China to Toughen Emissions Controls for Ships

By Kathy Chen and Keith Wallis

BEIJING/SINGAPORE, Dec 10(Reuters) – China will introduce tough controls on ship emissions at three key port areas from January to reduce sulphur dioxide which results in acid rain, causing respiratory difficulties and sometimes premature death, said the Ministry of Transport.

If strictly implemented the move would force oil suppliers to increase the supply of cleaner marine fuel, industry experts said. The ministry gave no details on how the new emissions rules would be enforced or penalties for non-compliance.

The new rules will apply to merchant ships navigating or anchoring in the waters of Pearl River Delta, Yangtze River Delta and the Bohai Bay rim, with a goal to cut sulphur dioxide by 65 percent by 2020 from the 2015 level, according to a document issued by the Ministry of Transport.

Similar emissions control areas exist in the North Sea and the north American coast.

Ships berthed at ports within the three Chinese emissions control zones will start using bunker fuel with a maximum sulphur dioxide (SO2) content of 0.5 percent from January 2016, the ministry said.

Hong Kong made it mandatory in July for merchant ships to switch to fuel with a SO2 content of 0.5 percent from high sulphur fuel. Neighbouring Shenzhen port launched a voluntary fuel switching scheme in July this year that is expected to cost 200 million yuan ($31.07 million) in subsidies over three years.

Enforcement of the new emission measures will initially be up to individual ports, but the controls will be toughened in 2017 to cover all key ports in the three control areas.

They will be tightened further from the start of 2019, when ships entering control zones, not just berthed or anchored, will have to use 0.5 percent SO2 bunker fuel or below. Fishing, sports and military vessels will be exempt, said the ministry.

Oil consultancy ICIS estimated that majority of fuel use in China’s shipping sector is currently using fuel with 1-2 percent SO2 content.

The International Maritime Organisation (IMO), a U.N. body which regulates merchant shipping, plans to introduce a global cap on ship emissions in either 2020 or 2025.

The IMO will carry out a review in 2018 that will include an assessment of the availability of low-sulphur fuel that will be used to decide the actual implementation date. ($1 = 6.4363 Chinese yuan renminbi) (Reporting by Kathy Chen in Beijing and Keith Wallis in Singapore; additional reporting by Chen Aizhu; Editing by Michael Perry)

(c) Copyright Thomson Reuters 2015.