Environmental Notation & Green Passport

1. Environmental Notation & Green Passport Environmental Notation & Green Passport LRNA, Inc. – Intertanko North American Panel Meeting 3/20/06

2. Introduction • Background • EP Notation • Brief History • IMO Guidelines • Green Passport • Granatina • Conclusion Intertanko North Ameican Committee Meeting, 20 March 2006

3. EP Rules why and what? • Why: • Increasing environmental awareness • IMO response to specific environmental issues • Commercial concerns • ISM environmental policy requirements • Public accountability of operations through environmental audits eg : ISO 14001. • What are they: • Independently derived environmental standards, whose effective implementation is verified by means of survey and audit processes. • An environmental benchmark - for what could reasonably be expected from environmentally conscious ship owner. • Goes beyond ISM and MARPOL

4. Operating Ship Sources

5. design build scrap operate Through-life solutions

6. Brief History • Traditional scrapping • 1980’s the beaches take over • 1995 Brent Spar • 1999 First Global Ship Scrapping Conference • Industry Guidelines – ILO, BC, ICS. • MEPC and the IMO Guidelines. (IMO Res A.962(23)) • 1st Tripartite meeting – Feb 2005 • MEPC agreed legally binding Instrument on Ship Recycling to be adopted in 2008-2009 • 2nd Tripartite Meeting – Dec 2005

7. IMO Guidelines on Ship Recycling • Promulgated in IMO Res A.962(23) • Ship Design • Minimize use of hazardous materials • Design for Recycling • Through life-inventory of potentially hazardous materials: Green Passport • Hazardous materials in ship’s structure and equipment • Operationally generated wastes • Stores • Preparation for scrapping • Selection of ‘approved’ recycling facilities. • Preparation for recycling.

8. Green Passport – What is it?? • A document that complies with IMO Res A962(23) para 5. • Consists of: basic details pertaining to the ship, and an inventory of hazardous materials. • But! • What materials should be in the Green Passport? • How much detail is required? • How is it produced? • Who will approve it?

9. The Green Passport inventory: • Asbestos • Paint • Plastic and Rubber materials • Materials containing PCBs, PCTs, PBBb at levels of >50 mg/kg • Refrigerants, fire-fighting media, blowing agents and other gases • Chemicals in ship’s equipment/ machinery • Electrical & electronic equipment • Constructional materials

10. Priorities & Role • Industry Priorities • Green Passport • Licensed dismantling facilities • Lloyd’s Register Role • Developing Green Passport template, industry guidance, procedures to permit implementation. • Approve, Verify and maintain Green Passports

11. EXISTING SHIP OPERATION Compile Data w/owners & Manufacturers Examine and Approve Verification Issue Green Passport Maintain Periodic Audits DESIGN Pre-Contract Review Specification Review/Developed Design for Recycling CONSTRUCTION Compile Data w/Shipyard & Manufacturers Examine and approve Verification Issue Green Passport OPERATION Maintain Periodic Audits SCRAPPING Scrapping Plan Ship Inventory NEW CONSTRUCTION Implementation

12. Newbuilding Procedure • Pre contract discussion • Contract for LR Green Passport with excluded material (request for services) • Survey / audit of suppliers, materials and yard • Review of documentation and appraisal of Green Passport • Issue Green Passport on Delivery • Maintain by annual audit/survey

13. Existing Ship Procedure • Owner compiles and submits Green Passport • Green passport appraised with comments as necessary • Onboard survey and verification • Issue Green Passport • Maintain by annual audit/survey

14. The Green Passport

15. The Green Passport • Statement of Fact that LR have verified contents to be in accordance with the provisions of the IMO guidelines. • Harmonised with other statutory/class certificates.

16. Through Life Benefits • Provision of structured System to Properly Control hazardous Materials at new build & through life • Promotes better hazard management & long term liability planning. • Proper certification and reporting ability to manage liability for hazardous materials • By identifying hazards, enhances onboard safety. • Awareness to changing price structure re: end of life asset. • Promotes better environmental awareness & planning. • Enhanced reputation • ISO 14001 – measurable and achievable objectives.

17. Key Points • The Green Passport: • Is not difficult to compile; it records hazards rather than prohibits them. • Approval is a simple extension of surveyors normal duties. • Issued at new building is inherently more accurate than that issued for an existing ship. • Is designed to aid scrapping & help protect workers and the environment with significant through life benefits: • Safety • Environmental Management • Management of Liability

18. Recycling Facility Standards • ILO; ‘Safety and Health in Ship Breaking, Guidelines for Asian Countries and Turkey’ • Basel Convention; ‘Technical Guidelines for the Environmentally Sound Management of the Full and Partial Dismantling of Ships’. • Any other Internationally Recognised standards • Familiarity to Shipowner = IMO / ILO • List of materials in Green Passport = List of materials Recycling Facility Licensed to handle

19. The Future • Tripartite IMO / ILO / BC Meetings (2nd in DEC 2005) • Mandatory Timetable (IMO circa. 2008-2009) • Green Passport • Licensed Scrapping Facilities – and associated guidance • Four stakeholders • Ready for scrap agreement • Inevitable price structure shift

20. design build scrap operate Through-life solutions