EMEA News
Europe Reaches Provisional Agreement on Tougher Sulfur Limits
The Council of the European Union (Council) and the European Parliament (EP) have reached a provisional agreement on revisions to existing Directive 1999/32/EC, bringing tough new sulfur limits to Europe beginning January 1, 2015.
In line with MARPOL Annex VI, by 2020 the maximum sulfur content of marine fuel being used in European Union (EU) waters will be 0.5 percent.
In addition, the maximum sulfur content of marine fuel being used inside a designated sulfur emissions control area (SECA), effectively the North Sea, English Channel and Baltic Sea, will be 0.5 percent for all ships effective January 1, 2015.
Passenger ships operating outside of a SECA will continue to be subject to the existing 1.5 percent sulfur cap until the 2020 rules comes into force.
Any cost benefit that might be gained from non-compliance, such as a ship owner simply not buying or using the more expensive low sulfur fuel, will be negated by the penalties for the said non-compliance with the Council's press statement saying "effective, proportionate and dissuasive penalties" should, "at least be equivalent of the benefits deriving from the infringements."
The agreement still allows for the option of emission abatement methods, such as exhaust gas cleaning systems (EGCS), as an equivalent compliance option which the change proposal said "would significantly lower the IMO compliance costs (by 50% to 88%) and promote innovative industry solutions."
Brussels acknowledged that the cost of compliance could negatively impact the maritime industry such that it could cause a shift away from sea based to land based transportation, an aspect which short sea shippers discussing the upcoming North American Emissions Control Area (ECA) have noted, pointing out that if that happened it would be "counter productive to the aims of the ECA."
To address this, the EU's proposal allows for aid to be given to member states to support operators, providing that aid is deemed to be compatible with the treaty.
