Development of a Financing Model for oily and greasy ship waste Hans Berger via donau – Austrian Waterway Company Budapest,

Content of the presentation Introduction Summary of the current situation of ship waste management A Financing Model for oily and greasy ship waste –Basic principles –Components –The „Rhine System“ –Possibilities for the Danube region –Results of the WANDA project Implementation aspects

Introduction Aim: Development of a „financing model for oily and greasy ship waste“  Requirements according to international and national legislation, policies and strategies (e.g. Waste Framework Directive, DC recommendations)  Socio-economic conditions of the Danube Region  Needs of IWT operators  Connection with River Information Services (RIS)

Basic idea The Danube is an international waterway! Hence, ship waste disposal services shall be available for all vessels, regardless of their flag to similiar conditions! Usage of mobile services in Upper Danube Region by vessels of different flags (via donau, 2012)

Summary of current situation of SWMC CCNR Waste Treaty (CDNI) Danube Commission Recommendations Different national systems ISRBC MARPOL 1. Different systems used for Waste disposal Re-financing of the costs 2. High number of unknown variables (waste potential, costs, multitude of different users & interests,…)

A Financing Model (FM) has to 1.… cover the costs for waste disposal 2.… be applicable on international level 3.… be compatible with the Rhine system 4.…be simple & cheap to implement Basic Principles for a Financing Model Indirect Payment Waste Prevention Polluter Pays Principle

Components of the Financing Model 1.Costs Services of waste management companies: 125 €/m³ (average val.) Administration costs: 10 % Costs for monitoring, controlling & enforcement: not available 2.Revenues Payment of IWT Operators: 8 payment scenarios Contributions of the participating states: recommended for stepwise implementation 3. International balance for costs & revenues

CDNI  Provisions for all types of ship waste,  contains a FM for oily and greasy ship waste  6 countries involved  Waste disposal is possible in every country for every vessel  Disposal fee is paid in advance when bunkering gas oil = indirect payment  International balance payments are carried out between countries © Hans van der Werf, CCNR

Payment scenarios for the Danube Discussion of 8 payment scenarios, three were investigated in more detail Levy on gasoil 11 €/1000 l gasoil; + used in the Rhine region Evasive reactions of vessels possible, hence higher risk for successful implementation; changes in CDNI possible; high administration costs expected; Levy on port dues 15 €/ port entry ; costs could range from 0 to 5500 €/vessel; no. of port entries not related to waste generation; complex administration, monitoring and controlling, market interference possible; Vignette system + Simple, low administration costs, support by RIS possible Vessel registration fee Vessels could avoid payment by registration outside the Danube region;

Costs & Revenues of a vignette system ComponentUnitAmount Quantity of bilge waterm³m³ 15,000 Price per m ³ Euro125 Total costs for the collection of bilge waterEuro1,875,000 Motorised vesselsNo.1400 Average tariff per vignette based on bilge water only Euro1,339 Costs for the collection of other oily waste10%187,500 Total costs for the collection of all oily waste 2,062,500 Average tariff per vignette including other wasteEuro1,473 (NEA, 2011)

Gasoil system 11 €/ 1000 litres of bunkered gas oil Motorized Cargo Vessel 1300 kW + Lighter, Passau-Vidin- Passau: 43 t gasoil = 50.6 m³, 200 engine hours, 250 liters/hour= m³/h* 11 € = 2.75 €/h 200 h*2.75 €/h => 550 € for one trip Sources for calculations: Sava Commission, Creating Project mod. - via donau

Break Even Point 1st journey Between the second and the third journey, the vignette system becomes cheaper for the vessel than the gas oil system. 2nd journey3rd journey

Key aspects for implementation Support on international level – EU – and national level will be necessary Establishment of a common, legally binding treaty for harmonised ship waste management along the Danube Practical implementation – pilot tests - & further development of concepts Developing of infrastructure for waste disposal Appointment of organisational and administrative bodies on international and national level CO - WANDA

Follow Up Activities Submission of CO-WANDA (Nov 2011) to the SEE program Danube Commission as observer Financing Model plays an important part in this proposal –Pilot Actions for testing the vignette system (AT, SK, HU, HR, RO, BG) –Connection to RIS (HU, RS, RO) –Further conceptual development (including other waste types, a computer software, international balance, lessons learned and compatibility with the Rhine Region, …) Incorporation into an „Int´l Treaty“

Summary Financing waste disposal services: crucial for sustainable development Danube: a vignette system is recommended (external experts) –implementation will require funding and support of national states & international funds Compatibility to neighboring systems A joint approach of Danube Riparian countries  for developing a legal framework Further development of the FM and accompanying tasks  CO-WANDA

Thank you for your attention! Hans Berger via donau – Austrian Waterway Company Budapest,