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To Technical Information No. : 129-2018 : All BKI Customers 15 April 2018 Subject : Summary Report on IMO Meeting of Marine Environment Protection Committee (MEPC 72) Summary This Technical Information summarizes the result of 72nd Session of the IMO Marine Environment Protection Committee (MEPC 72) that was held from the 9 to 13 April 2018, at the 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 Page 1 of 11

The Agenda above are several technical issues discussed during the meeting. A brief coverage among the issues are 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 11

BRIEF INFORMATION ON IMO MEETING OF MARINE ENVIRONMENT PROTECTION COMMITTEE 72ND SESSION (MEPC 72) A. CONSIDERATION AND ADOPTION OF AMENDMENTS TO MANDATORY INSTRUMENTS (AGENDA ITEM 3) Taking into account the approval made at MEPC 71, the Committee agreed to adopt the following draft amendments to mandatory instruments: 1. BWM Convention 2. MARPOL Annex VI 3. IBC Code and BCH Code 1. BWM Convention The amendments to BWM Convention cover, among others: a. The amendments to Regulations A-1 and D-3 are intended to make Code for Approval of Ballast Water Management Systems (BWMS Code) mandatory under BWM Convention. Furthermore, the amendments to D-3 also clarify the application dates of the different revisions of Guidelines (G8) ((i.e. Guidelines (G8), the 2016 Guidelines (G8) and the BWMS Code), as follows: - Ballast water management systems installed on or after 28 October 2020 shall be approved in accordance with the BWMS Code, as may be amended; and - Ballast water management systems installed before 28 October 2020 shall be approved taking into account the guidelines developed by the Organization or the BWMS Code, as may be amended. The amendments to Regulations A-1 and D-3 are adopted by resolution MEPC.296(72). While, the BWMS Code is adopted by resolution MEPC.300(72). Both mandatory instruments are expected to enter into force on 13 October 2019. b. The amendments to B-3 stipulate the implementation schedule of ballast water management for ships, together with the determination of the survey referred to in regulation B-3 of the BWM Convention. The amendments to Regulations B-3 and the determination of the survey referred to in regulation B-3 of the BWM Convention are adopted by resolution MEPC.297(72) and MEPC.298(72), respectively. Both mandatory instruments are expected to enter into force on 13 October 2019. (For detail information regarding the implementation schedule please refer to our Technical Information No.102-2017 dated 22 September 2017 which can be downloaded in our website www.bki.co.id). c. The amendments to Regulations E-1 and E-5 clarify that no endorsement will be required on the BWM Certificate at an additional survey and adding explanation on Intermediate survey. Attachment of Technical Information No: 129-2018 Page 3 of 11

These amendments are adopted by resolution MEPC.299(72) and are expected to enter into force on 13 October 2019. d. In order to ensure smooth implementation of BWM Convention, the Committee approved BWM.2/Circ.66 containing the unified interpretation for Appendix I (Form of the International Ballast Water Management Certificate) of the BWM Convention. This unified interpretation provide guide on how the International Ballast Water Management Certificate should be completed. 2. MARPOL Annex VI The amendments to MARPOL Annex VI are related to ECAs and the required EEDI for ro-ro cargo and ro-ro passenger ships, which include: a. A minor amendment to Regulation 13 which the words "an emission control area designated under paragraph 6 of this regulation" are replaced with the words "a NOX Tier III emission control area". b. Amendments to Regulation 21 to replace parameters for determination of reference values for ro-ro cargo ships and ro-ro passenger ships, as follows: These amendments are adopted by resolution MEPC.301(72) and expected to enter into force on 1 September 2019 Attachment of Technical Information No: 129-2018 Page 4 of 11

3. IBC Code and BCH Code, The amendments to IBC Code and BCH Code are related to the Model form of the International Certificate of Fitness for the Carriage of Dangerous Chemicals in Bulk These amendments clarify that approved loading and stability information booklet is still required and a ship is required to have approved means for any loading conditions to confirm their compliance with intact and damage stability requirements. In addition, these amendments also introduce new paragraph 6 stating: "6 That the loading and stability information booklet required by paragraph 2.2.5 of the Code has been supplied to the ship in an approved form." The amendments to IBC Code and BCH Code are adopted by resolution MEPC.302(72) and MEPC.303(72), respectively. These amendments are expected to enter into force on 1 January 2020. B. HARMFUL AQUATIC ORGANISMS IN BALLAST WATER (AGENDA ITEM 4) During this session, MEPC 72 has adopted the BWMS Code (which was develop and revised under (G8) of BWM Convention), and will enter into force on 13 October 2019. Although there were issues of making procedure of (G9) Procedure for approval of ballast water management systems that make use of Active Substances into a Code under BWM Convention, the Ballast Water Review group has decided that it was not necessary to do so. However as a consequence of having revision to Guideline (G8), the (G9) procedures should also be revised. Ballast Water Management Approval Status The Committee has granted approval of the following Ballast Treatment System: 1. Enviroclease in TankTM BWTS (Bulk Chemical Variation) FINAL APPROVAL 2. Semb-Eco LUV 250, Semb-Eco LUV 500, Semb-Eco LUV 750, Semb-Eco LUV 1000 and Semb- Eco LUV 1500 TYPE APPROVAL from Administration 3. Alfa Laval Pure Ballast 3.2 Ballast Water management System TYPE APPROVAL from Administration Application of the BWM Convention to specific ship types Rescue tug boats Although some delegation have expressed their need in addressing the issues of having rescue tug boat to comply with the requirements of BWM Convention, few others mentioned that there are already provisions in BWM Convention and associated Guidelines in addressing the issues (allowing exemptions for emergency situations) which could be amended if necessary. However, in conclusion, Attachment of Technical Information No: 129-2018 Page 5 of 11

MEPC 72 has decided that taking into account the comments and concerns expressed during this session, a new work output for future session (MEPC 73) could be submitted in order to pursue the issue. Unmanned non-self-propelled (UNSP) barges Align with the above issue of rescue tug boats, issues with regard to the implementation of BWM Convention to UNSP barges also faces several technical difficulties. MEPC 72 has also concluded that the co-sponsor could submit proposal for new work output for future session (MEPC 73). Contingency measures in the ballast water management plan Having recalled that MEPC 71 had approved Guidance on contingency measures under BWM Convention (BWM.2/Circ.62), it was agreed by the Ballast Water Review Group that Guidelines for ballast water management and development of ballast water management plans (G4) should be reviewed as a part of the experience-building phase associated with the BWM Convention. The issue indicated under this agenda was whether a BWM Plan has to revised (and approved) to address matters in relation with contingency plan. Although it was recognized that inclusion of information on contingency measures in BWMP is important and need to be dealt with immediately, the Ballast Water Review Group was then tasked to shed light on this issue. In the Group, there were debates over whether contingency measures was mandatory and relevant items to be included, therefore future work is needed to clarify the issues, which MEPC 72 invited future proposal on it. Recording of the operation of ballast water pumps The issues on this item were to have the working time of ballast water time and having to connect it to the ships GPS System. Recalling the support and concerns of delegations under this agenda, MEPC 72 then requested the sponsor to propose and submit new work program to future session (MEPC 73) especially in addressing the benefits of it. Development of a model course under the BWM Convention There were extensive supports under this proposal, while some delegations addressed that more information is required to find the specific needs for seafarer training on ballast water management. Nevertheless MEPC 72 has requested that proposal for new work programmed should be submitted to MEPC 73. Attachment of Technical Information No: 129-2018 Page 6 of 11

C. AIR POLLUTION AND ENERGY EFFICIENCY (AGENDA ITEM 5) Draft amendments to MARPOL Annex VI for a prohibition on the carriage of non-compliant fuel oil The Committee recalled that MEPC 71 had approved the new output on "Consistent implementation of regulation 14.1.3 of MARPOL Annex VI", for inclusion in the PPR Sub-Committee's biennial agenda for 2018-2019 and the provisional agenda for PPR 5, with a target completion year of 2019. The prohibition on carriage fuel is purposed for combustion for propulsion or operations on board. Otherwise, the ship should has an approved equivalent arrangement in place, such as an exhaust gas treatment system. Corresponding amendments were also made to the supplement to the International Air Pollution Prevention (IAPP) Certificate In this regard, the Committee approved the draft amendments to MARPOL to prohibit ships from carrying fuel oil of non-compliant fuel oil which with a Sulphur content above 0.50%. These amendments will be adopted at MEPC 73 scheduled for October 2018. In addition, The Committee noted that it was not necessary to cross reference the equivalent provisions in regulation 4.1 to the draft revised regulation 14.1 of MARPOL Annex VI. Framework of ISO 8217 The Committee noted the information provided in document MEPC 72/5/2 (Secretariat) and, in particular, as an interim solution to the development of a new or significantly revised standard, the initiation of the process to develop an ISO Publicly Available Specification (PAS) to provide detailed guidance to fuel suppliers and users; forwarded this document to the Intersessional Meeting for information. In this connection, the Committee noted updated information provided by the observer from ISO regarding the approval of PAS 23263 on Guidelines for fuel suppliers and users regarding marine fuel quality considering the implementation of maximum 0.50% Sulphur content in 2020. Best practice for fuel oil purchasers/users The Committee approved the MEPC.1/Circ.875 on Guidance on best practice for fuel oil purchasers/users for assuring the quality of fuel oil used on board ships. Best practice for fuel oil providers The Committee concurred with the view of the Group that the draft Best practice guidance for fuel oil suppliers as contained in document MEPC 72/INF.13 could form a basis for the development of IMO guidance. In this regard, The Committee invited Member Governments and international organizations to submit comments and other further submission to the MEPC 73. Attachment of Technical Information No: 129-2018 Page 7 of 11

Ozone-depleting substances used to service ships The Committee noted that the Kigali Amendment adopted at the twenty-eighth Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer (MOP 28) in October 2016, which includes hydrofluorocarbons (HFCs) as part of its ambit, had met its requirements for entry into force and would enter into force on 1 January 2019. The Committee noted an update by the IMO secretariat on the decision by the Parties to the Montreal Protocol on the treatment of ozone-depleting substances. The secretariat will continue liaising with the Ozone Secretariat and provide another update to MEPC 74. Amendment to regulation 21 of MARPOL Annex VI on the reference line for Ro-ro The Committee adopted an amendment to the regulation to introduce a new reference line for ro-ro passenger ships and ro-ro cargo ships which will enter into force on 1 September 2019 prior to phase 2 of the EEDI requirement. At the request of several member States, MEPC encouraged an early implementation (i.e. to phase 1 ships) which is stated in the cover resolution of the amendment. Minimum propulsion power to maintain the maneuverability of ships in adverse conditions The Committee considered a proposal for a new numerical method for the wave resistance calculation. However, it was decided that further discussion on this matter shall be conducted at the next session and invite the interested Member Governments and international organizations to make every effort to further develop the draft revision of the 2013 Interim Guidelines, for submission to MEPC 73. D. FURTHER TECHNICAL AND OPERATIONAL MEASURES FOR ENHANCING THE ENERGY EFFICIENCY OF INTERNATIONAL SHIPPING (AGENDA ITEM 6) The Committee recalled that MEPC 70 had adopted, by resolution MEPC.278(70), new regulation 22A of MARPOL Annex VI related to the data collection system for fuel oil consumption of ships, which had entered into force on 1 March 2018. The Committee also recalled that: 1. MEPC 70 had adopted the 2016 Guidelines for the development of a Ship Energy Efficiency Management Plan (SEEMP) (resolution MEPC.282(70)); 2. MEPC 71 had adopted the 2017 Guidelines for Administration verification of ship fuel oil consumption data (resolution MEPC.292(71)) and the 2017 Guidelines for the development and management of the IMO Ship Fuel Oil Consumption Database (resolution MEPC.293(71)); and 3. MEPC 71 had approved MEPC.1/Circ.871 on Submission of data to the IMO data collection system of fuel oil consumption of ships from a State not party to MARPOL Annex VI. Attachment of Technical Information No: 129-2018 Page 8 of 11

IMO Ship Fuel Oil Consumption Database The IMO Ship Fuel Oil Consumption Database had been launched as a new module within the GISIS platform. The information regarding guidance for users in Administrations and recognized organizations also had been circulated by IMO through Circular Letter No.3827. Moreover, in order to ensure the completeness of the Database related to communication with Administrations, the Committee agreed to develop means of communications which should be incorporated as features in the new GISIS module. Confirmation of compliance pursuant to regulation 5.4.5 of MARPOL Annex VI and Submission of the part II of the SEEMP The Committee agreed on the following proposals on: 1. providing a sample form of the confirmation of compliance for part II of the Ship Energy Efficiency Management Plan (SEEMP) pursuant to regulation 5.4.5 of MARPOL Annex VI; and 2. early submission of SEEMP part II to ensure the verification of the ship fuel oil consumption data collection plan can be completed in time for approval in accordance with regulation 22.2 of MARPOL Annex VI. Following its agreement on the proposals, the Committee approved MEPC.1/Circ.876 containing Sample format for the Confirmation of compliance, early submission of the SEEMP part II on the ship fuel oil consumption data collection plan and its timely verification pursuant to regulation 5.4.5 of MARPOL Annex VI. Proxy for transport work for ships that do not carry cargo The Committee recalled that MEPC 71 had invited interested Member Governments and international organizations to submit proposals for guidance on how to deal with offshore and marine contracting vessels under the IMO data collection system. After deliberation on proposals submitted under this Agenda, the Committee noted the suggestion stating that the second step of the three-step approach, i.e. data analysis, should not apply to dynamically positioned (DP) ships which are not engaged in "transport work". Therefore, the Committee invited interested Member Governments and international organizations to submit relevant concrete proposals to MEPC 73, with a view to developing a comprehensive and uniform approach for identifying ships not engaged in "transport work". Attachment of Technical Information No: 129-2018 Page 9 of 11

E. REDUCTION OF GHG EMISSIONS FROM SHIPS (Agenda item 7) The Committee recalled that MEPC 70 had approved the Roadmap for developing a comprehensive IMO strategy on the reduction of GHG emissions from ships (The Roadmap) (MEPC 70/18, annex 11), which foresaw the adoption of an initial Strategy at this session of MEPC and a revised Strategy at MEPC 80 (spring 2023). The Initial strategy sets out as follows: 1. Preamble/introduction/context; 2. Vision; 3. Levels of ambition and Guiding Principles; 4. List of candidate short-, mid- and long-term further measures with possible timelines and their impacts on States; 5. Barriers and supportive measures; capacity building and technical cooperation, R&D; 6. Follow-up actions towards the development of the revised Strategy; and One of the objectives of the IMO Initial Strategy is identifying appropriate mechanisms to help achieve the above objectives, including incentives for research and development and monitoring of GHG emissions from international shipping. The Levels of ambition are agreed as follows: 1. carbon intensity of the ship to decline through implementation of further phases of the energy efficiency design index (EEDI) for new ships; review with the aim to strengthen the energy efficiency design requirements for ships with the percentage improvement for each phase to be determined for each ship type, as appropriate; 2. carbon intensity of international shipping to decline to reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008; and 3. GHG emissions from international shipping to peak and decline to peak GHG emissions from international shipping as soon as possible and to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008 whilst pursuing efforts towards phasing them out as called for in the Vision as a point on a continuing trajectory of CO2 emissions reduction consistent with the Paris Agreement temperature goals Further work will continue to develop a programme of follow-up actions which could include possible short term measures which could be finalized and agreed between 2018 and 2023. In addition, the Committee considered the dates for the fourth meeting of the ISWG (ISWG-GHG 4), taking into account the views of the Group and noting the difficulty of scheduling the meeting so as to provide sufficient time for delegations to prepare and submit documents and taking into account document deadlines, as well as other scheduled IMO meetings, meetings of UNFCCC, and the availability of the Main Hall at the Organization's Headquarters. Therefore, it was agreed to hold a fourth intersessional working group on GHG emissions, with the date to be decided. Attachment of Technical Information No: 129-2018 Page 10 of 11

F. LIST OF MEPC RESOLUTIONS ADOPTED BY MEPC 72 1. Resolution MEPC.296(72) Amendments to Regulations A-1 and D-3 of the International Convention for the Control And Management of Ships' Ballast Water and Sediments, 2004 2. Resolution MEPC.297(72) Amendments to Regulation B-3 of the International Convention for the Control and Management of Ships' Ballast Water and Sediments, 2004 3. Resolution MEPC.298(72) Determination of the Survey Referred to in Regulation B-3, as amended, of the BWM Convention 4. Resolution MEPC.299(72) Amendments to Regulations E-1 and E-5 of the International Convention for the Control and Management Of Ships' Ballast Water and Sediments, 2004 5. Resolution MEPC.300(72) Code for Approval of Ballast Water Management Systems (BWMS Code) 6. Resolution MEPC.301(72) Amendments to MARPOL Annex VI (ECAs and Required EEDI for Ro-Ro Cargo and Ro-Ro Passenger Ships) 7. Resolution MEPC.302(72) Amendments to the International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (IBC Code) 8. Resolution MEPC.303(72) Amendments to the Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (BCH Code) 9. Resolution MEPC.304(72) Initial IMO Strategy on Reduction of GHG Emissions from Ships G. LIST OF OTHER INSTRUMENTS APPROVED BY MEPC 72 1. BWM.2/Circ.66 on Unified Interpretation of Appendix I (Form of the International Ballast Water Management Certificate) of the BWM Convention 2. BWM.2/Circ.67 on Data gathering and analysis plan for the experience-building phase associated with the BWM Convention 3. BWM.2/Circ.33/Rev.1 on Guidance on scaling of ballast water management systems 4. BWM.2/Circ.43/Rev.1 on Guidance for Administrations on the type approval process for ballast water management systems 5. MEPC.1/Circ.875 on Guidance on best practice for fuel oil purchasers/users for assuring the quality of fuel oil used on board ships 6. MEPC.1/Circ.876 on Sample format for the Confirmation of compliance, early submission of the SEEMP part II on the ship fuel oil consumption data collection plan and its timely verification pursuant to regulation 5.4.5 of MARPOL Annex VI 7. MSC-MEPC.2/Circ.12/Rev.2 on Revised guidelines for Formal Safety Assessment (FSA) for use in the IMO rule-making process H. LIST OF DRAFT INSTRUMENTS IN MEPC 72 Draft Amendments to Regulation 14 of MARPOL Annex VI and the Form of the Supplement to the IAPP Certificate. Attachment of Technical Information No: 129-2018 Page 11 of 11