EMEA News
Report: Low-Sulfur Rules Could Hurt the UK
Efforts to reduce shipping companies' sulfur emissions could hurt the environment by pushing more freight onto roadways and could put up to 2,000 jobs at risk, according to a new report commissioned by the UK Chamber of Shipping.
Under the International Maritime Organisation (IMO)'s Marpol Annex VI rules a new maximum sulfur limit for bunkers of 0.10 percent is scheduled to go into effect in Emissions Control Areas (ECAs) in 2015.
The report, conducted by consulting firm AMEC Environment & Infrastructure, considered three possible solutions for adapting to the new rules: liquefied natural gas (LNG) bunkers, low-sulfur fuel, and exhaust gas cleaning systems (scrubbers).
The report found that the use of LNG as a bunker fuel is feasible for newbuild ships but not appropriate for most existing UK vessels, while low-sulfur fuel would cost at least $300 per tonne more than current heavy fuel oil.
Examining scrubbers, which it says can be used under the IMO rules to clean exhaust from the burning of conventional fuel as an alternative to the use of alternative bunkers, the report says technology is not yet sufficiently proven to allow for their adoption before the 2015 targets.
Arguing that many ship owners are unable or unwilling to invest in LNG or scrubber technology, the report finds that switching to low-sulfur fuel would require operators of sea routes to increase ticket prices by up to 20 percent for passengers and up to 29 percent for freight, potentially forcing some routes to reduce or shut down and thus threaten related jobs.
Higher rates could also force companies to ship products by road, increasing overall carbon emissions and reducing UK industry's ability to compete internationally, the report says.
"We fully support the need to reduce sulphur emissions from ships, but we are particularly concerned that many routes will become non viable and for those vessels operating on them we seek transitional arrangements, including very tight time limited exemptions to allow technology to catch up and provide a realistic alternative," David Balston, director of safety and environment at the UK Chamber of Shipping, said in a statement about the report.
European Union (EU) leaders have been pushing for the adoption of LNG bunkers as an economical way for the shipping industry to adapt to the new rules.
