Baltic Marine Environment Protection Commission

Sub-group on Green Technology and Alternative Fuels for Shipping Gothenburg, Sweden, 5 September 2017

GREEN TEAM 1-2017

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Outcome of the First Meeting of the HELCOM MARITIME Sub-group on

Green Technology and Alternative Fuels for Shipping (GREEN TEAM)

Introduction

0.1 In accordance with the decision by HELCOM 38-2017 (Outcome paragraphs 4.45-4.46), the First Meeting of the HELCOM MARITIME Sub-group on Green Technology and Alternative Fuels for Shipping (GREEN TEAM) was held on 5 September 2017 on Donsö Island in Gothenburg, Sweden. The Meeting was opened at 10:00 and closed at 14:15 the same day.

0.2 The Meeting was attended by representatives of all HELCOM Contracting Parties except Latvia, and HELCOM Observers BPO, CLIA, CPMR, ECSA, ESPO, CBSS as well as representatives from a number of other entities. The list of registered participants is contained in Annex 1.

0.3 Ms. Anna Petersson, Swedish Transport Agency and Ms. Anita Mäkinen, Finnish Transport Safety Agency, acted as Co-Chairs of the Meeting.

0.4 Mr. Hermanni Backer, HELCOM Professional Secretary, acted as Secretary of the Meeting.

0.5 The Meeting was welcomed by the Co-Chairs and the participants introduced themselves with a short round of introductions.

Agenda Item 1 Adoption of the Agenda

Documents: 1-1, 1-2

1.1 The Meeting adopted the Agenda of the Meeting as contained in document 1-1.

Agenda Item 2 Context, GREEN TEAM Terms of Reference and Work Plan

Documents: 2-1

2.1 The Meeting recalled the joint NECA proposal by all HELCOM countries to IMO and the subsequent amendments to MARPOL Annex VI to establish the Baltic Sea NECA by 2021 and the final adoption of the Baltic Sea NECA at IMO MEPC 71 meeting in July 2017.

2.2 The Meeting took note of the information on the outcome of the UN Ocean Conference 2017, convened by Sweden and Fiji in New York in June 2017, and that the designation and regional follow-up of the Baltic Sea NECA status was submitted as a HELCOM voluntary commitment (Ocean Action 15614) and that a related action to support the HELCOM GREEN TEAM was submitted by ZVT.

2.3 The Meeting recalled that the HELCOM sub-group in the framework of the “Green Technology and Alternative Fuels Platform for Shipping” was established by HELCOM HOD 47-2014 (Outcome paragraph 3.6) and reported to UN Oceans as the key feature of this follow-up.

2.4 The Meeting recalled that a revised Terms of Reference and Work Plan of HELCOM GREEN TEAM until January 2018 was adopted by HELCOM 38-2017 (document 2-1) to direct the work but that the task of this meeting would be to provide the first step in updating and extending the work plan for the period 2018-2019.

Outcome of GREEN TEAM 1-2017

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2.5 The Meeting took note that Finland arranged a side event at the UN Ocean Conference with a title “Collaboration in Public Private Partnership for a Sustainable Maritime Future” demonstrating the importance of exploring the potential of public-private partnerships in establishing both solutions to marine environmental problems and business opportunities. In the light of discussions, especially reaching the SDG14 as well as related goals and targets for sustainable shipping can be facilitated by public-private partnerships.

2.6 The Meeting took note that due attention should be paid to coordinate with other relevant activities such as the European Sustainable Shipping Forum (ESSF) and that the potential of GREEN TEAM to engage with Russian contacts and stakeholders should be fully utilised.

Agenda Item 3 Toward effective incentives

Documents: 3-1

3.1 The Meeting recalled HELCOM Recommendation 28E/13 “Introducing economic incentives as a complement to existing regulations to reduce emissions from ships” (document 3-1) which was adopted in 2007 and includes specifications on NOx and SOx emission-related economic incentives.

3.2 The Meeting took note of a presentation on the current state of play on effective incentives by Helén Jansson, ZVT (Presentation 1), taking note that in the investment (CAPEX) phase, grants as well as guarantees / risk sharing mechanisms seem to be the key issues and that Environmental Ship Indexes, reduced fairway dues, Early movers rebate and tax reductions are among the identified topics in the operational (OPEX) phase.

3.3 The Meeting provided comments on the topic of economic incentives and highlighted that maritime transport industry, ships and ports, does not cover all modes of transport and the capacity of the industry to renew and “green” itself is depending on the overall ability to thrive in the transport business and in competition with land-based transport. Due to the relatively low cost of certain devices (BWM treatment plans and scrubbers) commercial banks are rarely interested to be involved in their purchase.

3.4 The Meeting further took note of the comment from Anita Mäkinen (Finland, Trafi) that in countries such as Finland, which is often considered to be an island, road traffic is not available as an option to replace international ship transportation.

3.5 The Meeting took note of the comment by Peter Crawley (DG RESEARCH) that EU and other research and project funding (CEF/TEN-T, Horizon 2020, BONUS, Regional Structural and Investment Funds) are available to facilitate the progress to more sustainable maritime technology. For Horizon 2020 the work programme with research funding opportunities 2018-20 is expected to be published in November 2017.

3.6 The Meeting concluded that further work on effective incentives is needed and recognized the need for a revision of the guidelines in HELCOM Recommendation 28E/13 as the Recommendation was adopted in 2007, which was before many of the recent regulatory developments.

Agenda Item 4 Next steps of GREEN TEAM

Documents:

4.1 The Meeting recalled that the ZVT started out in Sweden to solve very concrete specific challenges, for example, lack of regulations on methanol driven vessels, an issue which Sweden has brought up and addressed in the IMO process and will soon end up as amended international regulations (IGF Code).

4.2 The Meeting stressed that the region needs platforms to share clean shipping challenges and solutions across public and private sectors as well as national borders (including also EU-Russia border).

Outcome of GREEN TEAM 1-2017

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4.3 The Meeting agreed to recommend to HELCOM MARITIME that the GREEN TEAM work plan should be extended and updated to cover the period 2018-19.

4.4 The Meeting provided input to the updating of the GREEN TEAM work plan 2018-19 as follows:

Regional cooperation on clean shipping including identified issues can be fed to EU research initiatives and programmes.

Providing efficient reporting on identified challenges and solutions, via for example the ZVT approach, could be an efficient way to inform these research funding processes on priority issues.

The current work plan is very focused on air emissions but also e.g. sewage treatment systems and scrubbers are a type of green technology which needs some consideration.

The ambition level of the work plan should reflect the role of the Baltic Sea as a world leading region.

The guidelines attached to Recommendation 28E/13 should be updated as they were concluded in 2007.

Common standards (e.g. various issues related to alternative fuels) could be considered taking into account the ongoing work in other processes including the European Sustainable Shipping Forum.

As there is a lot of ongoing work on indexes the priority should be on supporting existing indexes and their forums.

4.5 The Meeting agreed to recommend to HELCOM MARITIME that Recommendation 28E/13 should be revised and that clear common standards related to LNG bunkering should be developed at a suitable forum, taking into account the ongoing work in other processes including the European Sustainable Shipping Forum.

4.6 The Meeting took note that in case the HELCOM Maritime meeting (10-12 October 2017) decides in favour of revision of HELCOM Recommendation 28E/13 “Introducing economic incentives as a complement to existing regulations to reduce emissions from ships” the Swedish Maritime Administration (SMA) urges participants to send comments and proposals to SMA by E-mail sjofartsverket@sjofartsverket.se with heading “Input to HELCOM Recommendation 28E/13 on economic incentives”.

4.7 The Meeting welcomed the information that the port of Gothenburg takes an active role in the work regarding indices, including both the ESI and CSI.

4.8 The Meeting welcomed that the Finnish Maritime Cluster as a part of ZVT confirmed its willingness to lead the work on reporting.

4.9 The Meeting welcomed that the Swedish Maritime Administration is willing to lead the work to revise the guidelines in Recommendation 28E/13 and that Finland and the Finnish Maritime Cluster as a part of ZVT will provide background material of the existing incentives in the Baltic Sea region to support the revision of the guidelines.

4.10 The Meeting agreed that further comments to be used in updating the GREEN TEAM work plan for the period 2018-19 should be provided by 11 September 2017 (Hermanni.backer@helcom.fi).

4.11 The Meeting welcomed that based on the discussions at the Meeting as well as comments received by correspondence, the Co-Chairs should provide the draft updated work plan of GREEN TEAM for the period 2018-19, including concrete priority tasks and designated leads, for the consideration of HELCOM MARITIME 17-2017 (10-12 October 2017).

4.12 The Meeting welcomed the invitation by Finland to host a GREEN TEAM meeting in 2018, further information to be provided at a later stage.

4.13 The Meeting welcomed the invitation from DSM to host a GREEEN TEAM meeting in connection with DSM19, 3-4 September 2019.

Outcome of GREEN TEAM 1-2017

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Agenda Item 5 Any other business

Documents:

5.1 The Meeting took note of the brochure on the upcoming HELCOM Maritime Assessment 2017.

5.2 The Meeting took note that the HELCOM Ministerial Meeting to be held in Brussels on 6 March 2018 is one of the upcoming milestones which could be used to advance sustainable shipping related issues if seen as important by the HELCOM Contracting Parties.

5.3 The Meeting thanked the Donsö Shipping Meet 2017 as well as Swedish ZVT staff Helén Jansson and Carl Carlsson for the outstanding facilities and arrangements for the first meeting of HELCOM GREEN TEAM.

5.4 The Meeting took note that a working group on alternative fuels has been working within the ESSF framework, which could be supported by GREEN TEAM.

5.5 The Meeting took note that public consultations concerning a successor program to Horizon 2020 will start shortly and GREEN TEAM could provide valuable input in this respect, also in coordination with the "Waterborne Technology Platform" whose secretariat is managed by "Sea Europe".

Agenda Item 6 Outcome of the Meeting

Documents:

6.1 The Meeting commented the draft Outcome of HELCOM GREEN TEAM 1-2017 containing the main decisions of the Meeting by 11 September 2017. The final outcome will be completed by the Co-Chairs and the Secretariat based on the comments received and the final file will be circulated to the participants by email. The Outcome of the Meeting will be made available in the HELCOM Meeting Portal, together with the documents considered and presentations given during the Meeting.

Outcome of GREEN TEAM 1-2017

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Annex 1 List of Participants

Representing /Country Name Organization

BPO Petra König Copenhagen Malmö Ports AB

CBSS Daria Akhutina Council of the Baltic Sea States

CBSS Anthony Jay Council of the Baltic Sea States

CLIA Paul Altena Cruise Lines International Association Europe

CPMR Baltic Sea Commission Maritime Working Group

Jessica Hjerpe Olausson VGR county council

Denmark Charlotte Vinding MDC, Denmark

Denmark Ditte Folke Kikkert Henriksen DMA, EUSBSR Policy Area on Clean Shipping

Denmark Ditte Kristensen Danish Environmental Protection Agency

Denmark Ivan S. Larsen Fayard AS

ECSA Fredrik Larsson Swedish Shipowners’ Association

ECSA Ludovic Laffineur European Community Shipowners’ Association

ESPO Annaleena Mäkilä Finnish Port Association

Estonia Dan Heering TTU - Estonian Shipowners' Association

Estonia Janis Väät Port of Tallinn

European Union Peter Crawley European Commission DG Research

Finland Anita Mäkinen Finnish Transport Safety Agency

Finland Eija Kanto Wega - ZVT

Finland Janne Tamminen Rapporteur Maritime Issues BSSSC Board

Finland Jukka Salminen Aker Arctic Technology Inc.

Finland Laura Sarlin Ministry of Transport and Communications

Finland Maija Sirola Bonus

Finland Markus Helavuori Ministry of Transport and Communications

Germany Björn Oriwohl Federal Ministry of Transport and Digital Structure

Germany Gabriele Kötschau Baltic Sea Forum

Germany Holger Steinbock BG Verkehr, Ship Safety Division

Germany Lisa-Maria Putz Baltic Sea Forum

HELCOM Alexey Bakhtov Helsinki Commission

HELCOM Florent Nicolas Helsinki Commission

HELCOM Hermanni Backer Helsinki Commission

HELCOM Manuel Frias Helsinki Commission

Lithuania Andrius Sutnikas Klaipeda Science and Technology Park

Lithuania Andrius Uldukis DNVGL

Lithuania Ernestas Mickus Minister counselor - Lithuanian Embassy

Lithuania Gintautas Kutka Lithuenia Shipowners’ Association

Lithuania Nerijus Strazdauskas Klaipedus Nafta

Luxembourg Francois Gaudet EIB

Norway Tom O Kleppesto Shipping & Offshore Network

Poland Agata Święcka Ministry of Maritime Economy and Inland Navigation

Poland Maria Justyna Kubacka Maritime Institute in Gdansk

Poland Tomasz Grzybkowski Political and Economic Section, Embassy of Poland

Russia Viktoria Marich Maritime Academy, St. Petersburg

Russia Nadeszhda Pronina Russian Federation Consulate, Gothenburg

Russia Vadim Barabanov Russian Federation Consulate, Gothenburg

Sweden Alf Brodin BrodinInfo AB

Sweden Anders Höfnell Lloyd's Register Group

Sweden Anna Petersson Swedish Transport Agency

Sweden Carl Carlsson Swedish Shipowners’ Association - ZVT

Sweden Claes Berglund Stena

Sweden Edvard Molitor Port of Gothenburg

Sweden Egle Obcarskaite Sister Consulting - ZVT

Sweden Erik Fridell IVL

Sweden Fredrik Redelius Redelius Productions - ZVT

Sweden Helén Jansson ABYUP - ZVT

Sweden Igne Stalmokaite Södertörn University, Sweden

Sweden Linda Friberg Lifhof - ZVT

Sweden Maria Gustafsson Miku - ZVT

Sweden Mattias Rust Ministry of Enterprise and Innovation, Government of Sweden

Sweden Nicklas Berndtsson Swedish Transport Agency

Sweden Reidar Grundström Swedish Maritime Administration

Sweden Lena Granholm Chalmers