International Seminar on Ship Recycling Towards the Early Entry into Force of the Hong Kong Convention London, 10 May 2019 Tanker Industry Perspective Tim Wilkins Environment Director & Regional Manager Asia-Pacific INTERTANKO

Ship Recycling and the Tanker Industry International Seminar on Ship Recycling, London 2019 INTERTANKO Statement on Ship Recycling and the Hong Kong Convention 1. INTERTANKO supports the introduction of international environmental and safety standards for ship recycling and encourages IMO Member States to ratify the Hong Kong Convention on Ship Recycling 2. Until the HKC is ratified and has entered into force, INTERTANKO recommends the use of the shipping industry’s guidelines on transitional measures for shipowners selling ships for recycling 3. Efforts by ship recycling facilities and class societies to adhere to the standards of the HKC prior to its implementation should be applauded and encouraged. In this respect, INTERTANKO welcomes the issuance of Statements of Compliance, verified by reputable third party organisations such as a member of IACS, to ship recycling facilities around the world. INTERTANKO believes that this positive progress: i. Opens the market for the international shipping industry to recycle globally at facilities that have been shown to meet the HKC standards; ii. Sets the benchmark for other facilities on the Indian sub-Continent and elsewhere to follow suit and further expand the market for HKC compliant facilities, and; iii. Demonstrates to the Governments in the leading recycling States that their facilities have the capability of meeting the HKC standards and as such, these countries should commence the process of ratifying the HKC.

Ship Recycling and the Tanker Industry International Seminar on Ship Recycling, London 2019 Why the urgency? Tanker recycling market Market conditions, aging fleet and increasing environmental regulations Scrutiny of environmental, social and governance (ESG) reports Financial risk and credit assessments Ratification of the Hong Kong Convention (HKC) EU Ship Recycling Regulation (EUSRR) IHM compliance EU List of Facilities (European and non-European), implemented 31st December 2018 EU Waste Shipment Regulation

Ship Recycling and the Tanker Industry International Seminar on Ship Recycling, London 2019 What are the key challenges? Developing and maintaining the Inventory of Hazardous Materials (IHM) Availability and accuracy of Material Declarations Veracity of IHMs provided with new buildings Can be overcome by the implementation and enforcement of the HKC on a mandatory basis by IMO Member States. Inconsistency in the application of the HKC standards at facilities with Statements of Compliance Can be overcome by the implementation and enforcement of the HKC on a mandatory basis in leading recycling States. Required oversight for the continued and consistent application of the HKC standards at recycling facilities

Ship Recycling and the Tanker Industry International Seminar on Ship Recycling, London 2019 Interim measures Procurement management and checks – avoid hazardous materials on board Urge transparency and the use of material declarations – encourage inclusion of MDs as requirement for type approval of marine equipment Owner intervention, assessment and checks with recycling facilities Use of industry developed best practice and guidance