EUROPEAN COMMISSION 
Brussels, 15.7.2011 
SEC(2011) 919 final 
  
COMMISSION STAFF WORKING PAPER 
SUMMARY OF THE IMPACT ASSESSMENT 
Accompanying document to the 
Proposal for a 
  
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 
amending Directive 1999/32/EC as regards the sulphur content of marine fuels 
{COM(2011) 439 final} 
{SEC(2011) 918 final}  
 
EN 1   EN 1. POLICY CONTEXT , PROCEDURAL ISSUES AND CONSULTATION OF INTERESTED 
PARTIES  
This impact assessment accompanies a proposal for an amendment to Directive 1999/32/EC 
on the sulphur content of certain liquid fuel s. In preparation of this amendment the 
Commission conducted an online co nsultation open to all intere sted parties. The Commission 
also consulted regularly with representati ves from Member States and with other 
stakeholders.  
Air pollution causes damage to human health and to the environment where we live. The EU 
acts on various fronts to reduce ai r pollution. As a result of this action emissions of most air 
pollutants have been reduced over the previ ous years and decades, including emissions of 
sulphur dioxide (SO 2), nitrogen oxides (NOx), vola tile 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. Sti ll, evidence shows that 
further reductions of such pollutants will deliver significant benefits to the health of EU citizens and to the environment, while being cost-effective.  
Maritime sources have historica lly been addressed to a much more limited extent than land-
based sources. However, as emissions of ai r pollutants can travel large distances many 
maritime emissions will have an impact on land, especially where they ta ke place close to the 
shore. It has been projected that without fu rther regulatory action the continued growth in 
emissions of SO
2 and NOx from the maritime sector wi ll surpass total emissions of these 
pollutants from all land-based sources by 2020.1 Taking into account the historical lag in the 
regulation of pollution in this sector the cost -per-tonne of reducing pollution from ships is 
currently significantly lower than for land-based sources. 
Directive 1999/32/EC (as amended by Directiv e 2005/33/EC) regulates the sulphur content of 
fuels used by maritime transport and incorporates certain international rules into EU law, as agreed under the International Ma ritime Organisation (IMO). In pa rticular, the Directive in its 
current form incorporates the more stringent rule s on the sulphur content of marine fuels to be 
used in areas in need of sp ecial environmental protection,  the Sulphur Emission Control 
Areas
2 (SECAs). The sulphur content of a li quid fuel essentially determines the SO 2 
emissions released in the com bustion of that fuel, i.e. the combustion of low sulphur fuels 
leads to low levels of SO2 em issions. Equally, a reduction of SO 2 emissions can be achieved 
by using higher sulphur fuels in combin ation with emission abatement methods.  
Already at the time of the adoption of the 200 5 amendment to the Di rective the EU's co-
legislators, foreseeing the need for further reduction of shipping emissions, called on the 
Commission to review the relevant legal requir ements on the sulphur content of liquid fuels. 
With strong support from Member States, IMO ru les on air pollution from ships, including for 
SO2, have been revised in October 2008. These rules are contained in  Annex VI of the 
Marine Pollution Convention 73/78 (MARPOL Annex VI).  
                                                 
1 SEC (2005) 1133: Commissions Staff Working Paper accompanying the Communication on Thematic 
Strategy on Air Pollution (COM(2005)446 final) and the Directive on Ambient Air Quality and Cleaner 
Air for Europe(COM(2005)447 final).  
2 In the EU SECAs cover the Baltic and North Seas and the English Channel. 
 
EN 2   EN 2. GENERAL PROBLEM CHARACTERIZATION AND OBJECTIVES  
2.1. General problem characterization 
The most significant changes to IMO MARPOL Annex VI in the 2008 revision addressed 
SO 2 pollution. In brief: 
(1) A reduction from 1.50% by weight of the sulphur  content of all mari ne fuels used in 
SECAs 
– to 1.00% by 1 July 2010; 
– to 0.10% by 1 January 2015; 
(2) A reduction from 4.50% by weight of the su lphur content of all marine fuels used 
globally outside of SECAs (the 'global standard'). 
– to 3.50% by 1 January 2012;  
– to 0.50% by 1 January 2020 subject to review in 2018, with a possible 
delay to 2025; 
(3) Allowing access to a broad range of emission abatement methods ('equivalents'), such 
as equipment, methods, proce dures or alternative fuels. 
The IMO 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. 
MARPOL Annex VI also introduces provisions on NOx emissions and allows for the creation 
of NOx Emission Control Areas (NECAs). 
The new MARPOL Annex VI rules on sulphur are now significantly different from the 
1999/32/EC Directive: 
– the Directive allows ships to use fuels with a sulphur content of up to 1.5% when operating 
in the SECAs, while the new MARPOL Annex VI allows a maximum sulphur content of 1.00% and as of January 2015 a maxi mum sulphur content of 0.1%;  
– the Directive offers a strong operator comp liance mechanism, while MARPOL Annex VI 
has no such enforcement mechanism; 
– the Directive allows for a limited range of equivalent emission abatement methods when 
compared to the revised MARPOL Annex VI.  
In addition to the alignment of the Directive with IMO rules, the review of the Directive has 
identified a number of other i ssues. In particular, it showed that certain weaknesses exist in 
the enforcement provisions of the Directive (on sampling and reporting) a nd that certain other 
provisions, such as the definition of 'port area' , of 'passenger ships on a regular service' or 
what method is to be used for the statistical interp retation of the verifi cation of the sulphur 
content of marine fuels , are unclear.  
 
EN 3   EN 2.2. Objectives 
The general objectives are to ensure that the health, environmental, and safety benefits 
associated with the IMO's agreement on reduc ing the negative impacts of air pollutant 
emissions from shipping are delivered in prac tice; and that the proper functioning of the 
internal market for maritime shipping, EU ports, and fuels and emission abatement technologies used in shipping is ensured. 
To achieve the general objectives, th ree specific objectives must be met: 
(1) To ensure alignment of EU law with th e latest international rules on maritime 
fuels and pollution, including the adaptation to advan ced technical standards 
and technologies;  
(2) To identify additional and/or alterna tive measures for reducing the negative 
environmental impact of emissions from maritime shipping on human health and the environment;  
(3) To strengthen and enhance the impl ementation of the EU monitoring and 
enforcement regime, ensuring compliance with the Directive.  
Chapters 3 to 5 of this executive summary present four main recommendations for the 
amendment of the Directive. Ot her issues related to the revision of the Directive are 
summarised in Chapter 6. 
3. T
RANSPOSITION OF THE REVISED IMO  RULES INTO EU LAW  
Specific problem definition The Directive is no longer aligned with inte rnational (IMO) rules fo llowing the revision of 
MARPOL Annex VI in 2008. 
Analysis of the options 
Ten options have been considered  in the impact assessment to address the misalignment of the 
Directive with MARPOL Annex VI, lead ing to the following recommendations: 
• Incorporate the 2008 IMO amendment of MARP OL Annex VI relating to the sulphur 
content of marine fuels in the Directive.  
• Align the Directive with the IMO provisions that allow a broader range of equivalent 
emission abatement methods. Complement thes e provisions with additional safeguard 
measures to ensure that equivalent ab atement methods have no unacceptable adverse 
impact on the environment. 
• Adopt IMO fuel verification procedure.  
The combination of these options would align EU rules with the international rules on the 
sulphur content of marine fuels. Incorporatin g the international fuel  standards and their 
verification procedure into EU law would strengthen the effectiv eness of these standards as 
 
EN 4   EN they would be monitored and enforced under  the EU compliance regime, which is more 
effective than the internationa l system. Moreover, extending access to and promoting the use 
of innovative emission abatement methods as  an equivalent compliance option would 
significantly lower the IMO compliance cost s (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 the Functioning of the European Union. Therefore, the transposition of the revised IMO rules would ensure that the environmen tal and economic objectiv es motivating the IMO 
amendment are effectively deliv ered in a harmonized and cost-effective manner across the 
EU.  
4. E
NVIRONMENTAL STANDARDS FOR PASSENGER SHIPS ON REGULAR SERVICE  
Specific problem definition The current Directive requires passenger ships operating on a regular service outside SECA 
areas to comply with the same sulphur in fuel standards as sh ips operating in SECA areas, i.e. 
with the 1.5% standard which was applicab le before the 2008 IMO MARPOL Annex VI 
revision. This standard is not part of MARPOL  Annex VI and exists at EU level only. The 
provision was introduced into the Directive as passenger ships operate mostly in ports or close to coastal areas and, as such, generally have a greater negative human health and 
environmental impacts than other types of ships. At the time the 1.5% standard was 
introduced for passenger ships the same fuel quality standard was applicable in SECAs and, 
hence, fuel availability was ensured. Howeve r, with the introduction of 0.1% sulphur content 
requirements in SECAs from 2015,  the costs and benefits of maintaining or changing the 
Directive's provisions on passenger ships operati ng on a regular service outside SECAs need 
to be reassessed, both on the basis of fuel availa bility and of the benefits and costs of sulphur 
in fuel standards for those ships. 
Analysis of the options 
Four options were assessed, leading to the following recommendation: 
• Restore the link with the SECA sulphur cont ent in fuel provisions  for passenger ships 
operating outside SECA areas by introducing the new 0.1% limit in  2020 (rather than 
in 2015). 
Aligning the requirements for pa ssenger ships operating on a re gular service outside SECA 
areas with the 0.1% standard in SECAs would deliver further human health and 
environmental benefits exceeding costs. However, the impact assessment recommends introducing a new SECA standard for passenger ships with a 5 ye ar delay from 2015 in order 
to avoid potential problems with fuel availa bility. The benefit to cost ratios for the 
recommended option range from 1.5 to 6 (2020) and from 0.8 to 10 (2025).  
5. I
SSUES RELATED TO COMPLIANCE MONITORING AND REPORTING  
Specific problem definition The current frequency of sampling is too lo w (typically once per one thousand ships) and 
there is evidence of significant levels of non-co mpliance with some of the sulphur in fuels 
 
EN 5   EN obligations of the Directive. As a result, a nd also due to the lack of harmonised rules on 
reporting, the reports submitted by Member Stat es make the assessment of compliance 
difficult.  
Analysis of the options 
Four options were assessed. The impact as sessment makes the following recommendation: 
• Foresee developing a nonbinding guidance on sampling and reporting at a first stage 
and, should this approach fail, c onsider adopting binding rules.  
This option would seek to improve compliance le vels through a soft instrument. Failing that, 
binding provisions would be intr oduced regulating sampling freque ncies, methods of analysis 
and the content and the format of Member States' reports. 
6. OTHER RELEVANT ISSUES FOR THE REVISION OF THE DIRECTIVE  
The impact assessment also considers a number of other issues for revision. 
6.1. Adapting the Directive to technical progress  
The impact assessment suggests aligning references and definitions in the Directive with the 
latest international technical  standards (such as ISO). 
6.2. Improving legal clarity and certainty 
The impact assessment suggests clarifying the definitions of 'passenger ships on a regular 
service' and 'port area' by means of guida nce to be issued by the Commission.  
6.3. Supplementary measures to address disp roportionate impacts on short sea 
shipping 
An overview of the studies on the impact of th e 0.1% sulphur requirement in SECAs on short 
sea shipping concludes that this  provision could have some e ffects on shipping patterns. Such 
effects may justify certain mitigating measures.  
The impact assessment recommends:: On a short term, to adapt the existing EU inst ruments to specifically target undesired impacts 
on modal backshift. This would allow for measur es to support the shor t-sea shipping industry, 
with the objective of reducing unde sirable modal shift from sea-based to land-based transport.  
On the medium and longer term, specific measur es could be consider ed provided additional 
assessment would be carried out.  
6.4. Designation of new Emission Control Areas 
Current evidence indicates that extending ECA coverage to other EU maritime areas is likely 
to offer positive net benefits. This would also address competitiveness concerns associated 
with differing environmental standards in EU sea areas. In addition, the 2008 MARPOL Annex VI revision introduced the possibility of establishing NOx Emission Control Areas 
 
EN 6   EN (NECAs) and to set emission standards for NOx and, in the future, PM. The creation of a new 
ECA would have to be compliant with specific criteria established by the IMO. 
However, the Commission does not have the competence to propose Emission Control Areas 
to IMO. Moreover, the emission limit values fo r NOx and PM are engine-related standards. 
Their introduction into EU law would require eith er an extension of the Directive's scope, as it 
currently regulates only sulphur fuel standards,  or the adoption of a new instrument. This 
could be considered in the futu re, taking into account  developments at IMO. At the moment 
the preferred option is that no new ECAs are introduced and the Commission will continue to 
support Member States in further developi ng proposals for additiona l ECAs and emission 
limit values for submission to IMO. 
7. CONCLUSION  
The new international limit values for the sulphu r content of marine fuels are expected to 
significantly reduce emissions of sulphur dioxides  from the maritime sector. This will greatly 
contribute to achieving the ge neral environmental objectives stated in the 2005 Thematic 
Strategy on Air Pollution and is in line with  the priorities of the Europe 2020 Strategy3. It will 
furthermore yield ancillary benefits in terms of reducing emissions of NOx and particulate 
matter. The international rules will deliver human health benefits that are three to thirteen 
times greater than the costs, plus other significant benefits related to environmental 
improvements. Also, for the purpose of prom oting compliance with existing ambient air 
quality limit values, a problem for several Me mber States currently facing infringement 
procedures, it is essential to ensure that  these projected benefits materialise.  
The impact assessment confirms the cost-effect iveness of a full alignment of the Directive 
with the IMO rules on fuel standards, including the standards applicable  outside SECAs, and 
with the provisions on emission abatement me thods. Incorporating the international fuel 
standards into EU law would strengthen the effec tiveness of these standa rds as they would be 
monitored and enforced under the EU regime, whic h is more effective th an the international 
system. The proposed extension of the use of  innovate emission abatement methods as an 
equivalent compliance option addr esses concerns about the cost implications resulting from 
the new IMO rules. The use of such methods significantly lowers IMO compliance cost and 
promotes innovative industry solutions, in line with the priorities of the Europe 2020 Strategy 
and Article 3 TFEU. Furthermore, the impact  assessment recommends maintaining the link 
between the stricter fuel standards in SECA s and those applicable to passenger ships on a 
regular service outsid e SECAs. However, the introductio n of a new SECA standard for 
passenger ships would be delayed by 5 years, in orde r to avoid potential issues with fuel 
availability. 
Also, increasing the effectiveness of the EU 's monitoring and enforcement regime is 
particularly important co nsidering that the signifi cantly stricter fuel standards, with associated 
higher compliance costs, may increase the incentives for non-compliance by economic agents. 
                                                 
3 Communication from the Commission, Europe 2020 A strategy for smart, sustainable and inclusive 
growth, COM(2010) 2020 final. 
 
EN 7   EN Finally, the impact assessment suggests that the European Commissi on and Member States 
use and, where possible or necessary, adapt ex isting public support instruments, to assist 
industry in the transition towards the new IMO standards.