New Fuel Rules Could Prompt Gasoil Price Spike
New fuel rules for ships entering low sulphur zones around northwest Europe and North America next year could trigger a price spike in European gasoil, whilst refiners will struggle to offload unwanted fuel oil. From January 2015, ships entering "Emission Control Areas" (ECAs) in the Baltic, North Sea and English Channel and around the North American coast, will have to switch from low sulphur fuel oil (LSFO) with 1 percent sulphur content to 0.1 percent gasoil, in a crackdown on marine pollution. Industry experts believe shipowners will opt for gasoil rather than using exhaust filter systems known as scrubbers or alternative fuels such as liquefied natural gas (LNG), because of high investment costs, long payback times, and the lack of suitable port infrastructure.
IMO Opens the Door to Reduce Shipping Emissions
Member states of the International Maritime Organisation (IMO) agreed on a Resolution on technology cooperation, which was delaying the implementation of standards to improve the energy efficiency of new ships. The resolution had been in discussion for two years and was hindering any progress on other measures to reduce greenhouse gas emissions from ships. The resolution meets the concerns of developing and developed nations by recognizing the principles of non-discrimination in the IMO and common but differentiated responsibilities (CBDR) in the UN's Framework on Climate Change. Reacting to the IMO decision, Antoine Kedzierski, T&E clean shipping officer, said: "The lack of agreement on this resolution was holding up the discussion on tackling shipping emissions at the IMO for too long.
NGO's Condemn IMO Environmental Implementation Delays
The International Maritime Organisation (IMO) today decided to postpone the entry into force of nitrogen oxide (NOx) emissions limits for ship engines from 2016 to 2021. Environmental NGOs Transport & Environment (T&E) and Seas at Risk, founding members of the IMO observer organisation Clean Shipping Coalition, condemn IMOās decision and now call on the EU to adopt its own NOx limits for cleaner air. The decision taken at a meeting in London of the IMO working group reviewing MARPOL Annex VI [1], adopted in 2008, delays the introduction of stricter NOx emissions limits for engines of ships built from 2016 when sailing in so-called āNOx Emissions Control Areasā. Currently the North American coastline is such an area, and the Baltic Sea might be designated to be one.
