CircularsNews
July 2011

News Alert from the London P&I Club: Somalian Piracy - IMO Guidance on the use of Private Armed Guards

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

Quote

Sayin Yetkili,

Malumlariniz korsan saldirilarinin Aden Korfezi sinirlari disina tasmasi silahli guvenlik firmalari ile calisilmasi egilimini arttirmis durumdadir. Ve yine malumlariniz oldugu uzere sebep olacagi hukuki ve daha onemlisi emniyet acisindan olumsuzluklar goz onunde bulundurularak gerek bayrak devletleri ve gerekse sigorta sirketleri silahli guvenlik firmalari ile calisilmasi hususunda muhtelif yorumlar yapmaktalar.

IMO Deniz Asayis Komitesi de son oturumunda durumu tum boyutlari ile degerlendirerek hem siz sayin Armatorlerimiz hem de Bayrak Devletleri icin asagida sunulan linklerde bulabileceginiz bir rehber yayinlamistir. Sizler icin yayinlanan rehber daha ziyade risk degerlendirmesi ve silahli guvenlik firmasi secilirken goz onunde bulundurulmasi tavsiye edilen parametler ve yine gemide olduklari sure icerisinde dikkat edilmesi gereken hususlara ayrintili olarak yer vermektedir. Konu rehber ayni zamanda gerek silahli guvenlik firmasinin sahip olmasi gereken sigorta teminati ve kapsami ve gerekse silahli guvenlik firmasi ile calismanin sigorta teminatiniza muhtemel etkileri konularini da icermektedir.

unquote

From: NewsAlerts [mailto:NewsAlerts@londonpandi.com]
Sent: 30 Haziran 2011 17:24
To: NewsAlerts
Subject: News Alert from the London P&I Club: Somalian Piracy - IMO Guidance on the use of Private Armed Guards

SOMALIAN PIRACY - IMO GUIDANCE ON THE USE
OF PRIVATE ARMED GUARDS

JUNE 2011

As the reach of pirates operating out of Somalia has spread well beyond the Gulf of Aden and military resources have as a consequence become ever more stretched, the deployment of private guards on ships transiting high risk waters has become more prevalent.  The use of armed private guards is also becoming more common, which in turn is attracting an increasing number of providers of such services.

Industry opinion over the use of armed private guards remains divided but where their use is contemplated, an array of legal and practical considerations arises.  There is a broadly held concern that not all of the providers of armed guards are familiar with the issues, which may result in an increased risk of injury, fines and/or delays.

At the last session of the IMO's Maritime Safety Committee, two interim guidance papers were developed for the employment of private armed guards; one for shipowners (for MSC.1/Circ.1405 click here) and one for flag states (for MSC.1/Circ.1406 click here).  These guidelines are intended to be used in conjunction with the industry’s Best Management Practices for mitigating the risk of Somalian piracy (click here for the third version of the BMP).

The guidelines are due to be reviewed and developed as necessary by an IMO working group on maritime security and piracy that next meets in September.  However, the interim guidance for shipowners, having been developed from a joint industry project, is already a detailed document, extending to the following subjects:

·        Risk Assessments

·        The Selection and Vetting of Private Armed Guard Providers

·        Armed Guard Team Size and Composition

·        Insurance

·        Command and Control

·        Management of Firearms and Ammunition

·        Rules of Engagement

·        Reporting and Recording

Members considering the appointment of private armed guards are recommended to review the IMO’s interim guidance for shipowners.

Best regards

The News Alerts Team

The London P&I Club

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