in the making • The two remaining issues for discussion at 7 April Transport minister meeting. “Soft law” as a result? • Agreed five to be sent to the EP for second reading before the summer or early in autumn? Council Commission

8. Air Pollution and MARPOL Annex VI • SOx • EU • Hierarchy of laws to secure air quality in Europe; “CAFE” & “National Emissions Ceilings” • Sulphur Fuel Directive (1999/2005) soon to be revised again • Pressure on IMO MARPOL Annex VI revision • NOx • EMSA and GL - study published Feb 08 and passed on to the IMO • No particular EU measures to be expected

9. The EU and Greenhouse Gas Emissions • Political pressure is very strong and mounting • EU Council Climate goals 2007 + Bali • Commission “Climate and energy package” January 2008 • EP study on ETS and inclusion of new (including shipping) sectors • Maritime - Action Plan (Adopted by EU Heads of States Dec 2007) • Evaluate options for legislation • Promote use of shore-side electricity by ships at berth • ETS? • So far, revision without shipping • But inclusion of shipping remains one out of several possible options • Studies/Call for Tender out this week • Public consultation on emissions proposals late 08/early 09 • If no “tangible” IMO outcome by mid 09 the EU will proceed with legislation “immediately” to be ready for Copenhagen 2009

10. Ship Source Pollution and Criminalisation • Revision proposal for SSP Directive published on 11 March 08 • Co-decision begins with 1st reading in the EP soon • What will be considered an offence under SSP? • Ship-source discharges of polluting substances • Criminal charges in Member States based on “intent”, “recklessness” or “serious negligence” • What is the punishment? • 23 October 2007 the ECJ ruled in case C-440/05 that the Framework Decision outlining the range of punishments was annulled • As a consequence the Member States are no required to introduce "effective, dissuasive and proportionate" criminal sanctions against offenders at national level • Member States are required to make sure that the penalties imposed on natural persons are of a criminal nature.

11. Ship Source Pollution and Criminalisation (cont.) • The SSP in context - A “complement” to the draft horisontal Directive (2007) on the protection of the environment through criminal law (still in co-decision, but process might be speeded up) - As soon as in force the Commission will be able to start infringement proceedings against Member States that fail to implement the new directive - Under Lisbon Treaty there is a possibility for criminal sanctions to be harmonised at EU level which may lead to future revisions • Implementation in Member States 6 months after adoption • Final ECJ verdict on INTERTANKO case still pending

12. Some “straws in the wind” • The power balance within and between the EU institutions are shifting

13. The EU ”triangle of power” Commission (Executive) Commission ECJ EMSA European Parliament (Direct election) Council (Member States)

14. Some “straws in the wind” • The power balance within and between the EU institutions are shifting. • Stronger EP • Dilution of “maritime” in the Council • Strengthening of the Commission’s horisontal and environmental outlook to the detriment of DG TREN’s more sector approach • More mature regulatory scene also means more frequent appeals to the ECJ for clarifications - by all parties • Legal “clarifications” gradually opens-up new Pandora's boxes; • The French Erika verdict • The recent ECJ Advocate general suggested definition of “waste” • Future application of criminal charges • Outcome of INTERTANKO Case still pending

15. Some “straws in the wind” (2) • Reoccurring attacks on the limitation rights • The emergence of China (and others) as world powers might impact on EU “Maritime” behavior. More international - or more inward looking? • Increasing EU influence on the IMO • Coordination of EU positions at the IMO • Regularised contacts between the IMO and EU at high level • EU becomes a signatory to IMO Conventions? • What will be the impact on all the above trends of a dramatic down turn in world economy?

16. Conclusions • The world is becoming more complex – also the EU scene. As shipping lobbyists we need to take this into account • Increasingly INTERTANKO’s policies in one region or body will have to be coordinated with that of other regions. “Think global – act local?” • The cooperation with, and “use of”, Round Table and Tripartite should be strengthened • Safeguarding fundamental international rules and institutions more important than ever but this can best be achieved in cooperation with players such as the EU, the US and others • When dealing with the EU it is essential to understand and make use of the fact that this is not a monolithic structure. There are some strong underlying forces driving the EU forward (ref the EU Treaties) but this does not absence of internal strife. Within the main bodies and between them. There is more scope for maritime to play on them all