Environmental Issues Update 1.Environmental Issues 1.Ship strikes on whales 2.Noise pollution 3.Biofouling 2.Environmental Regulations 1.Air emissions – GHG TEEMP 2.Ballast water 3.China pollution laws 3.Some thoughts for the future

1. Environmental Issues

Today’s Environmental Agenda... Anti-fouling systems Ballast Water management Biofouling Ship Recycling Port Reception Facilities (adequacy & affordability) Waste management (onboard and ashore) Stern tube lube oil releases Polar shipping Marine Noise pollution Whale strikes Spill Prevention and Response Planning VOC emission reductions Exhaust Gas emissions (Annex VI & its revisions) Green House Gas emissions 1. Environmental issues

1. Environmental Issues Ship strikes on whales 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! Source: IFAW

1. Environmental Issues Noise pollution Adverse anthropogenic marine/ocean noise impacts on cetaceans and other biota or... Noise pollution and its effect on marine mammals IMO Technical Guidelines for ship-quieting technologies plus potential navigational and operational practices Shipping noise increasing by 3dB per decade

but first...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 1. Environmental Issues Biofouling Invasive species a different route for organisms other than ballast water

Biofouling as an issue for the IMO – invasive species Organisms found in the sea chest – hydroids, bryozoans, mussels 1. Environmental Issues Biofouling Organisms found in the sea chest

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 - Micro versus Macro biofouling Air emissions benefits Invasive species benefits 1. Environmental Issues Biofouling

Biofouling – going forward IMO Guidelines National hull management requirements – USA & Australia Ban on hull management/cleaning ! 1. Environmental Issues Biofouling

2. Environmental Regulations

March 2010 IMO agreed on 1.Mandatory (MARPOL Annex VI) Energy Efficiency Design Index (EEDI) for new ships 2.Guidelines for voluntary use of the ship Energy Efficiency Operations Indicator (EEOI) 3.Guidelines for Ship Energy Efficiency Management Plan (SEEMP) and inclusion in MARPOL Annex VI 4.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 2. Environmental Regulations Air emissions – Greenhouse Gases (GHG)

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 1.Planning: Package of measures identified & Goal setting 2.Implementation: Implementation system 3.Monitoring: Monitoring system (tools and record keeping) 4.Self-evaluation & Improvement: Voluntary reporting –Part 2 – List of possible options for improving energy efficiency (use of INTERTANKO’s Guide) 2. Environmental Regulations Air emissions – Greenhouse Gases (GHG)

INTERTANKO’s Guide for a Tanker Efficiency and Emission Management Plan 2. Environmental Regulations Air emissions – Greenhouse Gases (GHG) 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

Possible measures

Industry Study

Possible Abatement Measures Gas fuelled engines Electronic engine control Waste heat recovery Air cavity lubrication Contra-rotating propeller Fuels cells as auxiliary engines Frequency converters Exhaust gas boilers on auxiliary engines Energy efficient light systems Wing generator Wind power – kite Wind power – fixed sails or wings Solar panels Trim/draft optimising Weather routing Voyage execution Steam plant operational improvements Speed reduction due to port efficiency Propeller condition Speed reduction due to fleet increase Hull condition Propulsion efficiency devices Cold ironing Engine monitoring Reduced auxiliary power usage

2. Ballast Water Management – Issue Development

2. Environmental Regulations Ballast Water Management IMO Ballast Water Convention –Entry into force dates –Technology –Guidelines

Entry into force - 1 –The BWM Convention will enter into force 12 months after ratification by 30 States, representing 35 per cent of world merchant shipping tonnage. –As at 26 April 2010: 22 countries representing 22.65% of world merchant shipping tonnage Canada now makes 23 countries Awaiting Brazil... –Implementation dates still important Environmental Regulations Ballast Water Management

Entry into force - 2 Summary of implementation dates: Ship constructed before 2009 BW capacity m3 – have treatment system from first intermediate or renewal survey after anniversary date in 2014 BW capacity less than 1500m3 and greater than 5000m3 – have to have treatment system from first intermediate or renewal survey after anniversary date in 2016 Ship constructed in or after 2009 BW capacity less than 5000m3 shall have a treatment system installed at its second annual survey and no later than 31/12/2011 Ship constructed after 2009 but before 2012 and with a BW capacity greater than 5000m3 shall have a treatment system from first intermediate or renewal survey after anniversary date in 2016 Ship constructed in or after 2012 with a BW capacity of greater than 5000m3 shall be constructed with a BW treatment system 2. Environmental Regulations Ballast Water Management

Treatment Generation of chemicals Approval Capital Cost ($USD) Power Consumption Other Costs: consumables, spares, maintenance Operating costs10-year Cost (Capex + Opex) Size (m3) Weight (kg) Pressure Drop # installations/contracts Largest installation Concern expressed over treatment systems to meet 2012 deadline INTERTANKO Environmental Committee – “need to find solutions to assist members and seek evidence that systems will work in practice” – what are the members experience and information 2. Environmental Regulations Ballast Water Management

IMO BWM Convention States continue to implement IMO Convention, e.g. Norway – –Implementation issues arising: Ballast Water Record Book format Other States seek to go beyond IMO Convention, e.g. USA IMO list of Guidelines continues to be important but overlooked by operators: Guidelines for Ballast Water Sampling Guidelines for Ballast Water Management and Development of Ballast Water Management Plans Guidelines for Ballast Water Exchange Guidelines for Ballast Water Exchange Design and Construction Standards Guidelines for Sediment Control on Ships 2. Environmental Regulations Ballast Water Management

China Oil Pollution Regulations

2. Environmental Regulations China Oil Pollution Regulations Regulations on the Prevention and Control of Ship-Induced Pollution of the Marine Environment 1st March 2010 Any ship-induced pollution accident or any ship-related operation that causes or may cause pollution damage to the internal waters, territorial seas, and the contiguous zones, exclusive economic zones and continental shelves of the PRC and all other sea areas under the jurisdiction of the PRC Need for ship emergency response plans All ships, except those of less than 1,000gt and not carrying oil cargoes, must carry insurance to cover claims for pollution The limit of liability is that in the PRC Maritime Code (LLMC 76). The insurance must be provided by an entity approved by the China MSA The operators of any ships carrying bulk hazardous and pollutant liquid cargo shall contract with an MSA approved local clean-up contractor It would seem that there this no limit of liability PRC Maritime Code (LLMC 76) Receivers of persistent oil cargoes are required to contribute to the PRC Fund, which would compensate for ship-induced pollution claims that are in excess of CLC limits. Provisions for discharge and receipt of waste (port reception facilities)

Regulations on the Prevention and Control of Ship-Induced Pollution of the Marine Environment INTERTANKO Observations and Queries 1.Await an official english translation and further guidance 2.Not certain whether CLC 92 for persistent oil or Bunker Convention 2001 for ships over 1,000gt would suffice in terms of insurance 3.Entities approved by the China MSA to provide insurance cover – P&I? 4.Require a list of approved clean-up contractors asap – deadline was 1 st March 5.Although China is not a party to the Fund, contributions to a PRC Fund would seem to be a local variation on the CLC Fund principle 6.Assumed that SOPEP and SMPEP would suffice as the ship emergency plans 7.Not clear whether standardised advance notification forms and waste delivery receipts for port waste reception facilities will be used 8.IG P&I clubs state delay for 3 months – no official proof/evidence received but no negative reports to date Environmental Issues China Oil Pollution Regulations

1.Environmental Issues 1.Ship strikes on whales 2.Noise pollution 3.Biofouling 2.Environmental Regulations 1.Air emissions – GHG TEEMP 2.Ballast water 3.China pollution laws 3.Some thoughts for the future

3. Some final thoughts On rules and regulations Issues generate guidelines. If guidelines deemed not to be working, legislation is proposed, developed and adopted. 2. Regional legislation frequently leads to international legislation. On the environment and environmental issues Environmental awareness and an environmental culture needs to be evident. Mandatory (STCW) amendments simply the baseline/minimum requirement. 4. An appreciation of the environment is not simply something for work but importantly, for life in general.

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