CHINA ECA REGULATIONS

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CHINA ECA REGULATIONS CHINA DOMESTIC ECAs Sea Water Areas of Pearl River Delta Yangtze River Delta and Bohai Sea Water Area First - ships calling at core ports Second ships calling to all ports in these areas Sea Areas will have to use marine fuels with a sulphur content of 0.50% Third - ships transiting these Sea Areas will have to use marine fuels with a sulphur content of 0.50% Fourth (?) - The sulphur limit may be lowered to 0.10% or ECA zones may be extended or both measures

CHINA ECA REGULATIONS - ENFORCEMENT 1 Jan. 2016 - ports inside ECAs if necessary can request ships to use fuel with a sulphur content 0.50% 1 Jan. 2017 - vessels at berth in core ports within ECAs shall use fuel with a sulphur content 0.50% (excluding the first hour at berth and the last hour before leaving berth) 1 Jan. 2018 - vessels at berth at all ports within ECAs shall use fuel with a sulphur content 0.50% 1 Jan. 2019 - all vessels entering ECAs shall use fuel with a sulphur content 0.50% end of 2019 - assessment whether further measures, such as lowering the sulphur limit to 0.10% or extending the ECAs, will be needed Scrubbers or Shore Power permitted

CHINA ECA REGULATIONS The Pearl Delta sea water connected by the points: A. Coastline junction point of Huizhou and Shanwei B. 12NM off Zhentouyan C. 12NM off Jiapeng Islands D. 12NM off Weijia Island E. 12NM off Dafanshi Island F. Coastline junction point of Jiangmen and Yangjiang The Core Ports Guangzhou Shenzhen Zhuhai

CHINA ECA REGULATIONS The Yangtze River Delta sea water connected by the points: A. Coastline junction point of Nantong and Yancheng B. 12NM off Waikejiao Island C. 12NM off Sheshan Island D. 12NM off Haijiao Reef E. 12NM off Dongnan Reef F. 12NM off Liangxiongdi Rock G. 12NM off Yushan Islands H. 12NM off Taizhou Islands I. 12NM off from the coastline junction point of Taizhou and Wenzhou J. The coastline junction point of Taizhou and Wenzhou The Core Ports Shanghai Ningbo Zhoushan Suzhou Nantong

CHINA ECA REGULATIONS The Bohai Sea Waters the sea water inside the line of two points: the coastline junction point of Dalian and Dandong; and the coastline junction point of Yantai and Weihai. The Core Ports Tianjin Qinhuangdao Tangshan Huanghua.

AIR EMISSIONS SOx - ECA FUEL AVAILABILITY NO ISSUES / NEW LSFOs COMPLIANCE over 95%

AIR EMISSIONS SOx - ECA

AIR EMISSIONS SOx - ECA USCG Voluntary fuel sampling Suspended (after 4 week pilot trial) Tests on 74 fuel samples taken from 47 vessels Only 9 samples from 6 vessels gave a sulphur content > 0.10%. 8 of these 9 fuel samples - marginal above 0.10% with Majority results within acceptable limits of statistical confidence of test errors USCG concluded that the results of the pilot programme show a relatively good accuracy of the sulphur content values provided in the BDN and thus suspended the programme Canada fuel sampling for sulphur content verification Canada s Vessel Pollution and Dangerous Chemicals Regulations Pacific Region has started the fuel sampling week of 1 August

AIR EMISSIONS SOx - Local CALIFORNIA AIR EMISSIONS BOARD «Sunset Clause» CARB Marine Notice 2014-1 (August 2014) Guidance for Complying with the California OGV Fuel Regulation during CARB Sunset Review Process. Evaluate the extent to which the enforcement program implemented by USCG and EPA will be as effective as the program being implemented to enforce the California OGV Fuel Regulation. Last info from CARB / decision by end of 2016