Protest Over SOx Cuts
Protest Over SOx Cuts
European manufacturers, shippers and shipowners have united to protest at the impending sulphur dioxide emission reduction rules set to impact Northern Europe. They are objecting to strict rules that will make shipowners in the Emission Control Area (ECA) of Northern Europe use more expensive distillate fuels with 0.1% sulphur content from 2015, while those in other regions including the Mediterranean Sea can still use cheaper fuel oils with 4.5% content until 2012 and then 3.5% until 2020.
The group wants EU Member States to go to the International Maritime Organization to get the amendment to the marine pollution convention changed, saying that proper research into the impact of the rule has yet to be completed, and it will cost the region’s shippers millions of euros. Over 50 organisations from Europe’s shipowning, shipping and manufacturing sectors have sent an open letter to the European Commission. It has been written by the Swedish Confederation of Enterprises and is supported by organisations in Germany, Finland, Denmark, France, Spain, Belgium, UK, Poland, the Netherlands, Iceland and the Baltic countries. The letter also has the support of the European Shippers Council, European Community Shipowners Association, the European Seaports Association and the European Federation of Maritime Terminal Operators, which all believe that the ECA rules will result in a significant loss of trade. The German, Swedish, Finnish, Estonian, Lithuanian and Dutch shipowners associations are also signatories.
The letters’ signatories believe the decision to go ahead with the drop in sulphur emissions will lead to a negative modal back-shift from sea to road and will have a huge impact on freight costs. “Trade-off effects are, for example, increased CO2 emissions and sulphur leakage. These trade-off effects are clearly contradicting Commission policy such as climate policy and decreasing congestion by using shortsea shipping” the letter states.
The 0.1% limit on SOx emissions in the ECA’s was agreed in spring 2008 at the IMO’s Marine Environmental Protection Committee. The decision came as a surprise, with shipowners and other industry organisations expecting a 0.5% limit to be agreed on. [The 0.1% sulphur limit will also apply to the new North American ECA which has been approved in principle by IMO.]