LONDON, March 11 (Reuters) – European Union targets to reduce sulphur emissions from the shipping sector will lead to huge costs for the British marine industry and reduce the country’s competitiveness, a report by UK engineering consultancy AMEC said on Monday.
Last year, EU environment ministers backed tough new limits for shipping fuel, which will be phased in across EU waters as part of efforts to cut pollution from toxic chemicals.
From 2015, the maximum sulphur content of shipping fuels will be cut by 90 percent to 0.1 percent in restricted Sulphur Emission Control Areas, which include some of Europe’s busiest waters, versus 1 percent now.
The report, commissioned by trade association the UK Chamber of Shipping, recognised the need to reduce sulphur emissions for environmental and health reasons but said the speed at which shipping operators needed to implement changes would be costly and reduce Britain’s competitiveness.
To meet the EU targets, ships have three options.
They can either use low-sulphur fuel which costs at least $300 a tonne more than the heavy fuel oil currently used; fit unproven technology to reduce sulphur from heavy oil or use liquefied natural gas (LNG) as a fuel, which is feasible for new builds but not for most of the existing UK fleet.
For ships which cannot yet use LNG or are not willing to invest in unproven technology, sea route operators would need to increase ticket prices by up to 20 percent for passengers and up to 29 percent for freight to offset the cost of low-sulphur fuel, the report said.
This could threaten some shipping routes, forcing them to be reduced or shut down altogether, and put more than 2,000 jobs at risk in Britain and Europe.
Increased ticket prices for sea routes could also mean more freight is moved by road, which would emit more carbon dioxide emissions.
“The wider impact is hard to quantify but these regulations will make the UK less competitive, making us a less attractive country for international investors – at the worst possible time for the UK economy,” said David Balston, Director of Safety and Environment at the UK Chamber of Shipping.
According to the European Commission, shipping companies will face extra costs of 2.6 billion to 11 billion euros ($3.2-$13.6 billion) to switch fuels or to fit exhaust filters that would scrub out the sulphur in marine fuel oil.
But the new limits could also result in up to 30 billion euros of public health savings. (Reporting by Nina Chestney; editing by James Jukwey)
Swiss marine power company WinGD will record the first installation of its new X-S short-stroke engine design following successful factory acceptance tests with engine builder Dalian Marine Diesel in March....
By Yimou Lee TAIPEI, March 7 (Reuters) – China has stepped up grey-zone warfare against Taiwan, aiming to make the areas around the democratic island “saturated” with balloons, drones and civilian boats,...
Austal USA has kicked off plans to construct a new manufacturing facility, marking a significant expansion of its shipyard capacity in Mobile, Alabama in support of U.S. Navy and Coast...
February 6, 2024
Total Views: 1756
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.