Implementing Regulation (EU) No 1257/2013 on ship recycling Genoa, 24 April 2015

1. Implementing Regulation (EU) No 1257/2013 on ship recyclingGenoa, 24 April 2015 Emilien GASC, Policy Officer Waste Management & Recycling UnitDirectorate-General Environment, European Commission

2. Presentation of the EU Ship Recycling Regulation 1) Why the EU Ship Recycling Regulation? 2) State of play 3) Requirements for recyclers 4) Procedure to be included in the EU List 5) Inventories of Hazardous Materials 6) Financial incentive mechanism?

3. 1) Why the European Ship Recycling Regulation ?

4. The shortcomings of the Basel regime

5. Transition from a circumventedregime (Basel) to a ship-specificregime (Hong Kong)… • …Whileensuringsafe and environmentallysoundrecycling. The EU rationale

6.  Restrict recycling options to a List of facilities with no geographic/nationality limitation  Add environmental requirements to effectively prevent the worst practices observed in the past decades

7. The Hong Kong Convention and the EU Regulation

8.  Only for EU flag vessels, ≥500 GT, non-navy The Scope

9. 2) State of play

10. Legislative process:Adoption by European Parliament and Council Publication in the Official Journal of the EU Entry into force: 30 December 2013 Guidelines: Facilities: draft circulated in Sep 2014 + Apr 2015 Other aspects (e.g. IHMs, PSC): EMSA currently in charge European List: Applications to the EU List: Summer/Fall 2015 Publication of the EU List: 1st half of 2016 Main date of application: The earliest of 6 months after publication of List or 31/12/2018

11. 3) What are the requirements for ship recyclers wishing to recycle EU flag ships ?

12. Basic requirements (=HKC) –Art.13 • Be authorised by the competentauthorities • Facilitydesigned and operatedsafely and in a clean manner • Have management and monitoring systems to preventhealthrisks and adverse environmentaleffects • Draw a ShipRecyclingFacility Plan • Ensuresafe and clean management and storage of HM • Transfer wasteonly to waste management facilities • Establish emergency preparedness plans, rapidaccess for emergencies • Train workers • Report on incidents

13. Additional environmental requirements compared to HKC • Control of anyleakage, in particular in intertidal zones • Handle HM, and wasteonly on impermeablefloorswith effective drainage systems • Operatefrombuilt structures • Standards for downstreamwaste management

14. "Control of leakages, intertidal zones" (art.13(1)(f)) • Regulationclearlyfocuses on prevention (article 13(1)(b)): the shiprecyclingfacilityprevents adverse effects on humanhealth and the environment) • …but for leakages, notion of "control" (article 13(1)(f): the facilitydemonstrates the control of anyleakage, in particular in intertidal zones). Control includesprevention, response to and mitigation • Control of anyleakage  no category of leakageexcluded • Intertidal zone = zone between the lowest and the highesttide mark

15. "Impermeable floors, effective drainage systems" (art.13(1)(g)(i)) • Article 13(1)(g)(i): handling of hazardousmaterials, and of wastegeneratedduring the shiprecyclingprocess, only on impermeablefloorswith effective drainage systems • Shiprecycling=waste management process. Therefore all elementsseparatedfrom the ship are eitherhazardousmaterials or wastegeneratedduring the recyclingprocess. •  Effectively, all elementsseparatedfrom the shipfallunder the scope of the article, i.e. must behandled on impermeablefloorsonly. • The interior of the ship qualifies as impermeablefloor if certain conditions are met

16. Built structures (art.13(1)(c)) • Objective: to support the otherrequirements •  Enable control of leakage, workers' safety, containment of hazardousmaterials. • Primarycutting area: pontoons, slipways, quays, ship lifts, fixed cranes/pumps, etc. • Secondarycutting, sorting and storing areas: workstations, tanks, walls, etc. • Built structures applied to health and safetyrequirements: firmlevelroadways, washingfacilities, changingrooms, etc. • No obligation to completelybuild up facility as long as otherrequirements are met.

17. Standards for downstream waste management (art.15(5)) • "With regard to the waste recovery or disposal operation concerned , environmentally sound management may only be assumed to be in place provided the ship recycling company can demonstrate that the waste management facility which receives the waste will be operated in accordance with human health and environmental protections standards that are broadly equivalent to relevant international and Union standards" • Does not mean that the DWM facility should be in full compliance with EU rules. • Means that the standards and rules followed by the DWM facility should offer a similar level of protection.

18. 4) What is the procedure to be included on the EU List ?

19. Where is the recycling facility? • Facilities located in the EU must be approved by their national competent authorities and included in the List • Facilities located outside the EU must submit their applications directly to the European Commission

20. The procedure for recyclers in 3rd countries – 1/2 Preparing the application file • 1. Facilities' ownerscontract an independentverifier (IV) to certify the facility • 2. The IV must carry out an onsitevisit • 3. The ownergathersevidence of compliance, including the certification report from the IV • 4. The facilityownersends the complete file to the European Commission

21. The procedure for recyclers in 3rd countries – 2/2 After the application • EC to review applications and establish the List • Additional inspections may be carried out by the EC or agents acting on its behalf • Cooperation with the competent authorities of the third country to carry out those site inspections • The inclusion in the List is valid for 5 years, subject to a mid-term review

22. 5) Inventories of Hazardous Materials

23. Sameprinciple as in HKC • 2 additionalmaterials (PFOS, Brominatedflame retardant HBCDD) • Concerns over quality of the processleading to IHMs (sampling, operator) and the potentialdevelopment of a sub-standard industry • Marketoperatorsneed to respect IMO guidelines • Potential guidelines to refinerequirements

24. Timeline - IHMs • From publication of the EU List:shipsgoing for recycling must carry IHM (Annex I at least, Annex II as far as practicable)(Art.5(2)) • From date of general application of the Regulation: new ships must carry IHM(Annex II)(Art.5(1)) (see definition of "new ship" in Art.2(2)) • From 31 December 2020: • - IHM for existing ships (Annex I at least, Annex II as far as practicable) • - IHM for ships flying the flag of a 3rd country (Annex I at least, Annex II as far as practicable)(Art.12(1)) • - 3rd country ships willing to register under EU flag to carry IHM within 6 months of registration / by 1st survey (Art.12(8))

25. 6) Financial Incentive Mechanism?

26. Main risk (outflagging) remains • Article 29 invites to report on feasibility of financialmechanism • Studyongoing (Ecorys – DNV-GL – Rotterdam Erasmus University) • Stakeholder meetings (April, September) • Final report: December 2015

27. Thank you for your attention! Ship Recycling mailbox: env-ship-recycling@ec.europa.eu