The Commission presents a Communication reviewing the implementation of Directive 1999/32/EC related to the sulphur content of certain liquid fuels and on further pollutant mission reduction from maritime transport. It reports on progress made at the International Maritime Organization (IMO) since 2005 to reduce emissions of air pollutants, as well as on follow-up actions at the EU-level as proposed by the Commission, on the basis of the experience gained with the implementation of the Directive since 2005 as called for by Parliament and Council. It discuses the rationale to align the relevant EU legislation with the latest IMO rules, the 2008 amendment to MARPOL Annex VI setting new standards for lower sulphur fuels globally, but also more stringent limits in the established SOx Emission Control Areas. Furthermore, it presents a set of accompanying measures to promote and facilitate compliance. These measures include equivalent methods, allowing the shipping industry to achieve compliance in a technology-neutral manner.

Progress at the IMO on air pollution : it is recalled that pollution from maritime transport is regulated by Annex VI of the Convention for the Prevention of Marine Pollution from Ships (MARPOL 73/78) governed by the International Maritime Organization (IMO). Until 2008, the Convention allowed the use of marine fuels with a sulphur content of up to 4.5% in all sea areas with the exception of specified sulphur emission control areas (SECAs) where the maximum sulphur content was restricted to 1.5%. Following international calls for further action the IMO concluded a significant revision of the MARPOL Annex VI at the end of 2008, and prescribed a stepwise reduction of the sulphur content of fuels used in all seas to 0.50% as of 2020 and to 0.10% in SECAs as of January 2015.

The new provisions agreed in 2008 were a major step forward and emissions of SO2 from maritime transport are expected to decrease by more than 90% in SECAs and by more than 75% in other sea areas bordering the EU. Emissions of particulate matter (PM2.5) are predicted to decrease by more than 60% and 75% in SECAs and other sea areas respectively. The associated benefits of the 2008 MARPOL agreement are estimated to range at least between EUR 15 to EUR 34 billion per annum in 2020 due to improved health and reduced mortality in the EU. The costs of implementing the revision range from EUR 2.6 to EUR 11 billion.

Revision of Directive 1999/32/EC: following the IMO MARPOL Annex VI amendment agreed at the end of 2008, there are significant discrepancies in the Directive that need to be addressed, and a full alignment of the Directive with the new IMO provisions related to the sulphur content of fuels is proposed.

This includes the incorporation of the stricter sulphur standards applying in SECAs and other sea areas and the adaptation of EU rules to the IMO provisions on alternative compliance methods. Such alternative or equivalent measures will allow operators to choose the most appropriate solution, including the use of exhaust gas cleaning systems or alternative fuels such as LNG, provided they deliver the same emission reduction benefits compared to low-sulphur marine fuels. It will also boost innovation in green technologies as advocated by the EU 2020 strategy whilst enabling ship operators to reduce compliance costs by up to 90%

In addition, certain targeted adjustments to the EU monitoring and enforcement regimes are proposed given the increased risks for circumventing the tightened international rules on the sulphur content of fuels. Harmonised and strengthened EU monitoring and enforcement actions will help deliver important health and environmental benefits as well as contribute to the establishment of level playing field and fair competition internationally.

Furthermore, and based on the outcome of the impact assessment, the Commission proposes to maintain stricter standards for passenger ships operating outside SECAs to maintain the link between the stricter fuel standards in SECAs (now requiring maximum sulphur content of marine fuel of 1.5% and from 2015 - 0.1%) and those applying for passenger ships on a regular service outside SECAs (at the moment 1.5%). The introduction of the stricter fuel standard for passenger ships would be delayed by 5 years in comparison with SECAs in order to avoid potential problems with fuel availability.

Accompanying measures : making use of the additional technology-based compliance provided by the revised Annex VI of MARPOL, and subsequently by the revised Directive, such as scrubbers, alternative fuels (LNG) and shore side electricity, would require capital investments by the private as well public sector. Such investments may need to be incentivised notably when a wider set of sustainable shipping objectives going beyond compliance with Marpol Annex VI are being pursued. A number of short-term accompanying measures were identified to assist the sector:

the TEN-T Programme will continue to support projects of wider benefits e.g. addressing environmental issues, such as implementation projects, studies and pilot actions introducing new technologies, innovative infrastructure, and facilities supporting the deployment of LNG; under the Marco Polo II Programme, priority is given to projects aiming at the implementation and use of innovative technologies or operational practices that significantly reduce air emissions from ships, such as the use of low sulphur fuels, alternative fuels like LNG, and abatement technologies; investments targeting research, development, and innovation to reduce emissions from ships and to promote energy efficiency could be financed through the European Clean Transport Facility (ECTF), a European Investment Bank (EIB) dedicated lending programme; the use of Member States' funds could also be envisaged to support measures such as retro-fitting air pollution control devices or marine engines on vessels ahead of the entry into force of the new standards, or developing onshore infrastructure for the treatment of residues or marine-LNG refuelling stations.

Regarding the formulation of medium and longer-term accompanying measures , the Commission is developing a policy approach exploring hard and soft regulatory measures, green ship technology and alternative fuels, adequate green infrastructure, economic and funding instruments, research and innovation, and international cooperation. These measures will be put in place following the adoption of the White Paper outlining a Roadmap to a Single European Transport Area , and the new TEN-T Policy and Guidelines.

Next steps : the Commission has made an initial assessment of additional measures to reduce emissions of SOx, particulate matter, and NOx, for example through extended SECAs and new NOx emission control areas (NECAs). These showed promising benefit/cost ratios but the Commission is not in a position to make formal proposals to establish additional emission control areas, which may only be established in EU law once they have been agreed internationally by the IMO following the procedures specified in the MARPOL Convention. Moreover, the Commission does not have the competence to submit proposals to the IMO and so the current Communication and legislative proposal restricts itself to the previously established emissions control areas and the 2008 amendment of Annex VI of the MARPOL Convention. The Commission notes with appreciation, however, that certain Member States are in the process of requesting the designation of NECAs, and it will work closely with those and other Member States, as part of the ongoing review of the EU Thematic Strategy on Air Pollution due in 2013.

COM(2011)0441
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PURPOSE : to reduce the sulphur content of marine fuel, thereby reducing the impact of ships’ emissions of sulphur dioxide (SOx) and particulate matter on acidification and human health.

LEGISLATIVE ACT : Directive 2005/33/EC of the European Parliament and of the Council amending Directive 1999/32/EC as regards the sulphur content of marine fuels.

CONTENT : the Council adopted, by qualified majority, a Directive limiting the sulphur content of liquid fuels used on board seagoing vessels.

The main purpose of the Directive is to extend the scope of Directive 1999/32/EC, which lays down the maximum permitted sulphur content of heavy fuel oil, gas oil and marine gas oil used in the Community, to all petroleum-derived liquid fuels used on board ships operating in Member States' waters. The new provisions should lead to a substantial reduction in sulphur dioxide emissions (over 500 000 tonnes per year), to the benefit of highly populated ports and coastlines and acid-sensitive ecosystems.

Among other things, the Directive will:

- remove existing derogations relating to marine gas oil;

- give effect to the 1,5% sulphur limit applying within SOx emission control areas agreed through the International Maritime Organization;

- apply the same limit to all passenger ships operating on regular services to or from Community ports;

- require ships at berth in Community ports to use fuel containing no more than 0,1% sulphur;

- provide for the use of approved abatement technologies as an alternative to low-sulphur fuel.

The Directive also takes account of the new rules laid down by the MARPOL Convention regarding

the prevention of air pollution from ships, which entered into force in May 2005.

ENTRY INTO FORCE : 11/08/2005.

DATE OF TRANSPOSITION : 11/08/2006.

Directive 2005/33
OJ L 191 22.07.2005, p. 0059-0069

03619/2005

SP(2005)2124

The 13 amendments adopted by the Parliament were all part of a compromise package agreed with the Council. They do not change the fuel sulphur limits agreed in the Common Position. The Commission can accept all of the amendments in full.

The Commission accepts the following amendments concerning recitals on: minor rewording of the environmental and health justifications for directive; deletion of unnecessary text in relation to national emissions ceilings; calling for more efforts to be made to find international solutions); indicating the directive is the first step in an ongoing process and strengthening existing text on the availability of low sulphur fuel.

With regard to the substantive provisions, the Commission accepts the following amendments:

- clarifying the entry into force date for the North Sea SOx Emission Control Area;

- reflecting International Maritime Organization (IMO) requirements to help ensure the availability of compliant fuel;

- exempting ships which use shore-side electricity from the 0.1% fuel sulphur limit at berth;

- requiring continuous emissions reductions and monitoring for ships using exhaust gas cleaning as an alternative means of compliance;

- requiring the Commission review in 2008 to consider proposals to designate new IMO SOx Emission Control Areas in EU seas, and to reduce the sulphur limit in these areas down to a possible 0.5%, taking into account technological developments and a cost-effectiveness analysis; and

- stating that with its review, the Commission may consider submitting proposals on economic instruments as alternative or complementary measures.

EUR-Lex
COM(2005)0212

The European Parliament adopted a resolution based on the report by Satu HASSI (Greens/EFA, FI) and agreed on the text of compromise amendments reached in informal negotiations with the Council. The final outcome is, however, less ambitious than that envisaged in the environment committee.

The directive aims to reduce the sulphur content in marine fuels to 1.5% by 2007 (2 years after the entry into force of the directive). It will apply to all vessels in the Baltic, the North Sea and the English Channel, and passenger ships in all EU waters. The figure must be reduced to 0.5% in port areas where ships will be required to switch off all engines and use shore-side electricity while at berth in ports. A new recital states that h uman beings and the natural environment in coastal areas and in the vicinity of ports are particularly affected by pollution from ships with high sulphur fuels. Specific measures are therefore required in this regard.

Whilst the environment Committee had hoped to fix a second phase for new limits to come in by 2010, following negotiations with Council, a revision clause has been introduced. The compromise text states that the Commission should draw up a report by 2008, and that, in the light of progress made, and following a cost-benefit analysis, it “will closely examine the proposals to reduce, if possible, the limits to 0.5%” in zones under the auspices of the International Maritime Organisation (IMO). A new limit value, less than 0.5%, could then be considered. The Commission may consider submitting proposals on economic instruments as alternative or complementary measures in the context of the 2008 review, provided that environmental and health benefits can be clearly demonstrated.

A new recital states that the Directive should be seen as the first step in an ongoing process to reduce marine emissions, offering perspectives for further emission reductions through lower fuel sulphur limits and abatement technologies, and for economic instruments to be developed as an incentive to achieve significant reductions.

T6-0124/2005
OJ C 033 09.02.2006, p. 0325-0468 E

Results of vote in Parliament

The European Parliament adopted a resolution based on the report by Satu HASSI (Greens/EFA, FI) and agreed on the text of compromise amendments reached in informal negotiations with the Council. The final outcome is, however, less ambitious than that envisaged in the environment committee.

The directive aims to reduce the sulphur content in marine fuels to 1.5% by 2007 (2 years after the entry into force of the directive). It will apply to all vessels in the Baltic, the North Sea and the English Channel, and passenger ships in all EU waters. The figure must be reduced to 0.5% in port areas where ships will be required to switch off all engines and use shore-side electricity while at berth in ports. A new recital states that h uman beings and the natural environment in coastal areas and in the vicinity of ports are particularly affected by pollution from ships with high sulphur fuels. Specific measures are therefore required in this regard.

Whilst the environment Committee had hoped to fix a second phase for new limits to come in by 2010, following negotiations with Council, a revision clause has been introduced. The compromise text states that the Commission should draw up a report by 2008, and that, in the light of progress made, and following a cost-benefit analysis, it “will closely examine the proposals to reduce, if possible, the limits to 0.5%” in zones under the auspices of the International Maritime Organisation (IMO). A new limit value, less than 0.5%, could then be considered. The Commission may consider submitting proposals on economic instruments as alternative or complementary measures in the context of the 2008 review, provided that environmental and health benefits can be clearly demonstrated.

A new recital states that the Directive should be seen as the first step in an ongoing process to reduce marine emissions, offering perspectives for further emission reductions through lower fuel sulphur limits and abatement technologies, and for economic instruments to be developed as an incentive to achieve significant reductions.

T6-0124/2005

Debate in Parliament

A6-0056/2005

A6-0056/2005

The committee adopted the report by Satu HASSI (Greens/EFA, FIN) amending the Council's common position under the 2nd reading of the codecision procedure. It reinstated, sometimes in slightly modified form, the main demands adopted by the previous Parliament at 1st reading in 2003:

- the 1.5% sulphur limit should be applicable to marine fuels used throughout the European Community and not just in the Baltic, the North Sea and the English Channel - designated as SOx Emission Control Areas (SECAs) - or by passenger ships in regular service to or from Community ports;

- the 1.5% limit should apply in a first phase, starting 12 months after the directive enters into force, to be followed by a second phase (also applicable to passenger ships in regular service to or from Community ports) lowering the limit to 0.5% with effect from 1 January 2010;

- as the southern sea areas have not yet been designated as SECAs, they should be subject to a longer time-frame, with the first phase starting as from 1 January 2012 and the second phase from 1 January 2014;

- the limits would apply to all vessels of all flags, including vessels whose journey began outside the Community;

- in the first phase, Member States should ensure that, as from 19 May 2006 or 12 months after the entry into force of the directive, whichever is the earlier, marine fuels with a sulphur content not exceeding 1.5% by mass are made available in sufficient quantities to meet demand in all Community ports. The same requirement would apply in respect of marine fuel with the lower sulphur content (0.5%) from the starting date of the second phase (1 January 2010);

-in the case of passenger ships in regular service to or from any Community port, Member States would be responsible for enforcing the requirements at least in respect of vessels flying their flag and vessels of all flags while in their ports. They would also have to take "additional enforcement action in respect of other vessels in accordance with international maritime law"; - Member States should provide for effective penalties applicable to infringements of the monitoring and sampling provisions;

- the Commission should put forward proposals by 2008 to reduce other forms of air pollution from seagoing ships, including a proposal for an EU directive setting full quality standards for marine fuels along the lines of the 1998 directive on petrol and diesel fuels.

The changes introduced by the Council help to clarify the proposal and to bring its implementation into line with the IMO convention MARPOL Annex VI. They also promote the development of alternative technologies and economic instruments, and the consideration of tighter second phase limits at IMO and in the EU. The Commission therefore supports the Common Position adopted by qualified majority.

COM(2004)0801
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The common position was adopted by a qualified majority with the Cypriot and Italian delegation voting against and the Swedish delegation abstaining.

In the Council’s view, the common position constitutes a balanced compromise where : - there is a coherent set of dates for entry into force of the Directive’s provisions, taking into account the now imminent entering into force of MARPOL Annex VI (in May 2005); - no derogations laid down in conflict with the entering into force of MARPOL Annex VI and the establishment of SOxECAs; - the technical and practical problems of the new requirements for ships at berth are taken into consideration in a reasonable manner, including the specific temporary derogation asked by Greece for some Ro/Ro ferries.

In its amended proposal, the Commission accepted in full, in part or in principle 30 of the 36 amendments proposed by the European Parliament in its first reading. 21 amendments have now been incorporated, either verbatim or in spirit, in the common position.

The Council has now agreed to incorporate most of the Parliamentary amendments which offered clarifications, and which proposed trials for exhaust gas cleaning. On implementation dates there has been an important development since the Parliament’s first reading: the International Maritime Organization’s air pollution convention, MARPOL Annex VI, has received enough ratifications to enter into force. The implementation dates in the Common Position have therefore been rescheduled to correspond with the implementation dates in MARPOL Annex VI. With regard to second phase limits, the Council has agreed to include more specific text in the review clause (Article 7), proposing to press for tighter limits at the IMO in the context of a revision of MARPOL Annex VI, and also proposing to bring forward the Commission’s report on economic instruments as a possible complementary measure.

The Council also brought additional changes to the proposal, these are as follows :

- four new exemptions have been introduced for fuels used by ships which are: involved in military activities, securing the safety of life at sea, damaged, or using approved abatement technologies.

In Article 1(2), a number of new definitions are added, for MARPOL, Annex VI, warships, "placing on the market", "outermost regions", and "abatement technology";

- the repeal of the existing marine gas oil provisions is delayed until 2010 (including the derogation for Greece and the outermost regions which will remain until then);

- the Article on SOxECAs and passenger ships, Member States’ enforcement responsibilities are clarified, the provision requiring Member States to ensure the availability of compliant fuel is deleted, and application dates are generally altered to be in line with MARPOL Annex VI, or 12 months after entry into force of the directive, whichever is later;

- the low sulphur fuel requirement for ships at berth and inland vessels is delayed until 1 January 2010. For ships at berth, flexibility is introduced "allowing sufficient time"for fuel switching, short-stay vessels are exempted, and a two-year derogation is allowed for 16 Greek passenger vessels. Inland waterway vessels are exempted while at sea;

- much fuller text is included on the trials and use of new abatement technologies, including revised comitology procedures for their approval;

- the Article on sampling and analysis is slightly shortened and the drafting is clarified;

- the Commission report is brought forward to 2008, and its basis is revised to include trends in fuel costs, modal shift, progress at IMO and a new cost-benefit analysis of the passenger vessel provision. It may be accompanied by proposals for second stage sulphur limit values. A separate report on economic instruments is called for by 2005. The scope of the comitology procedure is limited;

- the Article establishing the regulatory committee is slightly redrafted.

12891/2/2004
OJ C 063 15.03.2005, p. 0026-0038 E

The common position was adopted by a qualified majority with the Cypriot and Italian delegation voting against and the Swedish delegation abstaining.

In the Council’s view, the common position constitutes a balanced compromise where : - there is a coherent set of dates for entry into force of the Directive’s provisions, taking into account the now imminent entering into force of MARPOL Annex VI (in May 2005); - no derogations laid down in conflict with the entering into force of MARPOL Annex VI and the establishment of SOxECAs; - the technical and practical problems of the new requirements for ships at berth are taken into consideration in a reasonable manner, including the specific temporary derogation asked by Greece for some Ro/Ro ferries.

In its amended proposal, the Commission accepted in full, in part or in principle 30 of the 36 amendments proposed by the European Parliament in its first reading. 21 amendments have now been incorporated, either verbatim or in spirit, in the common position.

The Council has now agreed to incorporate most of the Parliamentary amendments which offered clarifications, and which proposed trials for exhaust gas cleaning. On implementation dates there has been an important development since the Parliament’s first reading: the International Maritime Organization’s air pollution convention, MARPOL Annex VI, has received enough ratifications to enter into force. The implementation dates in the Common Position have therefore been rescheduled to correspond with the implementation dates in MARPOL Annex VI. With regard to second phase limits, the Council has agreed to include more specific text in the review clause (Article 7), proposing to press for tighter limits at the IMO in the context of a revision of MARPOL Annex VI, and also proposing to bring forward the Commission’s report on economic instruments as a possible complementary measure.

The Council also brought additional changes to the proposal, these are as follows :

- four new exemptions have been introduced for fuels used by ships which are: involved in military activities, securing the safety of life at sea, damaged, or using approved abatement technologies.

In Article 1(2), a number of new definitions are added, for MARPOL, Annex VI, warships, "placing on the market", "outermost regions", and "abatement technology";

- the repeal of the existing marine gas oil provisions is delayed until 2010 (including the derogation for Greece and the outermost regions which will remain until then);

- the Article on SOxECAs and passenger ships, Member States’ enforcement responsibilities are clarified, the provision requiring Member States to ensure the availability of compliant fuel is deleted, and application dates are generally altered to be in line with MARPOL Annex VI, or 12 months after entry into force of the directive, whichever is later;

- the low sulphur fuel requirement for ships at berth and inland vessels is delayed until 1 January 2010. For ships at berth, flexibility is introduced "allowing sufficient time"for fuel switching, short-stay vessels are exempted, and a two-year derogation is allowed for 16 Greek passenger vessels. Inland waterway vessels are exempted while at sea;

- much fuller text is included on the trials and use of new abatement technologies, including revised comitology procedures for their approval;

- the Article on sampling and analysis is slightly shortened and the drafting is clarified;

- the Commission report is brought forward to 2008, and its basis is revised to include trends in fuel costs, modal shift, progress at IMO and a new cost-benefit analysis of the passenger vessel provision. It may be accompanied by proposals for second stage sulphur limit values. A separate report on economic instruments is called for by 2005. The scope of the comitology procedure is limited;

- the Article establishing the regulatory committee is slightly redrafted.

12891/2/2004

15023/2004

COM(2003)0476
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COM(2003)0476
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T5-0248/2003
OJ C 068 18.03.2004, p. 0150-0311 E

T5-0248/2003

Debate in Parliament

CES0580/2003
OJ C 208 03.09.2003, p. 0027-0029

A5-0151/2003

A5-0151/2003

COM(2002)0595
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COM(2002)0595
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