AIR POLLUTION AND ENERGY EFFICIENCY. Report of the Working Group on Air Pollution and Energy Efficiency. Part 2

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E MARINE ENVIRONMENT PROTECTION COMMITTEE 67th session Agenda item 4 16 October 2014 Original: ENGLISH DISCLAIMER As at its date of issue, this document, in whole or in part, is subject to consideration by the IMO organ to which it has been submitted. Accordingly, its contents are subject to approval and amendment of a substantive and drafting nature, which may be agreed after that date. Introduction AIR POLLUTION AND ENERGY EFFICIENCY Report of the Working Group on Air Pollution and Energy Efficiency Part 2 1 The Working Group on Air Pollution and Energy Efficiency met from 13 to 16 October 2014 under the Chairmanship of Mr. Koichi Yoshida (Japan). 2 The working group was attended by delegates from the following Member Governments: AUSTRALIA ARGENTINA BRAZIL CANADA CHINA CYPRUS DENMARK ESTONIA FINLAND GERMANY GREECE ICELAND INDIA IRAN IRELAND ITALY JAPAN LIBERIA MALTA MARSHALL ISLANDS NETHERLANDS NIGERIA NORWAY PERU POLAND REPUBLIC OF KOREA RUSSIAN FEDERATION SAUDI ARABIA SINGAPORE SOUTH AFRICA SPAIN SWEDEN THAILAND TURKEY UNITED KINGDOM UNITED STATES VANUATU and an observer from the following inter-governmental organization: EUROPEAN COMMISSION (EC)

Page 2 And by observers from the following non-governmental organizations in consultative status: INTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO) INTERNATIONAL ASSOCIATION OF PORTS AND HARBORS (IAPH) BIMCO INTERNATIONAL ASSOCIATION OF CLASSIFICATION SOCIETIES (IACS) COMMUNITY OF EUROPEAN SHIPYARDS' ASSOCIATIONS (CESA) INTERNATIONAL ASSOCIATION OF INDEPENDENT TANKER OWNERS (INTERTANKO) SOCIETY OF INTERNATIONAL GAS TANKER AND TERMINAL OPERATORS LIMITED (SIGTTO) CRUISE LINES INTERNATIONAL ASSOCIATION (CLIA) THE EUROPEAN ASSOCIATION OF INTERNAL COMBUSTION ENGINE MANUFACTURERS (EUROMOT) THE GLOBAL OIL AND GAS INDUSTRY ASSOCIATION FOR ENVIRONMENTAL AND SOCIAL ISSUES (IPIECA) THE INSTITUTE OF MARINE ENGINEERING, SCIENCE AND TECHNOLOGY (IMarEST) THE ROYAL INSTITUTION OF NAVAL ARCHITECTS (RINA) INTERNATIONAL TOWING TANK CONFERENCE (ITTC) INTERNATIONAL TRANSPORT WORKERS' FEDERATION (ITF) WORLD SHIPPING COUNCIL (WSC) THE NAUTICAL INSTITUTE (NI) SUPERYACHT BUILDERS ASSOCIATION (SYBAss) CLEAN SHIPPING COALITION (CSC) Additional terms of reference 3 Taking into account relevant documents as well as comments and decisions made in plenary, the Working Group on Air Pollution and Energy Efficiency is instructed to:.1 prepare draft terms of reference for a correspondence group on draft guidance for assuring the quality of fuel oil supplied for use on board ships;.2 prepare draft terms of reference for a correspondence group on review of the status of technological developments for implementation of the EEDI, using the annex to document MEPC 67/4/15 as the basis; and.3 submit a written report to plenary by Thursday, 16 October 2014. Draft terms of reference for the Correspondence Group on Fuel oil quality 4 As instructed by the Committee, the group prepared draft terms of reference for a correspondence group on draft guidance for assuring the quality of fuel oil supplied for use on board ships, as set out in annex 1. 5 The United States 1 offered to coordinate the correspondence group. 1 Coordinator: Mr. Wayne M. Lundy Marine Safety, Security and Stewardship Systems Engineering Division U.S. Coast Guard Tel.: +1 202 372-1379 Email: Wayne.M.Lundy@uscg.mil

EEDI reviews required under regulation 21.6 of MARPOL Annex VI Page 3 6 As instructed by the Committee, the group prepared draft terms of reference for a correspondence group on review of the status of technological developments for compliance with the energy efficiency requirements in EEDI, as set out in annex 2. 7 During the discussion, the delegation of China, expressing its concerns on finishing all the terms of reference of the correspondence group within 2016 due to the short time frame, heavy work load and potential premature assessment of new technology, suggested to keep the words "provide a progress report to MEPC 68" and deleting others in paragraph 4 of the draft terms of reference. The group, noting the proposed schedule for the review provided in paragraph 12 of document MEPC 67/4/15, did not agree to the suggested deletion. 8 The delegation of Japan 2 offered to coordinate the correspondence group. Action requested of the Committee 9 The Committee is invited to approve part 2 of the report of the Working Group on Air Pollution and Energy Efficiency in general and, in particular, to:.1 agree to the draft terms of reference for a correspondence group on fuel oil quality under the coordination of the United States, as set out in annex 1 (paragraphs 4 and 5); and.2 agree to the draft terms of reference for a correspondence group for EEDI review required under regulation 21.6 of MARPOL Annex VI under the coordination of Japan, as set out in annex 2 (paragraphs 6 and 8). *** 2 Coordinator: Mr. Hideaki Saito Director for International Negotiations Office Ocean Development and Environment Policy Division Maritime Bureau Ministry of Land, Infrastructure, Transport and Tourism Japan Tel: +81 3 5253 8643 Email: saito-h55rp@mlit.go.jp

Annex 1, page 1 ANNEX 1 DRAFT TERMS OF REFERENCE FOR THE CORRESPONDENCE GROUP ON FUEL OIL QUALITY The correspondence group should, taking into account the discussion at MEPC 67:.1 develop draft guidance for assuring the quality of fuel oil delivered for use on board ships;.2 consider the adequacy of the current legal framework in MARPOL Annex VI for assuring the quality of fuel oil for use on board ships, taking into account the outcome of MSC 94, when available; and.3 submit a report to MEPC 68. ***

Annex 2, page 1 ANNEX 2 DRAFT TERMS OF REFERENCE FOR THE CORRESPONDENCE GROUP FOR EEDI REVIEW REQUIRED UNDER REGULATION 21.6 OF MARPOL ANNEX VI The correspondence group is instructed to review the status of technological developments relevant to implementing the phase 2 EEDI regulation, as required under regulation 21.6 of MARPOL Annex VI and should:.1 consider what information and data are pertinent for the review and how that information and data should be collated and analysed, including:.1 information obtained from the EEDI database established at MEPC 66;.2 publicly available and verifiable information from shipyards, naval architects and various other manufacturers regarding measurable energy improvements occurring from the actual installation and use of energy-saving technologies on ships, either in service or in demonstration programs, including at least the types of technologies that were identified in the Second IMO Greenhouse Gas Study 2009 (MEPC 59/INF.10, 9 April 2009) as well as in document MEPC 60/4/36; and.3 such other publicly available and verifiable information as the correspondence group identifies as being relevant;.2 using the above data and information, consider the status of technological developments for improvement of energy efficiency of the EEDI regulation in chapter 4 of MARPOL Annex VI, reporting on the following:.1 the range of technologies (e.g. engine technologies, materials, appliances, apparatus, alternative fuels, reduction of engine power and speed, hull improvements) that may be used to comply with the Phase 2 required EEDI and the extent to which these technologies currently contribute to vessels' compliance with the required EEDI;.2 the current use of these technologies on marine vessels with a characterization of the introduction and demonstration of these technologies in real world applications; and.3 the progress of ship builders, designers and engine manufacturers towards incorporating such technologies to bring technologies relevant to Phase 2 required EEDI fully to market;.3 recommend within the revision process whether the time periods, the EEDI reference line parameters for relevant ship types and the reduction rates set out in regulation 21 should be retained or, if proven necessary, should be amended as appropriate; and.4 provide a progress report to MEPC 68, an interim report to MEPC 69 and submit a final report to MEPC 70 in 2016.