Varelidis the developments in the eu on ship recycling regulation

The developments in the EU on ship recycling Regula8on

Petros Varelidis Dr Chemical Engineer Policy Advisor of the Minister of Environment, Energy & Climate Change Greece

The Interna*onal Conference on Ship Recycling, World Mari*me University, 7-­‐9 April, Malmö

Cion proposal -­‐ Objec8ve safe and environmentally sound recycling of EU ships

• Underlying considera*ons: 1. The current legal regime, i.e. the Waste Shipment Regula*on (Basel Conven*on + the ‘Ban Amendment’) that prohibits EU ship dismantling outside an OECD country is circumvented and therefore is ineffec*ve.

2. Encourage fast ra*fica*on of HKC which provides an effec*ve framework 3. Sustainable ship recycling capacity is already available and will be further developed, with the right incen*ves.

Basic considera8ons • Poli*cal pressure from NGOs • Not enough capacity in OECD countries • The provisions of the HKC is the basis but HKC not in force • Influences from the Basel Conven*on • Effort is made to ensure an equivalent level of control between the 2 Conven*ons • EU legal acquis on environment • Shipping regula*ons

Legal structure • Legal basis: Ar*cle 192(1) of the Treaty • Legal form: Regula*on, i.e. directly applicable • EU ships which fall within the scope of the HKC, covers the whole life cycle of ships, implements some of the requirements of the HKC, obliges EU ships to go to some pre-­‐authorized “good” recycling facili*es and includes addi*onal elements, more stringent environmental provisions, and stricter penal*es.

Cion Proposal – key elements (I) • Scope: EU ships as per HKC. Ships covered by the new Regula*on will no longer be covered by WSR • Prohibi*on of certain hazardous materials • Inventory of hazardous materials periodically updated. New ships – immediately, exis*ng ships in 5 years unless they are sent for dismantling earlier; • Periodic surveys & cer*ficates • Contract between shipowner and ship recycling facility, take back if inventory is not correct

Cion Proposal – key elements (II) • Requirements for ship recycling facili*es. Some addi*onal (to the HKC) requirements • Beaching: Yes or No? • EU ships allowed to be recycled only in pre-­‐approved (by Cion) ship recycling facili*es (worldwide) included in an EU List for 5 years. Decision in 3 years • Non-­‐EU facili*es to apply and supply suppor*ng evidence. Site inspec*ons by Cion • MS may allow recycling in non OECD facili*es if they comply with the requirements (transi*onal period)

Cion Proposal – key elements (III) • Analy*cal list of viola*ons • Minimum penalty for recycling in an unauthorized facility correspond at least to the price paid for the ship • Penalty to last and/or penul*mate shipowner, if the ship is recycled in an approved facility within 6 months aler sale • Request for ac*on and Access to jus*ce • Review clause in 2 years from entry into force of HKC • Annex I: List for the Inventory • Annexes II – VI: Forms HKC

Basic considera8ons of Council approach • Alignment with HKC • Streamlining the text with shipping regula*ons and UNCLOS • Avoid re-­‐flagging – establish a level playing field • Prac*cal considera*ons, enforceability • Legality • Completeness • Poli*cal issues • Common sense

Council text (I) • Explicit reference in Art.1 on the objec*ve of facilita*ng the early ra*fica*on of the HKC • Alignment of the defini*ons with HKC • New defini*ons, mostly coming from the Waste Framework Direc*ve • Separa*on of defini*ons. The (new) waste defini*ons refer only to the waste management that occurs downstream to the ship recycling facility opera*ons • Widening of the scope -­‐ inclusion of non EU ships

Council text (II) • Inventory as per Appendix 1 & 2 of HKC, verified by ROs, amended only by co-­‐decision • Different obliga*ons for the Inventory for new and exis*ng ships as per HKC • Reference to IMO guideline • Dele*on of the contract • Alignment of «technical» provisions with HKC • Replacement of the take back provision with more general obliga*on of retaining responsibility • Inclusion of inspec*on provisions for EU ships equivalent to Port state Control Direc*ve

Council text (III) • Non EU ships: Inventory (updated when necessary) & statement of compliance • Easier requirements for recycling yards, closer to the HKC, ship recycling facility plan, reference to relevant IMO, ILO & Basel guidelines • Dele*on of the transi*onal period where MS may authorise the ship recycling in non OECD facili*es • Dele*on of the access to jus*ce and request for ac*on provisions

Council text (IV) • Dras*c simplifica*on of sanc*ons • Dele*on of minimum penal*es and penal*es to the last and/or the penul*mate shipowner • Review clause 1,5 year prior to entry into force of the HKC • Review clause in case the Ban Amendment is adopted in Basel Conven*on

Council text (V) • Inclusion of applica*on date a) based on sufficient recycling capacity as per HKC or b) certain *me period (not sooner than 2 years, not later than 5 years) • Applica*on date for recycling yards: 1 year • Annex I is adjusted to the EU acquis • Dele*on of most of the Annexes – Implemen*ng acts (MS don’t trust the Commission)

EP proposals -­‐ main problems (I) • Ships covered by the new Regula*on unclear if they are excluded (and to what extent) from WSR • Different deadlines for the establishment of the Inventory based on the age of the ship • SRP for all ships > 20 years • More stringent condi*ons and procedures compared to HKC and Cion proposal • Contract • Funding mechanism (e.g. recycling levy for all ships calling at EU ports

EP proposals – main problems (II) • Transit states • Explicit approval of SRP by the facility administra*on • Much stricter requirements for recycling yards compared to the HKC -­‐ Total ban of beaching • Retrospec*ve penal*es to shipowners for 2 years • Applica*on date

Contact details: pvarelidis@yahoo.com, varelidisp@eka.ypeka.gr

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