Explanatory Memorandum to COM(2011)439 - Amendment of Directive 1999/32/EC as regards the sulphur content of marine fuels - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2011)439 - Amendment of Directive 1999/32/EC as regards the sulphur content of marine fuels. |
|---|---|
| source | COM(2011)439  |
| date | 15-07-2011 |
Promoting a more resource efficient, greener and more competitive economy is at the heart of Europe 2020 strategy[1]. In this context further reduction of air pollution is important to improve human health and the environment and contributes to the attainment of more sustainable Europe. The EU actions over the past decades have resulted in a considerable reduction of emissions of most air pollutants, including sulphur dioxide (SO2), nitrogen oxides (NOx), volatile organic compounds, ammonia and particulate matter (PM). The greatest share of these reductions has been achieved by land-based emission sources such as industrial plants or road transport. Evidence shows that further reduction of such pollutants will deliver significant benefits to the health of EU citizens, the environment, and the economy at large.
Historically, less attention was given to address maritime emission sources compared to land-based sources. However, as maritime emissions of air pollutants can travel large distances they have an impact on land. Projections made in 2005 showed that without further regulatory action the continued growth in emissions of SO2 and NOx from the maritime sector will surpass total emissions of these pollutants from all land-based sources by 2020.[2]
The sulphur content of a liquid fuel essentially determines the SO2 emissions related to the combustion of that fuel, as well as the formation of (secondary) particular matter (PM). Directive 1999/32/EC as amended regulates the sulphur content of fuels used by maritime transport and incorporates certain rules, agreed under the International Maritime Organisation (IMO), into EU law. In particular, the Directive incorporates more stringent rules on sulphur content of marine fuels to be used in areas in need of special environmental protection, the Sulphur Emission Control Areas[3] (SECAs).
Since the amendment of the Directive in 2005, and with strong EU support, IMO rules, among others in relation to SO2, were revised in October 2008. These rules are contained in Annex VI of the Marine Pollution Convention 73/78 (Revised MARPOL Annex VI) i. Already at the time of the adoption of Directive's 2005 amendment the EU's co-legislators, expecting the need for further reduction of shipping emissions, called upon the Commission to review the legal requirements related to the sulphur content of liquid fuels.
This proposal is consistent with Article 191 of the Treaty on the Functioning of the European Union (TFEU) and aims to provide a high level of protection for human health and the environment. It is furthermore consistent with the EU 2020 Strategy and its associated flagship initiatives, notably those relating to the low carbon society roadmaps and innovation union, as well as existing EU policies for sustainable transport.
Contents
- RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENT
- LEGAL ELEMENTS OF THE PROPOSAL
- BUDGETARY IMPLICATION
- General context
- Grounds for and objectives of the proposal
- Consistency with other policies and objectives of the Union
- Public consultation
- External expertise and public information
- The results of the impact assessment
- Summary of the proposed action
- Legal basis
- Subsidiary principle
- Detailed explanation of the proposal
- Article 2
- Article 3
- Article 4
- 5. OTHER COMMENTS
In preparation of this amendment the Commission conducted an online consultation open to all interested parties (including organisations, Member States, NGOs, general public) during the period of 29 October 2010 to 5 January 2011. Stakeholders were requested to express their views on the possible incorporation of the latest relevant IMO's rules into EU legislation. In addition to the public consultation, the Commission also regularly consulted Member States' representatives and other stakeholders.
The public consultation yielded 244 responses from various organisations. The important contribution of the revised Annex VI of MARPOL to improving air quality in the EU has been widely acknowledged by all stakeholders. In the view of most respondents the EU provisions on the abatement technologies should be aligned with the revised Annex VI of MARPOL. The broad range of abatement technologies should in their view be allowed, while ensuring appropriate safeguards for the environment. Respondents have also broadly agreed that strengthening and harmonising monitoring and enforcement of the sulphur standards is an important tool that would ensure delivery of the intended environmental improvements. Some stakeholders raised concerns about the costs of the new requirements and the potential risk of modal shifts (from short sea shipping to trucks), in particular in areas where the sulphur standards are stricter (SECAs). Others underlined the need for a prompt EU action to encourage the industry's response and safeguard the environmental benefits of the revised Annex VI of MARPOL.
More detailed information on the results of the public consultation is presented in the Impact Assessment accompanying this proposal[5].
Several studies were conducted in support of the preparatory work leading to the present proposal. These studies have been made available upon completion on the Commission's webpage dedicated to EU policies on shipping emissions: ec.europa.eu/environment/air/transport
The new international limit values for the sulphur content of marine fuels are expected to significantly reduce emissions of sulphur dioxides from the maritime sector. This will greatly contribute to achieving the general environmental objectives stated in the 2005 Thematic Strategy on Air Pollution as well as the specific objectives stated in the Directive. It will furthermore yield important ancillary benefits in terms of reducing emissions of particulate matter and NOx (an important precursor of ground-level ozone). It is essential to ensure that these projected benefits materialise, not least for the purpose of promoting compliance with existing ambient air quality limit values.
The impact assessment confirms the cost-effectiveness of the full alignment of the Directive with the IMO stricter fuel standards and the rules on emission abatement methods. According to its findings the MARPOL Annex VI 2008 revision offers an estimated €15 to €34 billion in benefits to the EU in improved health and reduced mortality. The costs of implementing the revision range from €2.6 to €11 billion. As such the revision offers benefits that are three to thirteen times greater than the costs.
In addition to the alignment of the Directive with IMO rules, the impact assessment recommends maintaining the link between the stricter fuel standards in SECAs and those applying for passenger ships on a regular service outside SECAs. However, the introduction of a new SECA standard for passenger ships would be delayed by 5 years in order to avoid potential problems with fuel availability. The benefit to cost ratios for this option range from 1.5 to 6 (if the 0.1% standard is introduced in 2020) and from 0.8 to 10 (if the 0.1% standard is introduced in 2025).
Furthermore, the impact assessment analysed the issues identified during the review of the Directive. In particular, it showed that certain weaknesses exist in the enforcement provisions of the Directive (in particular on sampling and reporting). The impact assessment suggests to first develop guidance on monitoring and implementation of the Directive and, should this approach fail, to consider adopting binding rules.
Finally, the impact assessment also recommends that the European Commission and Member States use and, where possible and necessary, adapt existing instruments, to assist industry in the transition towards the new best available technology standards, including those agreed at the IMO or other relevant organisations (notably for NOx, PM, and GHG).
The purpose of this proposal is to revise Directive 99/32/EC on the sulphur content of certain liquid fuels with the aim to:
Align the Directive with the IMO rules on fuel standards, including the standards applicable outside SECAs.
Align the Directive with the IMO rules on the emission abatement methods.
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%).
Strengthen EU monitoring and enforcement regime.
Incorporating the international fuel standards into EU law would strengthen the effectiveness of these standards as they would be monitored and enforced under the EU regime, which is more effective than the international enforcement system. The proposed extended access to and promoting the use of innovate emission abatement methods as an equivalent compliance option addresses concerns about the cost implications resulting from the new IMO rules for certain industries. This would significantly lower the IMO compliance costs (by 50% to 88%) and promote innovative industry solutions, in line with the priorities of the Europe 2020 Strategy and Article 3 of the Treaty on European Union (TEU). Furthermore, stricter fuel standards for passenger ships on a regular service, which operate mostly in ports or close to shore, would ensure improvement of air quality in coastal areas. 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. Finally, strengthening EU monitoring and enforcement regime is particularly important considering that the significantly stricter fuel standards and the associated compliance costs may increase the incentives for circumvention.
These actions will ensure better implementation and enforcement of the Directive by national authorities and easier compliance by the industry and should result in a high level of environmental protection.
The primary objective of the Directive is the protection of the environment. This proposal is therefore based on Article 192 of the TFEU.
The right for the EU to regulate the sulphur content of liquid fuels with significant impact on the internal market and the environment is established in the TFEU. Article 3 TEU stipulates that The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. Moreover, Article 191 TFEU states that 'Union policy on the environment shall contribute to […] preserving, protecting and improving the quality of environment, protecting human health, prudent and rational utilisation of natural resources, promoting measures at international level to deal with regional or worldwide environmental problems […]'.
Global dimension of shipping and a cross-border impact of air pollution emitted from the combustion of fuels containing sulphur require that common rules are established for all Member States. In the absence of such rules different national standards would apply to ships operating in EU waters. Such a legal patchwork would make the operation of a shipping industry in the EU very complicated and costly, hence distorting internal market.
Only a harmonised action at EU level, with its strengthened monitoring and enforcement regime, would ensure an effective implementation and application of the international fuel standards across Member States.[6]
Article 1
This Article details each of the proposed amendments to Directive 1999/32/EC.
Article 2 of Directive 1999/32/EC is amended to adapt the definitions of marine diesel oil and marine gas oil to the latest ISO standard and to extend the definition of emission abatement method and align it with the definition of equivalents in Regulation 4 of the revised Annex VI of MARPOL.
Article 3 is amended to revise the provisions on maximum sulphur content of heavy fuel oil following the adoption of Directive 2010/75 of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control)[7], which recasts the European legislation on industrial emissions.
Article 3a is added to ensure that marine fuels are not used or placed on the market in Member States if their sulphur content exceeds the general standard of 3.5 % by mass. In particular, this provision addresses the risk that the possibility to use heavy fuel oil in combination with emission abatement mathods instead of low sulphur distillate fuels could result in use and placing on the market of poor quality fuel. Abatement methods would allow desulphurisation of high sulphur fuel and reduction of sulphur dioxide emissions to air. However, if poor quality fuel with high sulphur content is used for abatement, it could result in a discharge of high density waste water and have negative effects on marine environment. Ensuring a minimum fuel quality aims also at preventing the risk of ship engine failure;
Article 4 on maximum sulphur content in gas oil is amended to delete the references to the dates of entry into force of sulphur limits that have become obsolete.
Article 4a is amended to:
– Introduce a new provision on the sulphur fuel standard applicable outside SECAs ("general standard");
– Align the sulphur fuel standards applicable in SECAs with the revised Annex VI of MARPOL;
– Introduce 0.1% sulphur limit for passenger ships operating outside SECAs in 2020, thereby restoring the link of the requirements for passenger ships operating outside SECAs with those for SECAs;
– Clarify that the register of local suppliers of marine fuel that Member States are obliged to maintain should be publicly available;
– Delete the outdated references;
– Empower the Commission to designate new SECAs on the basis of the IMO's decision.
Article 4b is amended to delete the exemption from the obligation set out in Article 4b(1) for certain vessels operating in the Hellenic Republic, as the period for which it was granted has expired, and to delete the reference to the dates of entry into force of sulphur limits that have become obsolete.
Article 4c is amended and Articles 4d and 4e are added to align the Directive to the revised Annex VI of MARPOL and adapt it to technical progress. In particular, the proposed Directive requires Member States to allow the ships to use emission abatement methods as an alternative to using low sulphur marine fuels provided that they continuously achieve reductions of sulphur dioxide emissions equivalent to those that would be achieved by using low sulphur fuel. The use of emission abatement methods is also subject to certain criteria to ensure that these methods do not give rise to significant negative impacts on and risks to human health and the environment. The criteria will be established either by the IMO, subject to supplementation or amendment by the Commission Decision or, in the absence of the IMO instruments, by the European Commission. The emission abatement methods for use by ships flying the flag of Member States will be approved either on the basis of the 96/98/EC of 20 December 1996 on marine equipment[8] or on the basis of this Directive, by the Committee on Safe Seas and the Prevention of Pollution from Ships established by Regulation 2099/2002/EC. The procedure and conditions for testing of new abatement methods remain unchanged.
Article 6 is amended to empower the Commission to specify the frequency of sampling, the sampling methods and the definition of a sample representative of the fuel examined as well as to adapt the method for determining the sulphur content and the fuel verification procedure to the newest international technical standards.
Article 7 is amended to clarify the scope of the report on the sulphur content of fuels covered by the Directive to be submitted to the Commission by Member States and to empower the Commission to specify the format and the content of the report. The amendment also aligns paragraph 4 of Article 7 on adaptations of the relevant Directive's provisions to scientific and technical progress with the new comitology rules under the Treaty of Lisbon.
Article 8 is deleted as it refers to a Directive that has been repealed.
Article 9 is deleted as the Directive does not provide for implementing acts.
Article 9a is added to provide for conditions for the exercise of the power to adopt delegated acts by the European Commission.
This article requires Member States to transpose the proposed Directive.
This Article concerns the date of entry into force of the proposed Directive.
This Article addresses the proposed Directive to the Member States.
The proposal has no budgetary implication for the Union budget.
The Commission proposal is accompanied by the Communication which, in section 4, makes suggestions for compliance strategies and outlines existing tools and possible future measures which can help industry in meeting its environmental challenges.
The Commission also envisages to codify the Directive 1999/32/EC and its subsequent amendments, including this proposal for amendment, once adopted by the European Parliament and the Council. This will render the Directive 1999/32/EC more readable and legally clear and contribute to the achievement of the EU better regulation strategy.