IBIA Members Push for Transitional Issues Associated with 0.50% Global Sulfur Cap to Be Raised at IMO

The majority IBIA members believe the organisation should raise transitional issues associated with a 2020 global sulfur cap at IMO.

The International Bunker Industry Association (IBIA) says that a survey of its members, which asked if IBIA should bring transitional issues associated with a 2020 global 0.50 percent sulfur limit to the attention of the International Maritime Organization's (IMO's) Marine Environmental Protection Committee (MEPC), showed that slightly more than 85 percent believe IBIA should put forth a submission to MEPC.

As Ship & Bunker has reported, the decision to implement a more stringent global cap on sulfur content in bunker fuel is expected to be made later this year by the IMO at the 70th session of MEPC.

"Regardless of the date, shifting global bunker supply from mainly residual fuel to 0.50 percent sulfur fuels, which are expected to be principally distillates, cannot happen overnight," said IBIA.

"Most ship operators will want to hold off on making the shift for as long as possible because of the lower sulfur fuel will cost much more, so a near overnight shift is what we would be looking at."

IBIA says that a number of its members have argued that a 2020 implementation date leaves the industry at a "huge risk" to transitional issues, which may see the more stringent regulation largely ignored, damaging the IMO's authority as global regulator in the process.

Further, some IBIA members are said to be of the opinion that 2020 is too soon to meet the increase in global demand for distillates that will stem from a 0.50 percent sulfur cap for shipping, but believe that sufficient refining capacity may still be possible by 2025.

As a result, IBIA has suggested a phased introduction of the stricter sulfur limit may help avoid tight supplies, and provide lessons learned from implementation within a specific region, such as the European Union (EU), before being implemented globally.

IBIA says it has also been talking to other industry NGOs and member states at IMO about such matters, and has collected feedback from a variety of stakeholders.

"Through this feedback process, we are working on how to bring these concerns to the IMO's attention along with some ideas for how transitional issues may be addressed," explained IBIA.

In May, the International Chamber of Shipping (ICS) said that it may be "politically unacceptable" for the IMO to defer the implementation of a 0.50 percent global sulfur cap from 2020 to 2025.