EU issues ship emissions bill, fuel price to rise
Date: 22-Nov-02
Country: BELGIUM
The bill, which requires the approval of EU governments and the European Parliament, is aimed at cutting sulphur and other emissions from ships operating in European waters in order to reduce acid rain and smog pollution.
The proposal coincides with one of Europe's worst ever shipping pollution cases, as the wrecked tanker Prestige continues to leak its oil cargo into the sea off Spain.
"The Commission's new strategy to reduce ship emissions gives the maritime industry a timely opportunity to improve its green credentials," EU Environment Commissioner Margot Wallstrom said in a statement.
The bill's main thrust is to reduce the sulphur content of marine fuels from the current average of 2.7 percent or 27,000 parts per million (ppm). By contrast, petrol for cars contains around 50 ppm of sulphur, which causes acidification of moisture in the atmosphere.
The new law would impose a 1.5 percent sulphur limit for all seagoing vessels in the North Sea, English Channel and Baltic - areas where sulphur dioxide (SO2) contributes to acid rain which damages forests and lakes in the Nordic region.
Elsewhere in the EU, the 1.5 percent limit would apply only to ships operating regular passenger services.
An even lower, 0.2 percent rate would be imposed on ships while at berth in EU ports in order to reduce SO2 and particulate matter in populated areas where the emissions can contribute to serious respiratory illness.
Ships could switch to more polluting fuel, from a different tank, when they leave port, a Commission official said.
The Commission estimates industry could produce enough 1.5 percent sulphur heavy fuel oil by reblending or using lower sulphur crude, but that refiners would have to invest in more desulphurisation capacity to produce sufficient amounts of the 0.2 percent product.
According to the draft law, there would be a 45 percent premium for the 1.5 percent sulphur oil, adding 50 euros per tonne to the current price for heavy fuel oil of 110 euros ($110.2).
The overall increase in capital and running costs for the shipping industry would be between three and 14 percent, the Commission estimated. But the measures would improve the lot of people suffering from asthma, bronchitis and heart disease.
The Commission also proposed a push for tougher international emissions standards at the International Maritime Organisation, the United Nations agency which governs world shipping.