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To Technical Information No. : 155-2018 : Whom It May Concern 26 October 2018 Subject : Summary Report on IMO Meeting of Marine Environment Protection Committee (MEPC 73) Summary This Technical Information summarizes the result of 73 rd Session of the IMO Marine Environment Protection Committee (MEPC 73) that was held from the 22 to 26 October 2018, at IMO headquarters in London. Information The information provided in this Technical Information is the ones which have high relevance with the work of BKI. Any information or advice provided in this document shall be no responsibility of BKI and BKI shall not be liable to any person for any loss, damage or expense cause by its reliance. The following agenda are among those discussed during the meeting: Agenda Number Topic 3 Consideration and adoption of amendments to mandatory instruments 4 Harmful aquatic organisms in ballast water 5 Air pollution and energy efficiency 6 Further technical and operational measures for enhancing the energy efficiency of international shipping 7 Reduction of GHG emissions from ships 8 Development of an action plan to address marine plastic litter from ships Page 1 of 8

The Agenda above are several technical issues discussed during the meeting. A brief coverage among the issues is expressed in the attached document. More info Inquiries concerning the subject of this Technical Information should be directed to: BKI Statutory Division Yos Sudarso 38-40 Jakarta, 14320 Indonesia Phone : +62 21 436 1899, 436 1901, 436 1903, 436 1904 Fax : +62 21 4390 1974 Email : sta@bki.co.id Operation Director -Signed- Mohamad Cholil Disclaimer Any information or advice provided in this document shall be no responsibility of BKI and BKI shall not be liable to any person for any loss, damage or expense cause by its reliance. Page 2 of 8

BRIEF INFORMATION ON IMO MEETING OF MARINE ENVIRONMENT PROTECTION COMMITTEE 73 RD SESSION (MEPC 73) A. CONSIDERATION AND ADOPTION OF AMENDMENTS TO MANDATORY INSTRUMENTS (AGENDA ITEM 3) Drafting Group was established at this session to finalize the text of the draft amendments to MARPOL Annex VI concerning the prohibition on the carriage of non-compliant fuel oil combustion purposes for propulsion or operation onboard ships, and also modification to amendments to regulation 14. Although there were quite some discussion in the plenary session regarding the application time of Sulphur 0.5 % in 1 st January 2020, the Committee decided that this matter has already been finalized in the previous session and is not to be discussed further. Paragraph 1 of Regulation 14 MARPOL Annex VI is replaced with the following : "1 The sulphur content of fuel oil used or carried for use on board a ship shall not exceed 0.50% m/m." A new paragraph 2.3.3 is added to the Supplement to International Air Pollution Prevention Certificate (IAPP Certificate) as follows : 2.3.3 For a ship without an equivalent arrangement approved in accordance with regulation 4.1 as listed in paragraph 2.6, the sulphur content of fuel oil carried for use on board the ship shall not exceed 0.50% m/m as documented by bunker delivery notes The Committee then adopt the draft amendment to MARPOL Annex VI concerning the prohibition on the carriage of non-compliant fuel oil for combustion purposes for propulsion or operation on board a ship. B. HARMFUL AQUATIC ORGANISMS IN BALLAST WATER (AGENDA ITEM 4) Review Group on this matter was established during this session, and based on the outcome of the working group and discussion in the Plenary, the Committe then decided to approve draft BWM.2 Circular on Guidance on System Design Limitations of ballast water management systems and their monitoring, and instruct the Correspondence Group on Updated Survey Guidelines under the Harmonized System of Survey and Certification (HSSC), established by III 5, to ensure that the validation of BWMS at their commissioning be incorporated in the 2019 HSSC Guidelines for all ships, including new ballast water management system installations on existing ships. The Committee also approve draft BWM.2 circular on Guidance for the commissioning testing of ballast water management systems, and recognize that the timing of contingency measures information to be included in the BWM Plan of the ship shall be decided up to the Administration the the ship flying its flag. Attachment of Technical Information No: 155-2018 Page 3 of 8

Draft MEPC resolution on amendments to the Guidelines for ballast water management and development of ballast water management plans (G4) was adopted and the wording was put into a non-mandatory nature to give the idea that the Guidelines itself was non-mandatory. Furthermore, the commitee also approve new outputs for seafarer training provision with regrds to BWM Convention, and assign HTW Sub-committee as the associated organ. Te review Group will then be re-establish during MEPC 74. C. AIR POLLUTION AND ENERGY EFFICIENCY (AGENDA ITEM 5) Some of the issues raised in relation to this item agenda is the consideration of proposed shaft power limitation. While some member states insisted that the minimum power requirements in regulation 21.5 of MARPOL Annex VI and Interim Guidelines is to be retained, there were views that concerns need to be addressed to solve the controversy of safety and environment protection. Among others, the views were clarification on certifying an engine according to regulation 13 of MARPOL Annex VI if reserved power for an engine is allowed, application of several measures to future ships may create competitive disadvantage with existing ships of the same stype and based on engine load data from 2015 ship operations have found that the current slow steaming practices combined with limiting shaft power without operational changes would improves ship s EEDI score and reduce fuel use. The committee then invited member states and other interested parties to keep improving the data which would allow finalization of guidelines for determining minimum propulsion pwer to maintain the manoevrability of ships in adverse conditions. Further more, Working Group on the issue of Air Pollution was established, and among others the group were task with the following : 1. Consider the scope of application of the 2018 Guidelines for the discharge of exhaust gas recirculation (EGR) bleed-off water for EGRs that are already installed on existing ships Members of the working group agreed that the draft Guidelines should apply to a marine diesel engine fitted with an EGR device having a bleed-off water discharge arrangement, having an EIAPP Certificate issued on or after 1 June 2019. In addition, information of prohibition of any discharge of oil or oily mixtures into polar waters which is already prohibited under the Polar Code is added into it. 2. Further develop the draft Guidance on best practice for Member States/coastal States The Working group requested the Committee that Correspondence group (CG) should be established in resolving matters mentioned in the CG report, since a number of issues have not been addressed. One comment to be noted that the previous CG noted a view that the best practice should provide guidance which would allow member state / coastal state to act in case of nonavailability of Attachment of Technical Information No: 155-2018 Page 4 of 8

compliant fuel oil. Inclusion of guidance on fuel oil testing laboratories in the draft best practice is not supported. For the draft of best practice, the group noted on the following : 1. "enforcement of statutory requirement" should be retained; 2. both "availability" and "quality" of fuel oil should be retained; and 3. reference to SOLAS II/2 and/or flashpoint should also be included. 4. Finalize the draft Guidance on best practice for fuel oil suppliers The Working Group deleted the reference to 95% confidence level and make it easier to understand that it gives guidance on commercial issues. 5. Finalize draft amendments to MARPOL Annex VI for the EEDI phase 3 requirements Having looked at the data available in the EEDI Database provided in GISIS MARPOL Annex VI Module, it was recognized that lack of data exists, due to the reason that some ships types are having zero or minimum data to be generated into any kind of analysis. In this context, Member States is encourage to submit EEDI data, in particular to the types of ships which have minimum data. The Starting of EEDI Phase 3 on 2022 and a 40 % reduction factors to the EEDI reference line for several types of ships is decided to kept in abeyance by the committe due to split decision among member states on the way forward. 6. Review draft amendments to the 2014 Guidelines on the method of calculation of the attained Energy Efficiency Design Index (EEDI) for new ships 7. Finalize draft amendments to the 2014 Guidelines on survey and certification of the Energy Efficiency Design Index (EEDI) Having received the report of the working group and the discussion made in the plenary, the committe then re-establish the Correspondence Group on Fuel oil quality, and encourage member states to submit EEDI data, in particular, for ship types and sizes for which there was a lack of data. D. FURTHER TECHNICAL AND OPERATIONAL MEASURES FOR ENHANCING THE ENERGY EFFICIENCY OF INTERNATIONAL SHIPPING (AGENDA ITEM 6) In this item Agenda, special attention were made to the Unified Interpretation of MARPOL Annex VI in implementation of Data Collection System for fuel oil consumption of ships. With the voluntary Experience-Building Phase of the Fuel Oil Consumption Data Collection Systems, issues arise from the clarification on reporting other ship type, Convenrsion Attachment of Technical Information No: 155-2018 Page 5 of 8

factors (C F) for other fuel oil type and also the Disaggregated data report format and clerical errors in recording and reporting. Clarification on reporting other ship type The Secretariat has alrady updated the "User guidance on the ship fuel oil consumption on GISIS module" in order to make it clear and posted the updated guidance on the IMO Webpage. Reporting IMO Ship Fuel Oil Consumption Database for other ship type which are not defined in Regulation 2 of MARPOL Annex VI shal be in the order of the following, choosing other and then followed by entering a specific ship type. Conversion Factors (C F) for other fuel oil type Concern on this matter was that fuel oil supplier may not provide the emission factors for a particular type/batch of fuel being supplied, therefore table on 2016 Guidelines for the development of the Ship Energy Efficiency Management Plan (SEEMP) should be consulted, depending the nature of the bunker oil. Disaggregated data report format and clerical errors in recording and reporting The Company / the ship management of the ship shall be the responsible parties in preparing SEEMP including method of collection and aggregation of data which shall be accepted by the Administration. The type data being reported shall remain withing the choice of the Company (harcopy/electronic), and the IMO need not to provide guidance on such issue. The Committed then invited member states to Submit SEEMP Part II to the Administration or its RO as early as possible before the starting date of the data collection period (by the latest on 31 December 2018) With regard to the Unified Interpretations to Marpol Annex VI related to the Data Collection System for Fuel Oil Consumption Of Ships, the Comitte then approve unified interpretations to MARPOL Annex VI, for dissemination as MEPC.1/Circ.795/Rev.3. E. REDUCTION OF GHG EMISSIONS FROM SHIPS (AGENDA ITEM 7) In this item Agenda, the group agree to the holding of an Expert Workshop in preparation for the Fourth IMO GHG Study and concur with the view that the terms of reference of the Steering Committee and call for nominations should be in line with the practice followed for the Third IMO GHG Study. F. DEVELOPMENT OF AN ACTION PLAN TO ADDRESS MARINE PLASTIC LITTER FROM SHIPS (AGENDA ITEM 8) A new Agenda on the issue of marine plastic litter was established during this session. There were great number participants on this issue which should reflect the importance in this issue. Nevertheless, the Committee approve an MEPC Circular containing draft action plan in dealing with the Marine Plastic Litter within IMO scope and framework. Attachment of Technical Information No: 155-2018 Page 6 of 8

Special attention were given to fishing ship and reception facilities, echoing the importance of any member states parties to MARPOL Annex V to enhance its implementation and enforcement of MARPOL Annex V. Other issues on the proposed action plan were discussed and reflected in the MEPC Resolution. Furthermore, the committee establish a correspondence group to further discuss the issue and cooperate with the PPR Sub Comitte. Nevertheless, the committee also stresses the importance of public awareness on the issue of marine plastic litter generated from ships based on the draft action plan and also the importance of data sharing amongs interested parties be it member state and/or international organization to have a solid and general set of data to in understanding the issues at hand. One of member states were of the view that the draft action plan was so robust and have to be prioritize in order to fit the intended target / timeline. G. LIST OF MEPC RESOLUTIONS ADOPTED BY MEPC 73 1. Resolution MEPC.305(73) Amendments To Marpol Annex VI (Prohibition On The Carriage Of Non-Compliant Fuel Oil For Combustion Purposes For Propulsion Or Operation On Board A Ship); 2. Resolution MEPC.306(73) Amendments To The Guidelines For Ballast Water Management And Development Of Ballast Water Management Plans (G4) (Resolution Mepc.127(53)); 3. Resolution MEPC.307(73) 2018 Guidelines For The Discharge of Exhaust Gas Recirculation (EGR) Bleed-Off Water ; 4. Resolution MEPC.308(73) 2018 Guidelines On The Method Of Calculation Of The Attained Energy Efficiency Design Index (EEDI) For New Ships; 5. Resolution MEPC.309(73) Amendments To The 2014 Guidelines On Survey And Certification Of The Energy Efficiency Design Index (EEDI) (Resolution MEPC.254(67), as amended by Resolution MEPC.261(68)); 6. Resolution MEPC.310(73) Action Plan To Address Marine Plastic Litter From Ships; 7. Resolution MEPC.311(73) 2018 Guidelines For The Application Of Marpol Annex I Requirements To Floating Production, Storage And Offloading Facilities (FPSOs) And Floating Storage Units (FSUs). H. LIST OF OTHER INSTRUMENTS APPROVED BY MEPC 73 1. BWM.2/Circ.69 Guidance on System Design Limitations of Ballast Water Management Systems and their monitoring ; 2. BWM.2/Circ.70 Guidance for the commissioning testing of ballast water management systems ; 3. MEPC.1/Circ.795/Rev.3 Unified Interpretations to MARPOL Annex VI; 4. MEPC.1/Circ.855/Rev.2 2014 Guidelines on survey and certification of the Energy Efficiency Design Index (EEDI), as amended (Resolution MEPC.254(67), as amended by Resolutions MEPC.261(68) and MEPC.309(73)); 5. MEPC.1/Circ.875/Add.1 Guidance on best practice for fuel oil suppliers for assuring the Quality of Fuel Oil Used Delivered to Ships; 6. MEPC.1/Circ.878 Guidance on the Development of a Ship Implementation Plan For The Consistent Implementation Of The 0.50% Sulphur Limit Under MARPOL Annex VI ; Attachment of Technical Information No: 155-2018 Page 7 of 8

7. MEPC.1/Circ.879 Guidelines For the Carriage of Energy-Rich Fuels and their blends ; 8. MEPC.1/Circ.880 Reporting on the availability of compliant fuel oil in accordance with regulation 18.1 of MARPOL Annex VI. I. LIST OF DRAFT INSTRUMENTS IN MEPC 73 1. Draft Amendments to the NoX Technical Code 2008 (Certification Requirements For Scr Systems) 2. Draft Amendments to Marpol Annex VI (EEDI Phase 3 Requirements And EEDI Regulations For Ice-Strengthened Ships) 3. Draft Amendments to the International Code for the Construction and Equipment of ships Carrying Dangerous Chemicals In Bulk (IBC Code) 4. Draft Amendments to the Code For The Construction And Equipment Of Ships Carrying Dangerous Chemicals In Bulk (BCH Code) 5. Draft Amendments to Marpol Annex Ii Relating To Cargo Residues And Tank Washings Of Persistent Floating Products With A High Viscosity And/Or A High Melting Point 6. Draft Amendments to Marpol Annexes I, II, V And VI and the Nox Technical Code (Electronic Record Books) Attachment of Technical Information No: 155-2018 Page 8 of 8