Asia/Pacific News
Chinese Port Launches CNY200M Low-Sulfur Incentive Scheme
From next month Shenzhen's local government will spend CNY200 million (U.S.$32.5 million) on cash rebates to shipping companies that voluntarily switch to using low-sulfur bunkers while at berth, South China Morning Post reports.
"We are learning from the experiences in Hong Kong, where companies have volunteered to switch to low-sulphur fuel and the government provides subsidies for extra costs incurred," said Dong Yanze, Director of the Construction Management Office of Shenzhen's Transport Commission.
Under the plans, which will take effect from October 1, 2014, the Shenzhen government will subsidise between 75 and 100 percent of the additional cost to shippers of using bunkers with a sulfur content below 0.5 percent.
Twenty-three shipping lines were said to have signed a joint Green Shipping Shenzhen Declaration, showing there is support for efforts to improve air quality in the city where cargo ships were reported to account for 66 percent of the city's total sulfur dioxide emissions.
In neighbouring Hong Kong 19 shipping companies agreed in 2011 to voluntarily use low-sulfur bunkers, known as the Fair Winds Charter.
The Hong Kong government followed in September 2013 instituting a three-year programme offering subsidies of up to 50 percent of additional costs incurred by companies using low-sulfur bunkers and the jurisdiction is now looking to legislate for mandatory use of low-sulfur fuel at the port.
Shenzhen has said it is also looking at legislative steps to implement a mandatory emissions control area covering the Pearl River Delta by 2018 with Hong Kong saying it is supportive of the idea although the timetable is "very aggressive."
