The issue will be discussed in a Westminster Hall debate tomorrow on the impact of sulphur regulations on the shipping industry, jobs and the environment, led by Labour MP Karl Turner.
The
UK Chamber of Shippinghas warned that up to 2,000 jobs could be at risk.
Guy Platten, Chief Executive Officer of the
UK Chamber, said:
“We support the move to reduce sulphur emissions and the introduction of tough new limits.
“But the sharp increase in demand for low sulphur fuel will see a massive spike in costs both for shipowners and potentially for ordinary diesel car users - so we need to use the new technology instead. But that technology is only now beginning to work, and could take up to two years to fit properly to all of our ships.
“Reducing sulphur is a job we agree needs doing, but it needs to be done in a pragmatic way that protects jobs as well as the environment. All we’re asking for is the EU to understand the practical realities we face and give us the time we need to comply.”
The
UK Chamberhas created a
video guideto the regulations, explaining what they mean, what they might cost and what can be done to limit their damage.
The International Maritime Organisation has agreed to reduce sulphur emissions from shipping, ensuring ships only emit 0.1% sulphur in designated Sulphur Emissions Control Areas. These regulations are due to come into force on January 1 2015.
Recognising that new technology would need to be developed, and with concerns over low sulphur fuel supply, IMO said that the implementation of these regulations should have a degree of flexibility, to allow companies to transition into the new era without damaging their business.
The European Commission removed this flexibility and pragmatism – and jobs will be lost as a result.
A report by AMEC found that a switch to low sulphur fuel will increase costs faced by operators by more than £300m.
And the spike in demand will increase costs on the forecourt for ordinary diesel users of £700m per year, or almost 3p per litre.
The
UK Chambersaid in order to reduce this burden, manufacturers and other exporters will be forced to shift their mode of transport onto road instead of ship. This would put up to 3.6 million tonnes of additional freight onto UK roads, clogging up the UK’s road infrastructure.
The other option is to fit ‘scrubbers’ to ship engines to reduce emissions, but figures from P&O say that each multi-engine ship will cost around 12 million euros to fit with scrubbers, and the vessel will have to be out of service for 50 days.
For smaller vessels it will cost around 2-3 million euros, which often times is more than the value of the vessel itself.
“A report by AMEC recently said if we implement new regulations before the technology is ready, then 2,000 UK jobs could be lost, thousands more lorries will clog up our roads and 12 million tonnes of additional Co2 will be emitted into our atmosphere unnecessarily every year,” Platten said.
“We know other countries within the EU share our concerns – but they are waiting for leadership from the UK. So this is an issue in Europe where the Prime Minister can make a real difference, it is a real opportunity for him to stand up for British business in Europe and succeed. We are simply asking that he takes it.”