Sales of ODS to seaborne vessels under a foreign flag - Elements for the discussion- Joint Network Meeting Istanbul April 2010

Use of ODS on ships CFC / HCFC  Refrigeration Halons  Fire fighting (hand-held, fixed systems)  Fire prevention (inerting systems) Other uses:  In insulation foams  Solvent uses Mainly on military ships (e.g. torpedo cleaning) but also civil ships (e.g. degreasing of oxygen equipment)

Background of the discussion Reporting discrepancies  One detected reason: some parties report exports to ships while others don’t iPIC requests  Some parties consider trade with ships as import/export, others don’t IMO  Maritime Environment Protection Committee (MEPC 60) discussed need for import licenses, asked the Ozone Secretariat to discuss at OEWG

United Nations Convention on the law of the sea Article 91: Nationality of ships  … Ships have the nationality of the State whose flag they are entitled to fly. There must exist a genuine link between the State and the ship … Article 92: Status of ships  … Ships shall sail under the flag of one State only and … shall be subject to its exclusive jurisdiction …

United Nations Convention on the law of the sea Consequences:  A ship constitutes territory of the flag state  Same rules apply as for other deliveries to the flag state  Trade with a foreign flag ship is import or export

UNEP/OzL.Pro.3/11, Annex XI, Page 74 paragraph 8 8. In accordance with the recommendation of the Ad Hoc Group of Experts on the Reporting of Data, which held its first meeting at Nairobi on 6 and 7 December 1990, the quantities of controlled substances used for refilling the refrigeration and fire-extinguishing systems of ships in ports should be regarded as forming part of consumption of the country with jurisdiction over the part and should therefore, not, be included in its exports figures.

Conflicting rules ? Consequences:  Delivery of ODS to a foreign flag ship = import / export  to be reported  Servicing on board of a foreign flag ship = domestic consumption  not to be reported

Potential problems Data reporting gaps due to different interpretations Potential non compliance of the flag state with the consumption limits Licensing may cause delays Flag states may be confronted with huge banks Supply shortages Potential loophole for illegal trade Trade with non-parties...

Nota bene The same problem applies in principle to all foreign means of transport:  Aircraft  Trucks  Railways Rules on ODS use in ships:  Marpol Annex VI Regulation 12

Thank you for your attention Aléxandros Kiriazis European Commission DG Climate Action 1049 Brussels Belgium