Regulatory Update what s hot?
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1 MARITIME Regulatory Update what s hot? Post MEPC 73 update David Wendel 08 November DNV GL 08 November 2018 SAFER, SMARTER, GREENER
2 IMO HQ main hall 2
3 Regulations towards 2030 Adopted IMO GHG strategy EU Recycling EiF Core ports in Chinese area 0.5% sulphur All ports in Chinese area 0.5% sulphur Chinese DECA 0.5% sulphur 0.5% global sulphur cap Ballast Water Convention - entry into force New Zealand biofouling regulation HSFO carriage ban Baltic / North Sea NECA California shore power EU CO2 Monitoring, Reporting and Verification Global fuel consumption Data Collection System EEDI phase 2 EEDI phase Regulation of operational CO2 emissions BC, noise, and VOC regulation Norwegian cruise ship regulations HFO ban in Arctic Bio-fouling regulation Carbon pricing / MBM Chinese 0.10% and ECA application? EEDI Phase 4 In the pipeline, or possible EU ETS includes shipping? HK Recycling convention ratified? Additional ECAs established? 3
4 CO 2 4
5 5
6 6
7 IMO strategy on GHG reductions vision and ambitions Vision: IMO remains committed to reducing GHG emissions from international shipping and, as a matter of urgency, aims to phase them out as soon as possible in this century Ambitions: review EEDI with the aim to strengthen requirements reduce the average carbon intensity (CO2 emissions per transport work) by 40% in 2030 and 70% in 2050 compared to 2008 reduce total GHG emissions from shipping by at least 50% in 2050 compared to
8 IMO strategy on GHG reductions timeline Decide an initial strategy at MEPC 72 in spring 2018 The strategy will be assessed in the period up to 2023 and will then be revised to include further measures ACTION PLAN IMPLICATIONS AGREEMENT vision, objectives, level of ambition OK measures and timelines impact on states and supporting measures, R&D ASSESSMENT Strategy will have implications for requirements to ship operational- and design energy efficiency 8
9 Initial IMO Strategy on reduction of GHG emissions - vision and ambitions Short-term Tighter EEDI & SEEMP Energy efficiency indicators Speed reduction National Action Plans Mid-term Energy efficiency measures for new and existing ships, using new indicators Carbon pricing / MBM Plan for low carbon fuels Long-term 2030 Development of carbon neutral / zero carbon fuels New/innovative emission reduction mechanisms 9
10 Possible emission pathway Source: DNV GL Maritime Forecast to 2050 Published 2018
11 IMO strategy and workplan on GHG reductions - impacts Will not impact existing ships in the very short term Will impact vessel design and operation in the 2020s In the long term, development and wide-spread use of carbon neutral fuels is essential, in addition to energy efficiency and logistics measures Ships have changed a lot over the last 150 years; in 2050 ships will be very different from today 11
12 SOx 12
13 Sulphur emission regulations the global picture 13
14 0.50% in 2020 the key questions Fuel availability (global, regional and port) Implementation and transition measures Enforcement 14
15 Will 2020 be delayed? Legal aspects Decision is made, no provisions for reopening Review clause being removed If new amendments; entry into force after Jan Political aspects No appetite amongst member states Politically unacceptable to EU, US, Australia New Zealand, Japan, China etc. Sufficient to block new amendments Damage to IMO standing unacceptable Stakeholders Industry NGOs supportive of 2020, focused on implementation Delay until 2025 would not solve anything, merely postpone When member states and NGOs support a decision; it stands 15
16 Enforcement of global cap High seas enforcement dependent on flag state, not port state Different levels of flag state stringency expected We expect enforcement of 0.50% to remain primarily a port state matter, focusing on vessel operations within own EEZ, with significant enforcement differences globally Importantly, the agreed HFO carriage ban improves on the situation and will significantly enhance high-seas compliance 16
17 EU air emission regulations in focus Sulphur regulations Enforcement increasingly stringent Remote sensing increasingly coming into play Acceptability of open loop scrubber water discharge remains an issue in some areas (e.g. Germany, Belgium) EU SOx emphasis expanding into other air pollution issues, in particular renewed focus on PM and NOx 17
18 Other MEPC 73 developments 18
19 Ballast water Guideline to assist administrations in identifying System Design Limitations finalized and approved Guideline for compliance testing at commissioning of BWMS approved. Compliance testing should be performed on all new installations of BWMS onboard new and existing tests G4 guideline amended to cover contingency measures in the BWMP. Administrations to decide on the timing for inclusion 19
20 Other matters Initial action plan to reduce marine plastic litter from ships agreed. To be further considered at upcoming meetings with an aim for agreement on measures by 2025 Use and carriage of HFO in the arctic remains under discussion, with the development of an impact assessment methodology being the present focus. A ban within the next few years remains a distinct possibility Biofouling saw significant attention. Presently at the stage of information being considered and reviewed Underwater noise and its impact on marine life remains under consideration, with Canada organising a high-profile workshop at the IMO end-january
21 Approved amendments Amendments to Ch. 17, 18 and 21 of the IBC code were approved, with a view to adoption at MEPC 74. EiF expected 1 Jan 2021 Amendments to Marpol Annex II were approved, imposing pre-wash requirements in north-european ports when unloading persistent floating products. Adoption intended at MEPC 74, EiF expected 1 Jan 2021 Amendments to Marpol and NOx technical code, enabling use of electronic record books, were approved. Guidelines for Electronic record Books also approved. Adoption intended at MEPC 74, EiF expected 1 Jan The US objected to the decisions and this may have impact on adoption / EiF. 21
22 The future? 22
23 Regulations on the horizon? Not only emissions to air! Invasive species / Hull bio-fouling Increasing focus on biofouling Particulate matter (PM) & NOx Significantly increasing EU focus on PM2.5 & NOx emissions in own coastal areas Underwater noise Primarily driven by Canadian and NGO concern for cetaceans, kept alive at IMO IMO Regulations potentially agreed sometime next decade EU PM regulations likely to materialise first, probably limited to selected EU waters Expect an increasing number of domestic / port / local regulations (e.g. NOx / PM, water discharge, biofouling) 23
24 Wrapping up 1. CO 2 MRV for the EU in IMO fuel consumption reporting in Dual reporting systems for some years, possible indefinitely 2. IMO GHG strategy agreed, EEDI and SEEMP measures before 2023, CO 2 MBM possible in the mid-20 s. Zero-carbon fuels essential in the longer term 3. Interaction EEDI review and GHG strategy will lead to more stringent requirements and/or tighter timeline 4. Global sulphur 0.5% in Numerous implementation issues, IMO very active 5. Chinese 0.1% ECA possible 6. North Sea / Baltic NOx ECA in PM & NOx concerns on the EU agenda 8. Local concerns increasingly driving local regulations 9. Bio-fouling regulations emerging 24
25 Thank you! David Wendel Key Account Manager SAFER, SMARTER, GREENER The trademarks DNV GL, DNV, the Horizon Graphic and Det Norske Veritas are the properties of companies in the Det Norske Veritas group. All rights reserved. 25
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