November 2012

Chinese Pollution Regulations - Updated Lists of SPROs, Agents and Consortia

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

Degerli Müsterimiz,

Uluslararasi Grup Kluplerinden London Steamship P&I Klubu, Çin Halk Cumhuriyetinde bulunan SPRO (Ship Pollution Response Organisations) yetkili acentalarinin güncel bir listesini yayinlamistir. Konu ile ilgili detaylar, asagida ve ekte yer almaktadir.

Chinese Pollution Regulations – Updated Lists of SPROs, Agents and Consortia

Members will be aware from the International Group FAQs on Chinese Pollution Regulations that Owners will need to contract with a Ship Pollution Response Organisation (SPRO) for their pollution response in a particular port in China. Members will also recall that SPROs based in a particular port may form an alliance with SPROs in other ports to create a consortium that will assist Members in the various different ports that the consortium covers. When contracting with SPROs and/or Consortia, there are various companies that offer the service of agent for these purposes. Please see the latest International Group FAQs (click here) for further details on SPROs, Consortia and Agents.

The latest translated list of SPROs, Consortia and Agents as of 30 October 2012 (attached to this Alert), includes all recent updates, which are as follows:-

A. SPROs

1. There are two new Level one SPROs located in Yantai - Yantai Huahai Ocean Environmental Protection Co Ltd and Yantai Hongkun Environmental Protection Engineering Co Ltd - which are highlighted in green in the list.

2. Shanghai Ronghua Shipping Service Co Ltd is also highlighted in yellow as it has been approved and elevated to a Level three SPRO from Level four.

3. Two Level three SPROs have been added - Shanghai Anhao Shipping Service Co Ltd and Shanghai Tenghua Shipping Service Co Ltd - which are highlighted in yellow.

B. Agents

1. A new agent, Hebei Haichang Ship Technical Service Co. Ltd, has been approved and is highlighted in yellow.

C. Consortia

1. Three consortia, Lixin Oil Spill Emergency Response Chain, Greensea Shunshijie Pollution Response Service and Chinese Ship Pollution Response, have also been added to the list of consortia and are highlighted in yellow.

2. There has been a change in the OSRO for Longshan Marine Pollution consortium (the first in the consortia spreadsheet) to Guangdong Longshan. The previous OSRO, Guangzhou Longshan, is now an ordinary SPRO in the consortium. This is highlighted in green.

3. The additional SPROs to the Liwanjia Marine Oil Spill Protection and Emergency Treatment and the Hisincere Panocean Ship Pollution Response Service Consortia are highlighted in yellow.

Best regards

The News Alerts Team

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Chinese Pollution Regulations - Updated Lists of SPROs, Agents and Consortia

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

lists of SPRO Consortia Agent 30 October 2012.xls

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.