INTERTANKO Latin American Panel September 13-14, 2010 ENVIRONMENT COMMITTEE UPDATE

1. INTERTANKOLatin American PanelSeptember 13-14, 2010ENVIRONMENT COMMITTEE UPDATE Image Courtesy of NORDEN AS

2. Policy Issues • Ballast Water Management • Port Reception Facilities • Garbage Management • Ship Recycling • Greenhouse Gas Emissions • Anti-fouling • Biofouling Reporting Items • Ship Strikes with Cetaceans • Marine Noise Pollution • Liaison with Environmental Organisations

3. Method of work - using Objectives • the development of Objectives would allow the Committee to focus on each of its agenda items and consider how the Committee would work on each item to meet the objective. This would allow the Committee to remain focused and ensure that the agenda was relevant to the Committee’s aims. • the Objectives are currently in draft but will be tabled for the Council’s consideration in October

4. BALLAST WATER International Convention for the Control and Management of Ship’s Ballast Water adopted in 2004 - Entry in Force – 30 countries representing 35% of the world’s gross tonnage - Current ratifications – 25 countries representing 24.28% of world’s gross tonnage

5. BALLAST WATER TREATY REQUIREMENTS • Ballast Water Management Plan • Ballast Water Record Book • Ballast Water Management Certificate and surveys to verify compliance • Mandates ships to conduct ballast water exchange until equipment is approved to meet ballast water standard

6. BALLAST WATER BALLAST WATER STANDARD (D-2) • Less than 10 viable organism greater than 50 microns is size per cubic meter of water • Less than 10 viable organism smaller than 50 microns and greater than 10 micron is size per cubic meter of water • Human health standards for cholerae, coli and cocci

7. BALLAST WATER STATUS OF EQUIPMENT APPROVALS • Basic Approval 24 • Final Approval 12 • Type Approval Active substances 5 Non-active substances 2 • Under Development 6 (Systems using “active substances” require IMO “basic” and then “final” approval)

8. BALLAST WATER DATES 2009 - Ship constructed in 2009 with a ballast water capacity below 5000m3 must meet the D-2 standard by its 2nd Annual Survey, but not later than 31 December 2011. 2010/2011 - Ships constructed in 2010 or 2011 with a ballast water capacity below 5000m3 must meet the D-2 standard when built. 2012 -Ships constructed in or after 2012 must meet the D-2 standard. 2014 - Ships constructed before 2009 with a ballast water capacity between 1500m3 and 5000m3 must meet the D-2 standard at first drydocking after January 1, 2014. 2016 - Ships constructed in or after 2009 with a ballast water capacity of 5000m3 or above must meet the D-2 standard when built. Ships constructed before 2009 with a ballast water capacity below 1500m3 and above 5000m3) must meet the D-2 standard at first drydocking after January 1, 2016.

9. BALLAST WATER Concern over treatment systems to meet 2012 deadline • Treatment type • Generation of chemicals • Capital Cost ($USD) • Operating costs over 10-years • Other Costs: consumables, spares, maintenance • Power Consumption • Size (m3) • Weight (kg) • Pressure Drop • # installations/contracts • Tried and tested on large scale

10. BALLAST WATER • States implementing and enforcing IMO Convention, although not in force, Norway • Other States seek to go beyond IMO Convention, USA • Implementation issues arising - Ballast Water Record Book format • IMO list of Guidelines continues to be important but overlooked by operators:

11. BALLAST WATER FIVE KEY IMO GUIDELINES (out of 16) that are aimed at assisting the ship operator • Ballast water sampling • Ballast water management and the development of ballast water mangement plans • Ballast water exchange • Ballast water exchange design and construction standards • Sediment control on ships

12. BALLAST WATER Countries that have taken national action Australia Argentina Brazil Canada Chile Georgia Israel Lithuania New Zealand Panama Peru Russia Ukraine USA To see the details of their requirements, go to www.intertanko.com – Environment – Ballast Water – Ballast Water Legislation

13. BALLAST WATER • Objective: Encourage the sharing of information on ballast water treatment systems and the results of on-board test installations • Objective: Encourage the establishment of uniform industry best practice based on the principles of the IMO Convention Current work... • State of the Membership Survey • Facilitate INTERTANKO policy making in respect of the IMO Convention • Information sharing on technology under consideration by the tanker industry • Global Industry Alliance (GIA) – sharing of information

14. RECEPTION FACILITIES • Objective: Encourage and cooperate with stakeholders in improving the adequacy and availability of reception facilities at all oil and chemical ports and terminals Current work... • Proposal to adopt a Compulsory Discharge policy • Advantages: • Establishment of a level playing field • Minimise waste on board • Lower emissions as incinerator would not need to be used as frequently • Lower maintenance costs due to less use of incinerator • Fewer options for facilitation payment demands • An effective way to attain the zero pollution and clean seas objectives. • Further consideration of this requirement would need to take into account the fee mechanism and possible abuse of the scheme by port states.

15. RECEPTION FACILITIES Current work... Updates on the INTERTANKO website: • List of facilities with alleged inadequacy reports against them in the IMO GISIS (with a clear link to GISIS for further details) 2. List of facilities that members have received positive experience – promoting the good ports/facilities

16. GARBAGE MANAGEMENT • Objective: Develop industry best practices for the management of garbage Current work... • Best practice Reviewed and supported the ISO Standard on waste handling, pending final revision, Committee will recommend use by INTERTANKO members • General guidance MAPOL Annex V review and interpretations • Soot handling • Trace heavy metals

17. SHIP RECYCLING International Convention for the Safe and Environmentally Sound Recycling of Ships adopted in May 2009 to regulate: - Design, construction, operation and preparation of ships for environmentally sound recycling - Operation of recycling facilities in safe, environmentally sound manner - Appropriate enforcement of both through certification and reporting

18. SHIP RECYCLING MAJOR ELEMENTS OF TREATY (SHIP) • Control of ship’s hazardous material (prohibit or restrict its use) • Ship inventory of hazardous materials • Ship recycling plan • Preparation for ship recycling • Ship survey and certification • Reporting (Notify of intent)

19. SHIP RECYCLING MAJOR ELEMENTS (FACILITY) • Standards for facility design/operations • Document of authorization • Recycling Management Plan • Safe and environmentally sound operational procedures • Emergency preparedness/response plan • Worker safety and training • Reporting (Intent and upon completion)

20. SHIP RECYCLING ENTRY INTO FORCE CONDITIONS • 15 countries • Representing 40% of the world’s gross tonnage; AND • Combined maximum annual recycling volume during the preceding 10 years constitutes not less than 3% of the gross tonnage of these countries

21. SHIP RECYCLING Complicating Factor • Australia proposed to include provisions in treaty that allows ships to be recycled in non-party states (free trade issue) • Conference rejects proposal because it could encourage recycling states not to ratify treaty • Problem is that flag states may not ratify treaty until major recycling states do so

22. SHIP RECYCLING The key issues for ship operator... • Convention is unlikely to enter into force until 2013 at the earliest, but... • Pressure on shipping industry to move towards compliance in the transitional period • Interest from INTERTANKO members to recycle in compliance with the Hong Kong Convention • Recommendation to recycle ships in accordance with the Hong Kong Convention, where possible • Industry Working Group – “Transitional Measures – for Shipowners Selling their Ships for Recycling”

23. SHIP RECYCLING • Objective: Promote the use of ship recycling facilities which have proven health, safety and environmental protection standards • Objective: Urge recycling states to adopt the standards specified in the Hong Kong Convention and eventual ratification for early entry onto force of the legislation Current work... • Noted that there was limited scrapping within INTERTANKO membership, however, desire to gather information on ‘better’ facilities • Clearinghouse on recycling facilities striving to meet the HK Convention standards, based on information from ship owners • Watching brief over action in Europe • European Commission continue to consider how to enforce legislation in relation to ship recycling

24. GREENHOUSE GAS EMISSIONS March 2010 IMO agreed on • Mandatory (MARPOL Annex VI) Energy Efficiency Design Index (EEDI) for new ships • Guidelines for voluntary use of the ship Energy Efficiency Operations Indicator (EEOI) • Guidelines for Ship Energy Efficiency Management Plan (SEEMP) and inclusion in MARPOL Annex VI • Expert Group to assess impacts on shipping and trade of Market Based Instruments (MBIs) • Proposals: Cap and Trade / Compensation scheme / Hybrid • Note: Most propsals based on EEDI as benchmark

25. GREENHOUSE GAS EMISSIONS Ship Energy Efficiency Management Plan • Developed as a ship-specific plan by the ship owner • Part 1 – What the Plan should look like in four parts • Planning: Package of measures identified & Goal setting • Implementation: Implementation system • Monitoring: Monitoring system (tools and record keeping) • Self-evaluation & Improvement: Voluntary reporting • Part 2 – List of possible options for improving energy efficiency (use of INTERTANKO’s Guide)

26. GREENHOUSE GAS EMISSIONS INTERTANKO’s Guide for a Tanker Efficiency and Emission Management Plan • Introduction * • Establishing the Company and Ship Management Plans • Voyage Optimisation Programme • Propulsion Resistance Management Programme • Machinery Optimisation Programme • Cargo Handling Optimisation • Energy Conservation Awareness Plan • * Also introduces elements associated with the over-lap between SEEMP and OCIMF TMSA Fuel Management Appendix

27. GREENHOUSE GAS EMISSIONS • Objective: Share information on operational, technical and educational options for reducing GHGs from tankers Current work... • Assessment of the implementation of the IMO SEEMP • Gather feedback on implementation and consider providing guidance for a harmonized approach by INTERTANKO members and an update of the TEEMP.

28. ANTI-FOULING Anti-fouling Systems • Entry into force of the AFS Convention • INTERTANKO Environmental Committee • Move towards biocide-free systems • Comparison of silicon systems Antifouling Problem = Chemical Biofouling Problem = Biological Invasive species a different route for organisms other than ballast water

29. ANTI-FOULING • October 2001 – IMO Conference adopts International Convention on the Control of Harmful Anti-fouling Systems on Ships • September 2007 – With Panama ratification of treaty, entry into force conditions are met • September 17, 2008 – Anti-Fouling Treaty entered into force for all parties

30. ANTI-FOULING • Current ratifications – 40 countries representing 67.83% of world’s gross tonnage • Countries party to Anti-Fouling Treaty Latin American region – Mexico Open registries – Bahamas, Liberia, Marshall Islands, Panama Others – Australia, Japan, most all European countries, South Africa

31. ANTI-FOULING Treaty Requirements • By January 1, 2003 no ship shall apply or re-apply organotin compounds which act as biocides in anti-fouling systems • By January 1, 2008, ships shall either: 1. not bear such compounds on their hulls or external parts or surfaces; or 2. bear a coating that forms a barrier to such compounds leaching from the underlying non-compliant anti-fouling systems • Ships shall carry: 1. an International Anti-Fouling System Certificate 2. a Declaration on Anti-Fouling Systems

32. ANTI-FOULING MEPC 57 issue – should the treaty requirement dates (Jan 1, 2003 and Jan 1, 2008) be deemed to take effect on entry into force date (Sept 17, 2008) OR should there be retroactive application?? DECISION – 1. No consensus on the date on which these requirements should be applied; 2. Agreement to let each party apply provisions in accordance with its national law; and 3. Invite each party to inform IMO of its decision on implementation and enforcement of provisions NOTE: EC states that under European regulation, no ship may enter a European port with a tin-based anti-fouling system after January 1, 2008. US???

33. BIOFOULING • Biofouling • Scale of issue defined and indication of severity in relation to ballast water • 36% of species introduced into North America attributed to biofouling • 77% of species introduced into Port Phillip, Australia attributed to biofouling • Hull resistance management • Air emissions benefits • Invasive species benefits • Biofouling – going forward • IMO Guidelines • National hull management requirements – USA & Australia • Ban on hull management/cleaning !

34. BIOFOULING • Objective: Develop practical and uniform international guidelines and best practice on the management of ships’ biofouling for the prevention of invasive species Current work... • IMO Guidelines Assessment, Review and Commentary • Providing input on current IMO Guidelines due to be completed in 2011 • Guidelines to regulations... ??? • Maintain principle that ports MUST allow hull management operations in their waters

35. Reporting items • Ship strikes with cetaceans • International Issue • IMO’s Guidance to States - routing measures and speed restrictions, but initiated/regulated through IMO • Regional Laws • USA – speed restrictions and speeding fines! • Environmental Committee: Watching brief

36. Reporting items Marine noise pollution • Adverse anthropogenic marine/ocean noise impacts on cetaceans and other biota or... • Noise pollution and its effect on marine mammals • Technical Guidelines for ship-quieting technologies plus potential navigational and operational practices • Environmental Committee: Full review of the IMO work on this issue to be delivered and considered by the Committee at its next meeting

37. Reporting items • Environmental organisations • WWF International – conducting a review on the effectiveness of class green notations. The Committee has agreed to peer review this work • World Ocean Council – general support for the principle established by the WOC

38. MUCHAS GRACIAS!!