Asia/Pacific News
Questions Raised Over Extension of Hong Kong Low-Sulfur Incentives
A Hong Kong-based public policy think tank is criticising the government for extending a low-sulfur fuel incentives program to 2018 despite stricter regulations mandating low-sulfur use coming into play later this year, Hong Kong media reports.
The program currently halves port and light dues for ships who switch to low-sulfur fuel, but Simon Ng, chief research officer of think tank Civic Exchange says new legislation will limit sulfur content in marine fuel to 0.5 percent and ensure that every ship will qualify for the incentives.
"The proposal is a calculated attempt to prevent cost-conscious ship operators from going to Shenzhen and other neighbouring ports where regulation on marine fuel quality is lacking," said Ng.
"Despite assurances from major shipping lines that they have no plans to bypass Hong Kong, the government is taking no chances."
Ng added that the government may have less of a cause to worry given the industry move towards cleaner technologies and environmental sustainability.
Instead, he suggests that the incentives program use two tiers, where those who comply with stricter regulations receive a standard rebate, while those who go one step further, such as switching to 0.10 percent sulfur fuel, receive higher amounts.
"This way, all industry players would receive some financial support from the government for switching fuel, the front runners would be motivated to reach for a higher standard, and Hong Kong as a whole would benefit from a green maritime sector in the long run," he said.
Early this year, Hong Kong delayed the start of its 0.5 percent sulfur cap, which was originally expected to take effect sometime in January 2015.
