Cargotec Investor Presentation

Environmental regulations will only accelerate going forward Shipping decarbonisation high on the agenda IMO: Baltic Sea ECA in effect 1.0% ECA Sulphur Limit 3.5% Global Sulphur Limit Lower EEDI reference line (Phase 1) Ratification of Ballast Water Management Convention (BWMC) BWMC implementation for majority of fleet US Global NOx Tier I Limit Global NOx Tier II Limit Caribbean ECA in effect EU MRV reporting period begins in EU ports EU MRV certification in effect Lower EEDI ref. line (Phase 2) Lower EEDI ref. line (Phase 3)* *) will become in force earlier, already 2023 50% GHG Reduction Target Timeline Key ECAs SOx NOx GHG / EEDI Green Recycling Ballast Water 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Current Position 2020 2021 2022 2023 2024 2025 2030 2050 North Sea ECA in effect North American ECA in effect 0.1% ECA Sulphur limit BWMC enters into force EU SRR enters into force North Sea & Baltic Sea NOx ECAS in effect EEDI for newbuildings formally adopted EEDI & SEEMP Mandatory (Phase 0) ECA NOx Tier III emission limit takes effect* IMO DCS reporting period begins 0.5% Global Sulphur Limit, carriage ban from March 40% CO2 Intensity Reduction Target European Union Green Deal - shipping to be included in the EU ETS in 2022. " In September 2020, the European Parliament voted for the inclusion of greenhouse gas (GHG) emissions from ships over 5,000 gross tonnes in the emissions trading system (EU ETS) by 1 January 2022. It also wants firms to cut ships' annual average CO2 emissions by more than 40% by 2030. It also voted to include methane emissions in the monitoring and reporting obligation. The commission is set to announce a revision of the EU's GHG emissions reduction target for 2030 upwards from 40% to 55%. It also seeks to include "at least" intra-EU maritime transport in the EU ETS. It called for 50% of revenues from the sale of EU ETS allowances to the maritime sector to be used for an Ocean Fund, established for the period 2022-2030 to improve the energy efficiency of ships and support investment in decarbonisation. An additional amendment adopted would oblige the commission to propose by 31 December 2022 "additional requirements to reduce GHG emissions other than CO2, as well as to reduce air pollutants and the discharge of wastewater, including from scrubbers, into open waters from ships". And the review should also "consider" an extension of the scope of the regulation to include ships of 400-5,000 gross tonnage. CARGOTEC Source: Clarkson Research & European Union, September 2020 Investor presentation April 2021 99

View entire presentation