Various environmental regulation
Ship-related issues should not be addressed by a single nation, but on an international basis because vessels move all over the world. The United Nations Framework Convention on Climate Change directs the International Maritime Organization (IMO) to study measures to reduce GHG emissions in international ocean shipping. Currently, the IMO studies, adopts, and issues various international conventions and regulations.
The MOL Group continues its company-wide efforts to ensure compliance with a wide variety of environmental regulations.
Regulations to Prevent Global Warming
|EEDI||Phase 0||Phase 1||Phase 2||Phase 3|
In 2013, conventions related to energy efficiency (EEDI and SEEMP) were adopted as measures to reduce GHG emissions from international ocean shipping.
- Energy Efficiency Design Index. It is required that CO2 emissions in theory conform to the regulations at the design stage of a newbuilding vessel.Target of reduction rate in each phase: Phase 0 = 0; Phase 1 = 10%; Phase 2 = 20%.
- Ship Energy Efficiency Management Plan. Selection of an operational method for each vessel to improve energy efficiency, documentation of the action plan, and adoption of method aboard the vessel are required. SEEMP targets both newbuilding vessels and existing vessels.
In addition, IMO plans adoption of DCS to further reduce GHG emissions.
- Data Collection System. The system is intended to report fuel consumption data from ships to the IMO, which will analyze it and set strategies toward reduction of GHG emissions, including introduction of market based measures.
Regulations to Prevent Air Pollution
|General sea area||Sulfur content 3.5%||Sulfur content 0.5%|
|ECA||Sulfur content 1.0%||Sulfur content 0.1%|
|General sea area||Tier Ⅱ regulation|
|ECA||Tier Ⅱ regulation||Tier Ⅲ regulation|
- SOx emissions Regulations
- Sulfur content in fuel oil is controlled to reduce SOx in exhaust emissions. From 2015, the ratio level in the Emission Control Areas (ECAs(*)) was reduced to 0.1% or less. In October 2016, the IMO decided to reduce sulfur content in fuel oil to 0.5% or less even in general sea areas.
- NOx emissions Regulations
- NOx in exhaust gas from engines is controlled in a step-by-step manner. Tier I regulates emission levels by rated engine rpm, targeting vessels built between 2000 and 2010. Tier II requires vessels built in 2011 or later to reduce a further 15.5-21.8% from the Tier I level. In the ECAs(*), Tier III applies to vessels built in 2016 or later, requiring reduction of 80% from the Tier I level.
(*) ECA-designated sea areas:
(1) North America Coast – within 200 nautical miles (SOx/NOx), (2) United States Caribbean Sea (SOx/NOx), and (3) Baltic Sea and North Sea (currently SOx only. SOx/NOx in 2021 and later.)
Regulations to Protect the Marine Environment
|General sea area||Adopted in 2004:
yet to take effect
|Ship Recycling Convention||Adopted in 2009:
yet to take effect, effective year undetermined
|Convention on Biofouling on Hulls||Guidelines adopted in 2011|
- Ballast Water
- It aims to prevent cross-border transfer of foreign marine organisms through ballast water of vessels. It was adopted in 2004 and is slated to go into effect in September 2017. Vessels are mandated to install a ballast water treatment system by the stipulated deadline, within seven years from the effective date at the longest.
- USCG Ballast Water
- The United States Coast Guard regulations took effect in 2012. They are almost the same in content as the Ballast Water Management Convention; they require a unique type of approval for ballast water treatment systems. From 2016, all vessels calling at U.S. ports are required in principle to install ballast water treatment system at the first docking.
- Ship Recycling Convention
- It aims to prevent workplace accidents and environmental pollution in ship recycling. It was adopted in 2009, and will be issued 24 months after the requirements are satisfied. It sets standards for ship recycling facilities and recycling procedures, and requires ships to create, maintain and update an inventory list of onboard hazardous substances.
- Convention on
Biofouling on Hulls
- As marine organisms attached to the bottom of ships and crossing national borders have emerged as an environmental issue, IMO is discussing ways to address it. The "Guidelines for the Control and Management of Ships' Biofouling to Minimize the Transfer of Invasive Aquatic Species" was adopted in 2011. After the review period (five years), it may become a convention later.
Active action against Environmental regulation
Viewing its response to environmental regulations as a business opportunity and a strategy for differentiation, the MOL Group proactively develops and adopts advanced technologies that reduce the environmental impact of our business and set the stage for real solutions to global environmental issues.
|Environmental Impact of Business Activities||Environmental Initiatives||Ship Construction||Cargo Transport||Scrapping|
|Global Warming||Measures to reduce CO2 emissions||
|Air Pollution||Measures to reduce NOx emissions||
|Measures to reduce SOx emissions||
|Measures to reduce particulate matter (soot and dust) emissions||
|Marine Environmental Pollution||Initiatives on marine environmental conservation||
||Proper treatment of waste, waste oil, and bilge||Initiatives on ship recycling|
|Initiatives on biodiversity||