Current and Future Legislation Presented by Ian Adams Chief Executive INTERNATIONAL BUNKER INDUSTRY ASSOCIATION Bunkerworld Business Exchange 1
Introduction BLG 14 MEPC 60 MEPC 61 MARPOL Annex VI Conclusions Bunkerworld Business Exchange 2
BLG 14 Held between 8 and 12 February 2010 Agenda item 4 Application of the requirements for the carriage of bio-fuels and bio-fuel blends. Agenda item 9 Development of International Measures for minimising the transfer of invasive species through bio-fouling of ships. Agenda item 12 Review of relevant non-mandatory instruments as a consequence of the amended MARPOL Annex VI and the NOx Technical Code. Bunkerworld Business Exchange 3
MEPC 60 Held Between 22 and 26 March 2010 174 Papers Agenda item 3 Recycling of ships Agenda item 4 Prevention of Air Pollution from ships (GHG) Bunkerworld Business Exchange 4
Greenhouse Gases (GHG) MEPC 60 had 57 papers and 7 information papers on the topic of GHG in two broad categories Technical Issues Market Based Measures Bunkerworld Business Exchange 5
Technical Issues Energy Efficiency Design Index (EEDI) Main Engines innovation Aux Engines WHR New 26+ papers proposing modifications Bunkerworld Business Exchange 6
Market Based Measures (MBM) International Green House Gas Fund Cyprus, Denmark, Marshall Islands, Nigeria and International Parcel Tankers Association (IPTA) Emissions Trading Scheme (ETS) Numerous proposals submitted from France, Germany, Norway, WSC, UK and others. France, Germany, Norway and UK submitted a joint paper. Bunkerworld Business Exchange 7
Bahamas MEPC 60/4/10 ETS Likely to be traded only in developed Nations Favours newer ships Capital transfer from Developing to Developed Nations Compensation Fund/Levy/Tax First ever Global tax therefore caution advised Who collects it? How is it administered? Distribution of funds Conclusion Conclusion Disadvantageous to Developing Nations 90% for 2.7% Bunkerworld Business Exchange 8
MEPC 61 Held Between 27 September and 01 October 2010 172 Papers Agenda item 3 Recycling of ships (14) Agenda item 4 Prevention of Air Pollution from ships (12) Agenda item 5 Reduction of GHG Emissions from ships (49) Bunkerworld Business Exchange 9
MARPOL Annex VI ISO presented ISO 8217:2010 Norway/InterTanko proposed adoption of some elements of ISO 8217:2010 IBIA verbal intervention Bunkerworld Business 10
International GHG Fund Shipowners/operators: Purchase fuel from registered bunker fuel suppliers Keep the Bunker Delivery Note on board Bunker fuel suppliers: Mandatory/voluntary registration Provide a certified Bunker Delivery Note Collect and transfer directly to the International GHG Fund Electronic report and recordkeeping of bunker fuel sold States Parties: Port State Control Inspections of bunker fuel suppliers Bunkerworld Business Exchange 11
ETS Cap and Trade Global scheme All Ships covered by the scheme regardless of flag Bunkerworld Business Exchange 12
Revised MARPOL Annex VI IBIA became involved at BLG 10 (February 2006) Intersessional meeting in Oslo (November 2006) BLG 11 (February 2007) MEPC 56 (July 2007) Bunkerworld Business Exchange 13
Revised MARPOL Annex VI IMO SG Informal Cross Government/Industry Scientific Panel of Experts (4Q 2007) BLG 12 (February 2008) MEPC 57 (31 March 2008 4 April 2008) MEPC 58 (6 12 October 2008) Bunkerworld Business Exchange 14
MARPOL Annex VI MEPC 58 held 06 12 October 2008 1 July 2010 - Emissions Control Area (ECA) Sulphur Limit reduced to 1.00% (10,000 ppm) 1 January 2012 - Global Sulphur Cap reduced to 3.50% (35,000 ppm) 1 January 2015 - ECA Sulphur Limit reduced to 0.10% (1,000 ppm) 1 January 2020 - Global Sulphur Cap reduced to 0.50% (5,000 ppm) but subject to a review to be completed no later than 2018 if review is negative effective date defaults to 1 January 2025 Bunkerworld Business Exchange 15
MARPOL Annex VI - Status 61 Contracting States representing 84.92% of world tonnage have ratified the Convention Antigua and Barbuda Australia Azerbaijan Bahamas Bangladesh Barbados Belgium Belize Benin Brazil Bulgaria Canada Chile China Cook Islands Croatia Cyprus Denmark Estonia Finland France Germany Greece Iran (Islamic Republic of) Ireland Italy Jamaica Japan Kazakhstan Kiribati Kuwait Latvia Liberia Lithuania Luxembourg Malaysia Marshall Islands Mongolia Netherlands Norway Panama Poland Portugal Republic of Korea Romania St Kitts and Nevis St Vincent & Grenadines Samoa Saudi Arabia Serbia Sierra Leone Singapore Slovenia Spain Sweden Syrian Arab Republic Tuvalu Ukraine United Kingdom United States Vanuatu Hong Kong, China* * Denotes Associate Member Bunkerworld Business Exchange 16
Test Precision MARPOL Annex VI 1. MARPOL Sample taken to Accredited Laboratory 2. Sufficient for two tests removed Sample resealed 3. Run Test 4. If average of the two 1.00% or below no further action 5. If result >1.06% - considered off-spec 6. If >1.00% but <1.06% - retest at a different Laboratory 7. If average of both Lab results 1.00% or below no further action 8. If average of both Lab results above 1.00% - considered off-spec Bunkerworld Business Exchange 17
EU Regulation (Sulphur) Test methods are listed (the same tests as IMO MARPOL Annex VI) The statistical interpretation of the verification of the sulphur content of the gas oils used shall be carried out in accordance with ISO standard 4259 (1992) Bunkerworld Business Exchange 18
USA/Canada SECA Source: MEPC 59/5/x Bunkerworld Business Exchange 19
USA / Canada Proposal Not Included Pacific U.S. Territories Smaller (uninhabited) Hawaiian Islands U.S. Territories of Puerto Rico and the U.S. Virgin Islands The Aleutian Islands Western Alaska U.S. and Canadian Arctic Further information to be gathered to properly assess the above Bunkerworld Business Exchange 20
MEPC 61/7/3 submitted by the United States Source MEPC61/7/3 Bunkerworld Business Exchange 21
Conclusions MARPOL Annex VI will continue to change We are still some way from a solution on GHG Need to combine two different philosophies No more favourable treatment (IMO) and Common but differentiated responsibility (Kyoto) There is still a need for the Bunker Industry to be represented Regulators still need to be lobbied IBIA can and will co-ordinate the efforts of the Industry Bunkerworld Business Exchange 22
Thank you for your attention! For more information visit our website www.ibia.net or Email ibia@ibia.net Bunkerworld Business Exchange 23