Environment

Environment

MOL Group Environmental Policy Statement
Philosophy

As one of the world’s leading multi-modal transport groups, the MOL group is committed to protecting the health of our marine/global environment and therefore promotes and supports the following policies.

Policy
  • Protect all aspects of the marine/global environment and foster safe operation;
  • Comply with all environmental legislation and regulations required by law, and all relevant, further reduce the burden on the environment by setting and achieving even tougher voluntary standards;
  • Periodically review and revise our environmental protection measures on the basis of our framework for setting and reviewing environmental objectives and targets;
  • Conserve energy and materials through recycling and waste reduction programs;
  • Purchase and use environmentally safe goods and materials;
  • Promote the development and use of environmentally safe technology;
  • Educate and encourage group employees to increase their focus on protection of the environment through enhanced publicity efforts, and communicate our Environmental Policy to group employees;
  • Publish our Environmental Policy Statement and disclose our environmental information on a regular basis;
  • Always strive to ensure that our business activities contribute to and adequately support worthy environmental protection activities.

 

Regulations

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. MOL Chemical Tankers continues its company-wide efforts to ensure compliance with a wide variety of environmental regulations.

  2014 2015 2016 2017 2018 2019 2020 2025
EEDI Phase 0 Phase 1 Phase 2 Phase 3
SEEMP Mandatory
DCS   Mandatory

In 2013, conventions related to energy efficiency (EEDI and SEEMP) were adopted as measures to reduce GHG emissions from international ocean shipping.

EEDI

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%.

SEEMP

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.

DCS

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.

  2014 2015 2016 2017 2018 2019 2020
SOx (sulfur oxides) General sea area Sulfur content 3.5% Sulfur content 0.5%
ECA Sulfur content 1.0% Sulfur content 0.1%
NOx (nitrogen oxides) 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.)

  2015 2016 2017 2018 2019 2020
Ballast Water Management Convention General sea area Adopted in 2004: yet to take effect Mandatory
USCG regulations Enforced in 2012 Mandatory
Ship Recycling Convention Adopted in 2009: yet to take effect, effective year undetermined
Convention on Biofouling on Hulls Guidelines adopted in 2011
Ballast Water Management Convention

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 Management Regulations

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.