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Recent ESG-related developments in the maritime sector
By Andre October , partner ; Sheena Dias , partner ; Sharmila Naidoo , senior associate & Lesiba Legodi , associate from Webber Wentzel
New regulations affecting South Africa ’ s maritime sector seek to raise standards relating to the environment , health and safety , and governance .
Environmental , social and governance ( ESG ) principles and reporting are highly relevant to the maritime sector , which faces issues such as emissions of greenhouse gases and other air pollutants , recycling , ecological impacts , business ethics , employee health and safety , as well as accident and safety management .
About 90 % of global trade is transported by sea and the shipping industry accounts for nearly 3 % of the world ' s carbon dioxide ( CO₂ ) emissions . The industry is under immense pressure to become cleaner and greener . Numerous shipping companies and maritime service providers have adopted corporate social responsibility ( CSR ) codes . ESG and CSR allow for : ( i ) the growth of the organisation and an improvement in its reputation ; as well as ( ii ) environmental protection that will save marine species and the future of humankind .
The International Maritime Organisation ( IMO ), as the international governing body for shipping , sets out several regulations to protect the environment , through the International Convention for the Prevention of Pollution from Ships ( MARPOL ), safety of workers through the Safety of Life at Sea Convention ( SOLAS ) and the welfare of shipping professionals through the International Labour Conference-Maritime Labour Convention ( ILO-MLC ).
CSR is not imposed on entities but rather adopted by them . Making it mandatory for maritime organisations to comply with CSR would help the shipping industry to : develop green ships , from building and operation to scrapping ; ensure the welfare of ships ’ crews in terms of safety , security , health and communication ; and go a step further than IMO and other international regulations to ensure crews enjoy basic rights .
BUNKERING AND SHIP-TO-SHIP TRANSFERS CODES OF PRACTICE The South African Maritime Safety Authority ( SAMSA ) has published drafts of the Bunkering Code of Practice and the Ship-to-Ship Code of Practice for Cargo Transfers ( codes ).
In September 2022 , SAMSA published Marine Information Notice 10-22 . This explained that SAMSA , in collaboration with South Africa ' s Department of Transport and National Ports Authority , had updated the codes because of several oil spills along the South African coastline ( specifically in Algoa Bay ) during bunkering activities between
Chris Pagan | Unsplash
About 90 % of global trade is transported by sea and the shipping industry accounts for nearly 3 % of the world ' s carbon dioxide ( CO₂ ) emissions .
2016 and 2019 . As a result , the government had reviewed all policies , procedures and processes for the application , approval , and management of these activities .
The stated purpose of the codes is to ensure that bunkering / STS transfer operations are conducted with zero harm to the marine environment . The code details the requirements for accomplishing safe bunkering / STS transfer operations to support commercial marine activity .
The codes are underpinned by the principles of consistency , fairness , objectivity and timeliness in each application for bunkering / STS transfer approval . SAMSA will ensure that all applications for bunkering licences are dealt with in a transparent manner , within three months from the date that a full and complete submission is made , and that the applicant is advised of the outcome of the application within the stated period . The various role players will cooperate to ensure that bunkering / STS transfer operations are conducted in an environmentally safe and efficient manner . Entities involved in bunkering operations are encouraged to advise SAMSA about challenges and make suggestions to promote safe operations , considering new technologies available and their benefit .
MARINE POLLUTION ( PREVENTION OF POLLUTION FROM SHIPS ) AMENDMENT BILL A further development in the maritime sector is the Marine Pollution ( Prevention of Pollution from Ships ) Amendment Bill ( B5-2022 ) ( MPPPSA bill ).
The MPPPSA bill aims to : amend the Marine Pollution ( Prevention of Pollution from
Ships ) Act , 1986 , to give effect to Annex IV of MARPOL ; to incorporate the 1997 protocol to give effect to Annex VI of MARPOL ; and to provide for related matters .
Annexing MARPOL to the bill means that it will be incorporated into South African law and will have legal force .
In addition , the MPPPSA bill empowers SAMSA to issue technical standards for dealing with marine pollution from ships on such matters as may be prescribed by regulation , which will have the force of law .
The Bill expands on the Minister ' s powers to make regulations to include the following : e . ... To make regulations relating to the prevention of air pollution from ships ; f . relating to the prevention of pollution by sewage from ships ; g . relating to the removal of endocrine disrupting substances from sewage streams before it is treated and released ; h . relating to the permitted types of emission abatement equipment ; i . relating to the requirements for the disposal of waste generated by the mitigation equipment ; j . relating to accredited laboratories eligible to test the fuel samples and the costs ; k . relating to the designation of Emission Control Areas ( ECA ); l . relating to the enforcement of protective measures in particularly sensitive sea areas and other special areas ; and m . on generally any other ancillary or incidental administrative or procedural matters that are necessary for the proper implementation or administration of this Act .’’. CLA
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