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Postpone new low sulphur fuel regulation or risk major shift to road freight, warns ESC

Friday, 15 July 2011

The European Shippers’ Council is disappointed with the proposed amendments to the Sulphur Directive published today by the European Commission. The amendments have been adopted to bring the European Union's rules on marine fuel sulphur content in line with the decision of the International Maritime Organisation (IMO) to reduce the sulphur content of fuel used in the North European SECA from 2015. The EC's proposal is of great concern to European manufacturers, and in particular to those situated in Northern Europe.

The ESC, representing the freight transport interests of industry in Europe, fully recognises the need to reduce the levels of harmful sulphur particulates released by ships aroundEurope’s shores. Nevertheless, reductions should be made in ways that are practical and achievable without seriously damaging the future prospects of European industry and which results in real environmental benefit. The legislative proposals being adopted risk not achieving either.

ESC supports the adoption by the IMO of measures to reduce sulphur in marine fuel to 0.5% by 2020 or, depending on the fuel supply, at the latest by 2025. In the North Sea, Baltic and English Channel, however, the seas have been declared Sulphur Emission Control Areas (SECAs) in which ships must use fuel with no more than 0.1% sulphur content by 2015. Evidence from numerous studies has revealed the likely impact of such an accelerated introduction of these rules. Insufficient refining capacity exists to adequately supply the market with such low sulphur fuel; the costs for marine fuel will increase in the order of 80% and for the maritime transport by some 40%. This will force some industries located in the northern region ofEuropeto either re-locate or switch to alternative modes of transport, predominantly road due to insufficient reliability, capacity and access of rail freight. The shipping sector could lose up to 30% of their existing traffic in this region. High volume, low-profit freight will be most affected: goods such as forest products and ores.

Nicolette van der Jagt Secretary General of the European Shippers’ Council said: “We have called for a solution that will be better for industry and shipping alike, and avoid any knock on effect of actually raising emissions from transport.”

"We continue to believe that a postponement of the 0.1% sulphur limits in marine fuel until 2020 is the best possible solution. This would allow time to boost the supply of low sulphur fuel and develop technologies that help remove sulphur from ships' emissions. At the moment the timetable to introduce the suggested alleviating measures that would provide an alternative to diesel fuel use in 2015 is too tight.”

"We will urge the European Parliament andMemberStatesto look carefully into the various impact assessments, and to seek a solution that will ensure competitive maritime transport in Northern European waters while reducing sulphur emissions.”

The proposal (pdf) the proposal 

European Commission | Environment | Air | Transport & Environment