1. Anti-Trust/Competition Law Compliance Statement INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. INTERTANKO’s activities will be conducted in compliance with its Anti- trust/Competition Law Guidelines.

2. ENVIRONMENTAL CONTROL MARINE PROPULSION CONFERENCE 12 March 2008 London

3. SHIPPING RESPECTS THE ENVIRONMENT Goods moved by ships = THE most environmental friendly transportation World shipping carries 90% of world trade – good for the environment Oil tankers are environmentally-friendly, energy-efficient and effective in terms of –accidental oil pollution –minimising GHG emissions/oil transported Oil tankers transport over 2.4 billion tonnes of oil annually = two thirds of the oil and oil products world consumes Oil tankers working on environmental impact for years. One litre of fuel on a modern VLCC moves one tonne of cargo more than 2,800 kilometres (twice as far as 20 years ago) Carbon footprint of each of the world’s oil tankers is less than one-tenth of heavy truck and less than one hundredth of aircraft.

4. CONTROLLING ENVIRONMENTAL IMPACT HISTORY Tanker owners investing average $32bn/year N/Bs 75% of international tanker fleet is DH Accidental oil spills in 2000s = 1/3rd of 1990s = 1/10th of 1970s Oil transported > doubled since mid 1980s Significant gains in energy efficiency and reductions in environmental impact thro’: –Engine efficiency –SBT –TBT free paints –Optimal weather routing –Recovery of wasted heat –VOC reduction/retention

5. CONTROLLING ENVIRONMENTAL IMPACT EXISTING MEANS Tanker owners committed to continuous improvement Sulphur levels in ship fuels average just 60% (2.7%) of max permissible level (4%) New ship engines means lower NOx emissions INTERTANKO VOCON operational procedure reduces in transit VOC by 80% INTERTANKO member launched loading system almost eliminating VOC emissions during loading Loading system + VOCON valve = 80-90% reduction of VOCs from tankers Some voyages have 0 VOC emissions

6. CONTROLLING ENVIRONMENTAL IMPACT GHG EMISSIONS Climate change not questioned One high priority - search for efficiency gains Trade increase => fleet increase Larger, more efficient ships = less GHG / tonne-mile Shipping is part of the solution rather than being the problem itself Tanker owners & INTERTANKO totally committed to remaining at the forefront

7. CONTROLLING ENVIRONMENTAL IMPACT LOW SULPHUR MDO INTERTANKO recommends global use of LS MDO Global use of MDO will: –remove the need for SECAs –significantly reduce onboard waste –remove the need for scrubbers + avoid more onboard waste –remove fuel quality problems –take some of compliance burden from ship owner’s shoulders –make law enforcement and monitoring more straight-forward Key conclusions –MDO addresses root cause of SOx/NOx/PM emissions –MDO improves operational ease/efficiency (i.e. CO2 reduction) –MDO improves ship safety (esp in ports) –MDO brings shipping in line with air, road and rail industries –MDO is truly international option that sets one global standard –MDO leads to cleaner seas as well as to cleaner air

8. CONCLUSION = MDO Long-term, positive reduction of air emissions CO 2 saving by eliminating shipboard HFO treatment and exhaust scrubbing operations Prevention of fragmented regulations Long-term, predictable regulatory regime Simpler monitoring and control procedures Solid platform of requirements (IMO) Safer and simpler ship operations Better work environment for crews Reduction in waste for disposal – owner responsible Removal of quality problems with residual fuels Coastal/sea pollution less harmful from an MDO bunker spills compared to fuel oil

9. CONTROLLING ENVIRONMENTAL IMPACT BEST PRACTICE Best & safest practices = each industry does what designed/expected to do –refining industry provides clean, low-sulphur marine fuels. –shipping industry provides safe, efficient transportation –engine manufacturing industry develops technology to improve ships’ energy efficiency Shipping not concentrate on treating residual fuels so fit for use + purifying emissions – better handled by refineries Using ships as waste management plants is obstacle to innovation to achieve further increases in ships’ energy efficiency - including reduction of CO2 emissions

10. CONCLUSIONS MDO - a common-sense, immediate, global opportunity to significantly reduce emissions from ships MDO - part of a holistic set of measures to reduce air emissions from ships MDO - addresses root cause SOx/NOx/PM emissions MDO - better operational efficiency and in-port safety MDO - facilitates innovation, further/future reductions MDO - aligns shipping with other transportation MDO – truly international option - one global standard

11. Questions? bill.box@intertanko.com dragos.rauta@intertanko.com