JUNE 2014

LEGALBRIEFINGSharing the Club’s legal expertise and experience

Stricter air pollutionregulations on the horizon

LEGAL BRIEFING

2 Legal Briefing June 2014

Sharing expertiseThis briefing is one of a continuing serieswhich aims to share the legal expertise withinthe Club with our Members.

A significant proportion of the expertise in theManagers’ offices around the world consistsof lawyers who can advise Members ongeneral P&I related legal, contractual anddocumentary issues.

These lawyers participate in a virtual team,writing on topical and relevant legal issuesunder the leadership of our Legal Director,Chao Wu.

If you have any enquiries regarding the issues covered in this briefing, please contact the team via Chao Wu (chao.wu@thomasmiller.com or+44 20 7204 2157) and we will be pleasedto respond to your query. The team alsowelcomes suggestions from Members for P&Irelated legal topics and problems which wouldbenefit from explanation by one of thesebriefings.

Previous issuesCopies of previous briefings are available todownload as pdfs from our website. Visitwww.ukpandi.com/publications. !

THE AUTHORS

Ioana GonciariSenior Claims Executive

Ioana joined ThomasMiller in 2009 afterspending four yearsworking in anotherInternational Group P&IClub, where she

handled P&I and Defence claims,mainly for Greek shipowners. She isdual-qualified as a lawyer in bothEngland & Wales and Romania, andholds Master’s degrees in MaritimeLaw from Southampton University andEuropean Law from Paris. Ioana isfluent in French and Romanian.

Direct +44 20 7204 2117ioana.gonciari@thomasmiller.com

Ines CebrianTrainee

Ines joined ThomasMiller in 2013 workingin different areas of theP&I Club. She holds aMaster’s Degree in Law and postgraduate

qualifications in Communication inPublic and Political Institutions andMaritime Management. Ines is fluent in Spanish

Direct +44 (0) 20 7204 1234ines.cebrian@thomasmiller.com

June 2014 Legal Briefing 3

AIR EMISSIONS

Stricter air pollutionregulations on the horizonAir pollution from ships has been in the spotlight over recent years due to its increasing impact on the natural environment. The outcome has been a series of new regulations to limit exhaust and other atmospheric emissions from ships – globally, regionally and nationally.

MARPOL Annex VI sets global limits on ship exhaust emissionstogether with provisions for stricter emission control areas. Forexample in the North American Emissions Control Area, where thesulphur content of maritime fuelwas limited to 1% in 2012, twoUK Club member’s vesselshave already been fined for notswitching to low-sulphur fuel.

By 18th June 2014 allEuropean Union member statesare expected to implementdirective 2012/33/EU, whichbrings European national air pollution laws in line with MARPOLAnnex VI. They and other countries are also introducing regulationswhich go beyond MARPOL Annex VI requirements.

UK Club Members need to be fully aware of the growing andstricter atmospheric emissions measures being introduced aroundthe world. This update summarises the global, regional and national regulations currently in force and proposed. Club Members should be aware of the growing and stricter measures that will be brought inin the next few years. !

GLOBAL REGULATIONS

4 Legal Briefing June 2014

Prevention of air pollution from ships

Annex VI sets limits on sulphur oxides(SOx), particulate matter (PM) andnitrogen oxides (NOx) emissions fromship exhausts, as well as on volatileorganic compound emissions fromcargo tanks of oil tankers. It alsoprohibits deliberate emission of ozone-depleting substances from refrigeratingplants and fire-fighting equipment.Annex VI applies to all ships of 400 gtand above, and to all fixed and floatingdrilling rigs and other platforms. Atpresent it has been ratified by 75countries, including the USA,representing 94.77% of world tonnage.

Two sets of emission and fuel qualityrequirements are defined by Annex VI:(1) global requirements, and (2) morestringent requirements applicable toships in Emission Control Areas (ECA).An ECA can be designated for SOxand PM, or NOx, or all three types ofemissions from ships subject to aproposal from a country party to Annex VI.

A revised version of the Annex VIcame into force on 1st July 2010,reducing progressively the existinglimits on SOx and NOx emissions. The

associated NOx Technical Code 2008entered into force at the same time,making the ship operator and not theengine manufacturer responsible forcompliance.

The latest amendments introducednew regulations on energy efficiencyfor ships (from 1st January 2013) andthe United States Caribbean Sea ECA(from 1st January 2014).

Key elements

SOx and particulate matter limits

Regulation 14 of Annex VI sets a globalcap on the sulphur content of anymaritime fuel oil. It has been reducedgradually from 4.5% m/m prior to 1stJanuary 2012 to 3.5% m/m from 1stJanuary 2012 and 0.5% m/m from 1stJanuary 2020 (see Figure 1).

The latter limits will be revised andpotentially brought forward to 2018 if factors related to the availability of fuel oil in the market and the analysis of trendsmake it possible. Otherwise, it could be

postponed until 1st January 2025.These limits are reduced in an ECA to:

• 1.5% m/m prior to 1st July 2010• 1.0% m/m on and after 1st July 2010• 0.1% m/m on and after 1st January 2015

Sulphur content needs to bedocumented by the fuel oil supplierfollowing regulations on fuel oilavailability and quality (regulation 18).

NOx limits

NOx limits are covered by regulation13 of Annex VI, which sets progressiveand tighter standards for new engines ina three-tier scheme (see Figure 2).

Tier I standards, defined in the 1997version of Annex VI, apply to a dieselengine which is installed on a shipconstructed on or after 1st January2000 and prior to 1st January 2011, andrepresents the 17g/KW standard.

For Tier II, defined together withTier III in the Annex VI amendmentsadopted in 2008, NOx emission levelsfor a diesel engine installed on a shipconstructed on or after 1st January2011 are reduced to 14.4 g/kWh. ForTier III, NOx emission levels for adiesel engine installed on a shipconstructed on or after 1st January2016 are reduced to 3.4 g/kWh whenthe ship is operating in a designatedECA. Outside a designated ECA, TierII limits apply.

The same Tier I limits will apply tothose existing marine diesel enginewith a power output of more than5,000 kW and a per-cylinderdisplacement at or above 90 litresinstalled on a ship constructed between1st January 1990 and 1st January 2000.A certified approved method must beprovided following the requirements setin the NOx Technical Code.

The NOx Technical Code provides,

1.1.2012

1.1.2012* 1.1.2015

Outside ECA

1.7.20101.1.2015

Inside ECA

4.50%

3.50%

1.50%

1.00%

0.50%

0.10%

International Maritime Organization (IMO) Regulations for the Prevention of AirPollution from Ships were adopted in the 1997 protocol to the InternationalConvention for the Prevention of Pollution from Ships (MARPOL). The regulationsbecame Annex VI of the convention, which entered into force in May 2005.

Figure 1. Maximum allowable sulphur content in fuel according to MARPOLAnnex VI, Regulation 14

*Subject to review in 2018 Source: Lloyd’s Register

June 2014 Legal Briefing 5

GLOBAL REGULATIONS

‘mandatory procedures for the testing,survey and certification of marine dieselengines which will enable enginemanufacturers, shipowners andadministrations to ensure that allapplicable marine diesel enginescomply with the relevant limitingemission values of NOx as specifiedwithin regulation 13 of Annex VI’.

The IMO Marine EnvironmentProtection Committee at its 66thsession agreed to set the Tier IIIrequirements to be applied to themarine diesel engines installed on

• ships constructed on or after 1stJanuary 2016 and which operate inthe North American ECA or theUnited States Caribbean Sea ECA,both designated for the control ofNOx emissions

• ships constructed on or after the date of adoption by the committee of a newECA, or a later date as may be specified in the amendment designating thenew NOx Tier III ECA.

The amendments will come into forceon 1st September 2015.

Ozone-depleting substances

Regulation 12 of Annex VI prohibitsdeliberate emissions of ozone-depletingsubstances.

Installations on ships constructed onor after 19th May 2005 will beprohibited when containing ozone-depleting substances other thanhydrochlorofluorocarbons. They will beprohibited even if the ship had been

constructed before that date when ithad a contractual delivery date or theactual delivery of the equipment wason or after 19th May 2005.

Installations containing hydrochloro-fluorocarbons will be prohibited onships constructed on or after 1st January2020. They will be prohibited even ifthe ship had been constructed beforethat date when it had a contractualdelivery date or the actual delivery ofthe equipment was on or after 1stJanuary 2020.

Volatile organic compounds(VOC)

The control of volatile organiccompounds emitted to the atmosphereis governed by regulation 15 of Annex

VI, which applies mainly to tankers.However, this regulation also applies togas carriers only if the types of loadingand containment system allow saferetention of non-methane compoundson board or their safe return ashore.

There are two aspects of volatileorganic compounds control withinregulation 15. In the first, control onvolatile organic compounds emitted tothe atmosphere in respect of certainports or terminals is achieved by arequirement to utilise a vapouremission control system. Where sorequired, both the shipboard and shorearrangements are to be in accordancewith the standards for vapour emissioncontrol systems set in MSC/Circ.585.

A country party to Annex VI maychoose to apply such controls only toparticular ports or terminals under itsjurisdiction and only to certain sizes oftankers or cargo types. Where suchcontrols are required at particular portsor terminals, tankers not so fitted maybe accepted for a period of up to threeyears from the implementation date.Where a control system is requested,the relevant party is to notify IMO ofthat requirement and its date ofimplementation.

The second aspect of regulation 15requires that all tankers carrying crudeoil have an approved and effectivelyimplemented ship-specific volatileorganic compounds management plancovering the points given in theregulation. Guidelines for development

Tier

I

II

III

Ship constructiondate on or after

1 January 2000

1 January 2011

1 January 2016

Total weighted cycle emission limit (g/kWh)n = engine’s rated speed (rpm)

n < 130 n = 130 - 1999 n ≥ 2000

17.0 45.n-0.2 9.8e.g. 720 rpm – 12.1

14.4 44.n-0.23 7.7e.g. 720 rpm – 9.7

3.4 9.n-0.2 2.0e.g. 720 rpm – 2.4

Figure 2. NOx limits under MARPOL Annex VI, Regulation 13

GLOBAL REGULATIONS

6 Legal Briefing June 2014

of these plans is given by resolutionMEPC.185(59), and related technicalinformation on systems and operationof such arrangements is given bycircular MEPC.1/Circ.680.

Other means to comply

Annex VI regulation 4 allows nationaladministrations to approve alternativemeans of compliance that are at least aseffective in terms of emissionsreduction as the ones prescribed inregulations 13 and 14. The equivalentmethod used must have been approvedby the appropriate administrationaccording to guidelines developed byIMO.

In 2009, the MEPC.184(59)guidelines for Exhaust Gas CleaningSystems (EGCS) were adopted. Theseguidelines enable a ship to achieve low-sulphur requirements by waterwashing the exhaust gas stream prior to discharge to the atmosphere. Eachcountry party to Annex VI needs toensure that its port and terminalfacilities can accommodate residuesfrom exhaust gas cleaning systems.

Documentation requirements

International Air PollutionPrevention Certificate (IAPP)

Every ship of 400 gt and above subjectto an initial or renewal survey whichconfirms its equipment, systems, fittings, arrangements and materials fully complywith MARPOL Annex VI requirements, will be issued with an International AirPollution Prevention Certificate. Thiswill apply to ships registered under theflag of a country party to Annex VI andtrading internationally within otherParties’ jurisdiction. The certificate willbe issued for a period not longer than 5 years (regulation 6).

The bunker delivery note

Regulation 18 states that when a ship isfound not complying with MARPOLAnnex VI standards, the appropriateauthority may require the ship topresent the circumstances, informationand evidence of the actions carried outto achieve compliance. Furthermore,regulation 18 prescribes under the fueloil quality section that details of thecompliant fuel used must be recordedin a bunker delivery note that should

always be kept on board for anyinspections undertaken. The master orperson in charge might be required tocertify the truth of the note and toissue certified copies.

Every bunker delivery note must beaccompanied by a sample of fuel oilfollowing MEPC 96(47), guidelines for the sampling of fuel oil fordetermination of compliance withAnnex VI of MARPOL 73/78. Thatsample must be sealed and signed by itssupplier and the master or officer incharge of the bunkering and shall bekept at least for 12 months. The bunker delivery note must be kept for a period of three years after the fuel oilhas been delivered. This requirementapplies to ships subject to theInternational Air Pollution PreventionCertificate.

Compliance

Port State Control of a State Party toAnnex VI can inspect a ship berthedwhen there are clear grounds forbelieving that the master or crew arenot familiar with Annex VI procedures.Port State Control can then ensure theship will not sail until the ship complieswith Annex VI requirements. !

June 2014 Legal Briefing 7

REGIONAL REGULATIONS

The first step towards reducing SOxemissions by ocean-going ships wastaken in 1999 through the EUDirective 99/32/EU. It establishedlimits for sulphur content in heavy fueloil (1.0% after 1st January 2003) andgas oil, including marine gas oil (0.1%m/m after 1st January 2008). Later on,following entry into force ofMARPOL Annex VI, an amendingDirective 2005/33/EU becameeffective on 1st January 2010 andbarred any ship (irrespective of flag,type, age or tonnage) berthed oranchored in EU ports from usingmarine fuels with a sulphur contentexceeding 0.1% m/m.

Further amendments were introducedby Directive 2012/33/EU, which has been in force since 17th December 2012and will be implemented in EU member states by 18th June 2014. The directiveunderlines the need for a strongermonitoring and enforcement regime toguarantee proper compliance,suggesting periodic sampling, regularverification of ships’ logbooks andbunker delivery notes as well asdissuasive penalties. The directive alsoprescribes a publicly available register oflocal suppliers. However, it

acknowledges the negative effectscompliance could have on industry competitiveness, particularly regarding ECA regulations, and calls onthe European Commission to use all instruments needed to minimise this risk.

Key elements of the EUsulphur directive

Maximum sulphur content inmarine fuelFigure 3 shows the maximum sulphurcontent of marine fuel to be used inEurope and how this compares withMARPOL Annex VI.

Furthermore, from 1st January 2010marine diesel oils sold within the EUwill not exceed 1.5% m/m sulphur and marine gas oils sold and used within the EU will not exceed 0.1% m/m sulphur.

Other means to complyEmission abatement methods as analternative to using low-sulphur marinefuels are allowed in EU member states’ports, territorial seas, exclusiveeconomic zones and pollution controlzones. Ships using these methodsshould continuously achieve reductionsof SOx emissions that are at least

equivalent to the reductions that wouldbe achieved by using low-sulphurmarine fuels. The directive encouragesmember states to recognise alternativemethods, such as using liquefied naturalgas, on-board exhaust gas cleaningsystems and biofuels. In addition,member states should promote the useof onshore power supply systems bydocked vessels.

Regarding the availability of portwaste reception facilities to meet theneeds of ships using exhaust gascleaning systems in member states’ports, the directive states that theEuropean Commission should considerthe inclusion of this waste under theprinciple of ‘no special fee applied’ inport fees.

Sampling and Analysis for SulphurContent (article 6)EU member states require periodicsampling of marine fuel for on-boardcombustion both when it is beingdelivered and when it is already intanks. The sampling, analysis andinspection of marine fuel must beregistered in a ship’s logbooks andbunker delivery notes. Sulphur contentshould be determined by ISO method8754 (2003) or PrEN ISO 14596(2007). !

EU encourages stringent measuresEU regulations have recently been brought in line with MARPOL Annex VI to ensurecoherence with international law. However EU member states are also beingencouraged to introduce more stringent measures to speed up implementation oflower sulphur limits for marine fuels.

Outside SECAs

Within SECAs

*except for fuels supplied to ships using emission abatement methods subject to Article 4c operating in closed mode.**except if they are at berth less for than two hours or they use shore-side electricity instead.

Ships at berth in EU ports

0.1% already in effect since 1 January 2010**

Passenger ships

1.50% until 1 January 20200.50% as from 1 January 2020

1.00% until 31 December 20140.10% as from 1 January 2015

All ships

3.50% as from 18 June 2014*0.50% as from 1 January 2020

1.00% until 31 December 20140.10% as from 1 January 2015

Global Regulations

Marpol Annex VI

3.50% m/m on and after 1 January 20120.50% m/m on and after 1 January 2020

1.00% m/m on and after 1 July 20100.10% m/m on and after 1 January 2015

Figure 3. Maximum sulphur content in marine fuel

Regional Regulations: EU Directive 2012/33

EMISSION CONTROL AREAS

8 Legal Briefing June 2014

ECAs include those listed in ordesignated under regulations 13 and 14of Annex VI. The current designatedECAs are the Baltic Sea, North Sea,North American coast and, mostrecently, United States Caribbean Sea,including Puerto Rico and the USVirgin Islands (see Figure 4).

What do operators have todo to comply?

SOx and particulate matter emissioncontrols apply to all combustionequipment and devices on board, that is main and all auxiliary engines plus items such boilers and inert gas generators.

A ship which is operating within and

outside of an ECA shall use differentfuel oils to comply with the relevantlimits (see Figure 6). Therefore, prior toentry into an ECA, a full change overto a compliant ECA fuel is mandatoryand there must be written procedureson board of how this should beundertaken. These procedures shouldallow enough time for the fuel oilservice system to be fully flushed of allfuel oils that exceed the sulphurcontent limit before entering into theECA. Likewise, there should not be achange over from the compliant fueluntil the ship has left the ECA.

The sulphur content of fuels must bedocumented by its supplier. Everychangeover is required to be recorded,depicting the quantities of the ECA-

compliant fuel oils on board, the date,the time and the position of the shipwhen either completing the changeover prior to entry or commencingchange over after exit from such areas.These records must be made in alogbook as prescribed by the ship’s flagadministration.

The recently designated ECAs –North American and the United StatesCaribbean Sea – are the only oneswhere in addition to limits for SOxthere is a limit for NOx emissionsbelow tier III. Under MARPOL AnnexVI Tier III, NOx control requirementswill apply to installed marine dieselengines of over 130 kW output powerand built after 2016 while operating inECAs. !

Prevent, reduce and control

Emission Control Areas (ECAs) are defined by regulation 1, paragraph 8 of MARPOLAnnex VI as an area where the adoption of special mandatory measures foremissions from ships is required to prevent, reduce and control air pollution fromNOx, SOx or particulate matter, or all three types of emissions, and their attendantadverse impacts on human health and the environment.

Figure 4. Prevention of air pollution by ships (Emission Control Areas)

Special areas Date adopted Date entered into force Date effective

Baltic Sea SOx 26 September 1997 19 May 2005 19 May 2006(as defined in Annex I-MARPOL)

North Sea SOx 22 July 2005 22 November 2006 22 November 2007(as defined in Annex V-MARPOL)

North American SOx, and NOx and PM 26 March 2010 1 August 2011 1 August 2012(as defined in Appendix VII of Annex VI-MARPOL)

United States, Caribbean Sea ECA 26 July 2011 1 January 2013 1 January 2014 SOx, NOx and PM (as defined in Appendix VII of Annex VI-MARPOL)

Source: IMO

June 2014 Legal Briefing 9

GREENHOUSE GASES

The regulations apply to all ships of 400gt and above and entered into force on1st January 2013. Flexibility exists inthe initial period of up to six and a halfyears after entry into force, when theIMO may waive the requirement tocomply with the EEDI for certain newships, such as those already underconstruction.

The EEDI is a performance-basedmechanism that requires a certainminimum energy efficiency in newships and ships that have undergonemajor alteration from 1st January 2013.Ship designers and builders are free tochoose the technologies to satisfy therequirements in a specific ship design.

From 1st September 2015, the EEDIwill be applied to liquefied natural gascarriers, ro-ro cargo ships and passengerships, as well as cruise passenger shipswith non-conventional propulsion.Ships not propelled by mechanicalmeans and cargo ships with ice-breaking capability are exempt.

The SEEMP establishes a mechanismfor operators to improve the energyefficiency of their ships and ismandatory for all ships.

Ships under the chapter 4 regulationsare required to undertake anappropriate survey which will verifythat the ship attains the EEDI andSEEMP requirements. The relevantadministration will then issue anInternational Energy EfficiencyCertificate before the ship is engaged inany voyage to ports or offshoreterminals under the jurisdiction of anycountry party to MARPOL Annex VI.The certificate will be valid throughoutthe life of the ship subject to specialcircumstances covered in Annex VI.

European Union

On 28th June 2013, the EuropeanCommission published a proposedregulation on monitoring, reportingand verification of carbon dioxideemissions from ships of over 5,000 gtusing EU ports. If approved by theEuropean Parliament and Council andbecomes law, it would be directlyeffective in member states from 1st July2015 and the monitoring, reporting andverification system would becompulsory from 1st January 2018.

Under the new regulationshipowners would have to monitor andreport the verified amount of carbon

dioxide emitted by their ships andprovide certain other information, suchas data to determine the ships’ energyefficiency. This would be the first steptowards reducing carbon dioxideemissions through a monitoring,reporting and verification programmeaddressed to any ship, regardless of itsflag, in a non-discriminatory mannerwhen on intra-EU voyages and voyagesfrom and to EU ports.

The next stage will be theimplementation of market-basedmeasures, which will provide aneconomic incentive for the maritimeindustry to operate more energy-efficient ships. !

Greenhouse gas emissions regulations updated

IMO added a new chapter 4 to MARPOL Annex VI in July 2011, providing newregulations on energy efficiency for ships. The regulations introduce two mandatorymeasures: an Energy Efficiency Design Index (EEDI) for new ships and Ship EnergyEfficiency Management Plans (SEEMP) for all ships.

10 Legal Briefing June 2014

NATIONAL REGULATIONS

The US Act to Prevent Pollution fromShips implements MARPOL Annex VI.Record-keeping obligations for vesselsare mandatory to comply with the airemissions requirements and shipownersare advised to be aware of theseobligations. The US Coast Guard islikely to take a similar approach tosurveillance and prosecution as itcurrently does for discrepancies in oillogbooks and oily-water discharges.

CaliforniaNew requirements in the California

Ocean-Going Vessels Fuel Regulationcame into force on 1st January 2014.The new regulation limits themaximum fuel sulphur for both marinegas oil (DMA) and marine diesel oil(DMB) to 0.1% m/m and achieved thephase II requirements within theCalifornia regulatory zone for ocean-going vessels as shown in Figure 5.

The regulation comprises a fee

provision by which ships that are unable to achieve the fuel compliance can paya fee instead. Any person who commitsa violation of any provision is subject topenalties specified in the Health andSafety Code. The California Air Resources Board has recently levied fines up to US$300,000 on three vessels thatfailed to switch to low-sulphur fuel asprescribed by the regulation. !

United States of America

Fuel requirement

Phase I

Phase II

Source: California Air Resources Board. California Environmental Protection Agency

Effective date

1 July 2009

1 August 2012

1 January 2014

ARB’s California OGV fuel requirement % sulphur content limit

Marine gas oil (DMA) at or below 1.5% sulphur; orMarine diesel oil (DMB) at or below 0.5% sulphur

Marine gas oil (DMA) at or below 1.0% sulphur; orMarine diesel oil (DMB) at or below 0.5% sulphur

Both marine gas oil (DMA) and marine diesel oil (DMB) at or below 0.1% sulphur

Canada’s new Regulations Amendingthe Vessel Pollution and DangerousChemicals Regulations include newstandards that address the air emissionsfrom ships over 400 gt operating inCanadian waters.

The amendments refer toimplementation of the North AmericanECA, energy efficiency and Canadianvessels operating in the Great Lakes andSt Lawrence waters.

The regulations implement the North American ECA, which comprises

waters along the Pacific coast, theAtlantic coast, the Gulf of Mexico andthe eight Hawaiian Islands. It alsoincludes the waters under Canadianjurisdiction on the east and west coastssouth of latitude 60°N and almost 200nautical miles offshore. Within this area,the sulphur content limit of marine fuelis of 1.0% m/m, which will decrease to0.1% m/m after 1st January 2015.Outside the ECA the same standards asset in MARPOL Annex VI will apply.

If a vessel heading to Canada doesnot obtain compliant fuel, it will bereported to Transport Canada. Theregulations require vessels subject toMARPOL Annex VI to comply withthe global standards for ECAs for bothSOx and NOx limits and for thealternative compliance methods. Underthis provision, Transport Canada assessesand approves equivalencies forCanadian vessels in accordance withIMO guidelines. For foreign vessels, flag

states will assess and approve thesealternative compliance methods.

New vessels built after 30th June2013 that trade internationally arerequired to have their EEDI with theexemption of new Canadian vessels thatonly sail in Canadian waters or theGreat Lakes. Canadian vessels voyagingin the Great Lakes and St Lawrencewaters will follow the new fleet-averaging regime.

As an example of the types of claimthat may be expected in Canada, oneClub member has recently received a claim from a terminal for shutting down crane operations at adjacent berths dueto alleged air pollution. The memberswitched to low-sulphur fuel but therewere problems with the generator and,following reports of black smoke fromthe ship at berth, the terminal shutdown crane operations at adjacentberths due to pollution. Fortunately nofine was imposed by the authorities. !

Canada

Figure 5. Sulphur content limit – California

June 2014 Legal Briefing 11

NATIONAL REGULATIONS

As a contracting state to MARPOL,China will enforce the air emissionscontrol regulations in Annex VI.Although administrative notes havebeen issued by the China MaritimeSafety Administration, there are nospecific provisions regulating emissionsfrom ships.

Hong Kong: A new initiative

In Hong Kong, the Air PollutionControl (Marine Light Diesel)Regulation came into force on 1stApril 2014. It introduces a new sulphurcontent cap of 0.05% m/m for locallysupplied marine light diesel.

The Hong Kong EnvironmentalProtection Department has proposedrequiring all ocean-going vessels to uselow-sulphur fuel, defined in the newlegislation as fuel with sulphur contentnot exceeding 0.5% m/m, when at

berth in Hong Kong waters. All ocean-going vessels must initiate a switch tolow-sulphur fuel upon arrival at berth,complete the switch within one hour,then use low-sulphur fuel throughoutthe berthing period until one hourafter departure.

The Hong Kong government hasdeclared its long-term intention to setup an ECA for the Pearl River Delta.Meanwhile, since 2011 vessels havebeen participating in an industry-ledscheme called the Fair Winds Charterby which they switch voluntarily tolow-sulphur fuel when at berth inHong Kong. !

China

In France, there are new carbon dioxidereporting requirements, under whichforeign ship operators need to provideinformation to their French customersabout carbon dioxide emissions. ArticleL. 1431-3 of the French TransportCode came into effect in October 2013for all foreign shipping companies. !

France

On 1st January 2012, Turkey enactednew regulations on the sulphur contentlimits of marine fuels. The sulphurcontent must not exceed 0.1% m/m inall vessels coming to Turkish ports andnot exceed 1.5% m/m in passengervessels sailing in Turkey’s marinejurisdiction. These limitations apply toberthed ships but not to vesselstransiting the Turkish Straits withoutcalling at a Turkish port. !

Turkey

For further information about low-sulphur fuel problems and solutions, please seeUK P&I Club Risk Focus: Loss of Power (3/10/12) on the Club’s website.

SUMMARY

Annex VI to Marpol EU Directive 2012/33

SOx Outside ECAs 3.5% m/m on and after 1 January 2012 3.5% m/m from 18 June 20140.5% m/m on and after 1 January 2020 0.5% m/m from 1 January 2020

SOx Within ECAs 1.0% m/m on and after 1 July 2010 1.0% m/m until 31 December 20140.1% m/m on and after 1 January 2015 0.1% m/m from 1 January 2015

NOx Outside ECAs Three-tier scheme

NOx Within ECAs Tier III: reduction to 3.4 g/kwh

Other means to comply Alternative methods as effective as general standardsMEPC 184 (59) for guidelines on exhaust gas cleaning systems (EGCS)

Documentation Mandatory Surveys International Air Pollution Prevention Certificate (IAPP)Port State ControlFuel oil availability and quality and bunker delivery note

Greenhouse gas emissions EEDI and SEEMP

–

✓

✓

✓

––✓

✓

–

Figure 6. Summary of international and EU air pollution regulations

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