Brunzema the eu law making process on ship recycling

The EU law-making process on Ship Recycling Thorsten Brunzema World Maritime University International Conference on Ship Recycling Malmรถ, 08 April 2013

NEED FOR RECYCLING OF SHIPS UNDER EU FLAGS CONTINUES TO BE HIGH Historic and projected scrapping volumes (million LDT per year) 3.0 2.5 2.0 1.5 1.0 0.5

2030

2028

2026

2024

2022

2020

2018

2016

2014

2012

2010

2008

2006

2004

2002

2000

0.0

Source: Annex A, COWI study to support the impact assessment, http://ec.europa.eu/environment/waste/ships//index.htm

Expected capacity needed for EU flagged ships: annually ~1,6 million LDT, with peaks of 2 million LDT

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Source:

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THE CURRENT LEGAL FRAMEWORK CANNOT EFFECTIVELY STOP UNSUSTAINABLE PRACTICE Export of "waste ships" subject to Waste Shipment Regulation: Transport of waste (ships) from the EU only allowed to OECD countries (export ban) – but: The ban is not working.

Two main reasons: 1) Waste ships do not "get transported" anywhere, they "become waste" when the owner so decides, and where the owner so decides; 2) Outside EU, costs lower and scrap steel price higher.

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VAST MAJORITY OF LARGE COMMERCIAL SHIPS IS DISMANTLED OUTSIDE THE OECD Dismantling locations in 2009 (GT) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% China

India

Bangladesh

for non EU flagged ships

Pakistan

Turkey

for EU flagged ships

Others

Unknow n

for all ships

Source: Calculation by DG Environment on the basis of data provided by IHS.

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ASIAN FACILITIES PAY MUCH MORE FOR THE STEEL, EVEN WHEN THEY PERFORM RECYCLING IN LINE WITH THE HONG KONG CONVENTION Price paid for a ship of 20,000 tons (LDT) in 2009 (million dollars)

Source: Based on page 18 and 101 of the impact assessment 6

OBJECTIVES OF THE COMMISSION PROPOSAL Two main objectives: 1. Encourage fast ratification of Hong Kong Convention by EU Member States and relevant non-EU countries 2. Adopt effective rules for sustainable recycling of EU flagged ships without further delay

Underlying considerations: 1. The Hong Kong Convention provides an effective framework, applicable worldwide, for safe and environmentally sound ship recycling; 2. The Hong Kong Convention leaves room for more stringent measures, especially where necessary to not lower current protection levels; 3. Sustainable ship recycling capacity is already available and, with the right incentives, it will be further developed.

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KEY ELEMENTS OF THE COMMISSION PROPOSAL FOR A LIFE-CYCLE-APPROACH ON EU SHIPS 1. Design and construction: Ban of some hazardous materials, and inventory on the others (as in the Hong Kong Convention) 2. Operational phase: Regular surveys, inventory certificate and inspection (as in the HKC) 3. Decision to scrap: Only after final survey and with "ready for recycling" certificate (as in the HKC) 4. Dismantling/recycling: Global, but only in facilities on the "EU list", fulfilling sustainability criteria (following the HKC, but reinforced for safety and against unsustainable beaching) 5. Treatment of waste generated: Sustainable treatment and transfer only to authorised disposal or management facilities (following the HKC) 6. Enforcement: Private contract between owner and recycling facility, minimum penalties even on penultimate owner (more concrete than HKC)

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FIRST VIEWS FROM PARLIAMENT AND COUNCIL

EP ENVI Committee proposals include to: a)Require the inventory also from non-EU ships in EU ports b)Make technical requirements on facilities more strict c)Create financial incentive for sustainable recycling d)Sanction non-compliance as a criminal act EU Council Presidency proposals include to: a)Require the inventory also from non-EU ships in EU ports b)Align technical requirements as much as possible to HKC c)Delete the private contract obligation (Art. 9) d)Leave sanctions/details of enforcement to the EU Member States

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TIMELINES IN THE EU DECISION MAKING PROCESS

• March 2012: Commission proposal • April 2012: Start of Council discussions • November 2012: First draft by EP rapporteur • 26 March 2013: EP ENVI Committee vote • ~17 April 2013: EP plenary vote for negotiation mandate • Summer 2013: Earliest possible end of EU legislative process with adoption of the new Regulation

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Thank you for your attention.

Please find the proposals and further information on: http://ec.europa.eu/environment/waste/ships//index.htm

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