COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS On the review of the implementation of Directive 1999/32/EC related to the Sulphur Content of Certain Liquid Fuels and on further pollutant emission reduction from maritime transport
Date: 2011-07-15
Institutions: European Commission
Subjects: air quality, diesel fuel, international standard, maritime transport, pollution control, quality of the environment, sulphur

EUROPEAN COMMISSION 

Brussels, 15.7.2011 
COM(2011) 441 final/2 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

On the review of the implementation of Directive 1999/32/EC related to the 
Sulphur Content of Certain Liquid Fuels and on further pollutant emission 
reduction from maritime transport 

SEC(2011) 1052 final

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

On the review of the implementation of Directive 1999/32/EC related to the Sulphur 
Content of Certain Liquid Fuels and on further pollutant emission reduction from 
maritime transport 

1. 

INTRODUCTION 

Air pollutant emissions from maritime transport increasingly contribute to air quality 
problems  in  the  EU.  Key  impacts  relate  to  human  health  and  acidification,  and 
extend  beyond  the  coastal  regions.  The  Thematic  Strategy  on  air  pollution  from 
20051 concluded that sulphur emissions from shipping were forecast to exceed those 
from all land-based sources in the EU by 2020. Further action is therefore needed to 
improve human health and the environment. Considering the international dimension 
of  the  shipping  industry,  the  Commission  called  for  action  at  the  International 
Maritime Organization (IMO) to further reduce emissions. This call was echoed by 
the  co-legislators  at  the  time  of  concluding  the  latest  amendment  to  the  Directive 
1999/32/EC  on  the  sulphur  content  of  certain  liquid  fuels  (the  Directive)  which 
regulates the quality of marine fuels used in EU sea areas and ports.2 

This  Communication  reports  on  progress  made  at  the  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. The latter also account for certain measures proposed 
on the basis of the experience gained with the implementation of the Directive since 
2005 as called for by the co-legislators. 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.  

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COM(2005) 446 final 
Directive 2005/33/EC amending Directive 1999/32/EC 

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2. 

PROGRESS  AT  THE  INTERNATIONAL  MARITIME  ORGANIZATION  ON  AIR 
POLLUTION 

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).3 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%.4  Due  to  the  particular  contribution  of 
shipping  emissions  to  the  acidification  problems  in  northern  Europe,  the  IMO  had 
designated the Baltic Sea, the North Sea and the English Channel as SECAs in the 
EU.  

Following  international  calls  for  further  action  to  reduce  emissions  from  maritime 
transport,  the  Parties  to  the  IMO  concluded  a  significant  revision  of  the  MARPOL 
Annex  VI  at  the  end  of  2008.5  This  revision  prescribes  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  2015.6  Provisions  to  achieve  compliance  are  technology  neutral  and 
can be met also through alternative emission abatement methods such as exhaust gas 
cleaning systems or alternative clean fuels such as LNG.7  

The new provisions agreed in 2008 were a major step forward in reducing emissions 
from the fast-growing shipping sector. As a result, 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 EU8. Likewise, 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  €15  to  €34  billion  per  annum  in  2020  due  to 
improved  health  and  reduced  mortality  in  the  EU.  The  costs  of  implementing  the 
higher cost range assumes a fuel-based 
revision range from €2.6 to €11 billion. The 
compliance  strategy  while  the  low  cost  range  assumes  the  use  of  above  mentioned 
alternative compliance methods. The high benefit-cost ratios reflect the higher cost-
effectiveness of emission abatement measures targeting marine sources compared to 
land-based  sources  where  considerable  emissions  reduction  have  already  been 
achieved. 

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http://www.imo.org/about/conventions/listofconventions/pages/international-convention-for-the-
prevention-of-pollution-from-ships-(Marpol). 
A  4.5%  sulphur  limit  equals  45  000  ppm  and  compares  with  10  ppm  currently  allowed  in  transport 
fuels. The actual average level of sulphur globally used in marine fuels to date, however, is below the 
maximum standard, i.e. at 2.7%.  
http://www5.imo.org/SharePoint/mainframe.asp?topic_id=233 
The entry into force of the "global" provision may be delayed to 2025 subject to a review on availability 
of the necessary fuels. 
Further  measures  to  limit  the  emissions  of  other  pollutants  such  as  NOx  were  agreed  as  part  of  the 
revised MARPOL Annex VI.  
Greenhouse  gases  and  air  pollutants  in  the  European  Union:  Baseline  projections  up  to  2030, 
EC4MACS Interim Assessment (2010).  

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3. 

REVISION OF DIRECTIVE 1999/32/EC 

Directive  1999/32/EC  as  amended  regulates,  inter  alia,  the  sulphur  content  of  fuels 
used  by  maritime  transport  as  well  as  monitoring  and  inspection  provisions 
applicable only at EU level.  

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. Based on the 
impact assessment conducted in support of the present review, a full alignment of the 
Directive  with  the  new  IMO  provisions  related  to  the  sulphur  content  of  fuels  is 
proposed.9 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 
furthermore  boost  innovation  in  green  technologies  as  advocated  by  the  EU  2020 
strategy whilst enabling ship operators to reduce compliance costs by up to 90%  10. 
Additional safeguard measures will ensure that alternative compliance methods such 
as  the  use  of  scrubbers  do  not  cause  damage  to  human  health,  safety  and 
environment. 

In addition, and based on the review of the implementation of the Directive, 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.11 The attached  legislative proposal  foresees the  possibility 
for the Commission to develop binding rules on how the member States monitor and 
report  to  the  Commission  although  in  the  first  instance  the  Commission  would 
prepare guidance for the member States on how best to improve implementation of 
the  Directive.  More  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.12 

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. 

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SEC Impact Assessment Reference. 
AEA et al., December 2009. 
A  summary  on  the  assessment  of  the  reports  submitted  is  provided  in  Annex  1.  Further  details  are 
provided in the impact assessment accompanying the proposal for an amendment of the Directive. 
More details on the legislative proposal are contained in the accompanying explanatory memorandum. 

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4. 

ACCOMPANYING MEASURES 

the 

introduction  of 

the  benefits  associated  with 

While 
international 
environmental  standard  are  significant,  compliance  with  the  new  rules  poses  a 
number  of  challenges  for  the  most  directly  affected  industry  sectors.  The 
Commission  will  continue  to  monitor  possible  impacts  on  the  shipping  sector, 
especially the Short Sea Shipping (SSS) sector to ensure adequate policy response in 
case  of  distortions  in  the  logistics  chain  or  in  case  of  significant  modal  backshift 
from sea to land based transport.  

this 

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. To this end, a number 
of short-term accompanying measures were identified to assist the sector.  

In the short term, under the current financial perspective, support is already available 
through  the  existing  EU  transport  funding  instruments,  i.e.  the  Trans-European 
Transport  Networks  (TEN-T)  and  Marco  Polo  II  Programmes.  Accordingly,  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,  abatement  technologies 
(scrubbers), or vessels using shore side electricity. 

In  addition,  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. Any such support must be 
in  compliance  with  existing  Community  Guidelines  on  State  aid  for  environmental 
protection13  and  the  Community  Guidelines  on  National  Regional  Aid  for  2007-
201314 respectively. 

Regarding the formulation of medium and longer-term accompanying measures, the 
European  Commission  is  developing  a  multi-dimensional  action  approach,  e.g.  a 
"sustainable  waterborne  transport  toolbox"  that  would  address,  from  a  broader 
perspective, and in an integrated manner the environmental challenges the sector is 

13 
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OJ C82 of 1.4.2008, p.1 
OJ C54 of 4.3.2006, p13 

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confronted with. This policy approach would explore measures such as 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 Area15, the 
new  TEN-T  Policy  and  Guidelines  based  also  on  further  consultations  with 
stakeholders,  including  relevant  Member  State  authorities.  This  set  of  integrated 
measures  may  be  further  elaborated  in  a  forthcoming  Commission  Staff  Working 
Document complementing this Communication.  

5. 

CONCLUSIONS AND NEXT STEPS 

The new measures (as agreed in IMO MARPOL Annex VI provisions in 2008) are a 
major  step  forward  in  reducing  air  emissions  from  the  fast-growing  maritime 
transport sector. The present proposal for amending Directive 1999/32/EC will align 
EU law with the latest IMO rules applicable in SECAs and other sea areas and the 
provisions on equivalent compliance methods. In addition, it will align existing fuel 
standards  for  passenger  ships  operating  outside  SECAs  with  those  applying  in 
SECAs  and  strengthen  the  monitoring  and  enforcement  regime.  The  proposal  will 
contribute  to  the  achievement  of  the  objectives  stated  in  the  existing  EU  Thematic 
Strategy  on  Air  Pollution  to  the  Europe  2020  strategy.  Thereby,  the  proposal  will 
ensure that the benefits for EU citizens and the environment are reaped and promote 
at  the  same  time  green  technologies  and  growth  driven  by  sustainable  low-carbon 
transport  systems.  In  addition,  the  Sustainable  Waterborne  Transport  Toolbox  will 
help  collaborative  efforts  from  all  stakeholders  in  moving  further  towards  a  truly 
innovative  and  sustainable  shipping  sector  that  can  support  economic  growth  with 
minimised environmental impacts.  

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.  Emission  control  areas  can  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. 
The  Commission  will  work  closely  with  those  and  other  Member  States  to  support 
such and other additional measures where appropriate, as part of the ongoing review 
of the EU Thematic Strategy on Air Pollution due in 2013 at the latest.16  

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16 

Commission  White  Paper  –  Roadmap  to  a  Single  European  Transport  Area  –  Towards  a  competitive 
and resource efficient transport system, COM(2011) 144 of 28.3.2011 
SEC(2011) 342 final  

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Annex 1: Summary report on the implementation of Directive 1999/32/EC on 
the sulphur content of certain liquid fuels 

Background 

Directive  1999/32/EC  on  the  sulphur  content  of  certain  fuels17  was  adopted  on  26 
April  1999  and  has  been  amended  several  times.  The  most  significant  amendment 
related to marine fuel standards dates from 200518. The deadline for bringing national 
legislation in compliance was 11 August 2006. Based on Article 7(2) of the Directive 
1999/32/EC  as  amended,  the  Commission  has  reviewed  a  number  of  general  and 
specific  issues  following  its  experience  with  the  implementation  of  the  Directive. 
The  review  fully  accounted  for  the  new  standards  related  to  the  quality  of  marine 
fuels  and  related  emission  controls  adopted  by  the  IMO  at  the  end  of  2008.  This 
Annex summarises the main results of the review with more details provided in the 
accompanying impact assessment report.19  

Transposition 

Member States were obliged to transpose the Directive into national legislation by 11 
August 2006. Only three Member States had reported national transposing measures 
within  this  time  frame.  Seven  Member  States  submitted  their  transposition 
information  within  1.5  years  whilst  the  latest  transposition  was  reported  in  April 
2010. In response to late and/or missing transpositions, the Commission initiated 16 
infringement procedures, all of which are now closed.  

Reporting by Member States 

Pursuant to Article 7.1 of the Directive, Member States must report annually to the 
Commission information on the sampling and analysis conducted for the purpose of 
ensuring that the sulphur content of fuels complies with the relevant provisions of the 
Directive. This article also requires Member States to report on the average sulphur 
content of marine fuels used in their territory which do not fall within the scope of 
the Directive. The Commission received 26 reports covering year 2007, i.e. the first 
full calendar year following the transposition deadline. For the year 2008 and 2009, 
respectively 25 and 26 reports were received to date. Pending the decision to launch 
infringement procedures, a series of reminders were sent between 2008 and 2010.  

Member  State  reports  have  been  analysed  on  an  annual  basis  by  the  Commission 
assisted  by  the  European  Maritime  Safety  Agency  (EMSA).  Analysis  showed  that 
reports received from Member States vary significantly in structure and content with 
many  reports  exhibiting  significant  information  gaps  making  assessment  difficult. 
The most important issues would appear to be: 

–  Few reports distinguish between sampling and results related to fuels for marine 

use and similar fuels used in land based installations; 

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OJ L121, 11.5.1999, p.13 
OJ L191, 22.7.2005, p.59 
[SEC reference] 

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–  The  number  of  samples  taken  and  sampling  frequency  in  the  EU  are  very  low 
(typically 1 sample per 1000 ships) and are insufficient to ensure a representative 
view  of  the  fuel  quality  used  and  sold  and  that  the  Directive  is  correctly 
implemented; 

–  Samples  were  almost  exclusively  used  to  monitor  the  sulphur  content  of  fuels 
covered by the Directive. This falls short of the entire requirement set by Article 
7.1 of the Directive;  

–  Problems with sampling and the analysis seem to stem also from a lack of clear 

provisions on the frequency and analytical methods to be used;  

–  Information related to the inspections of log books and bunker delivery notes has 
been  equally  limited.  A  separate  study  conducted  by  EMSA,  however,  showed 
that bunker delivery notes in general are fairly reliable.  

Sulphur content of marine fuels 

Following requests of ship operators, bunker deliveries are systematically tested by 
independent bodies. EMSA has obtained anonymised statistical information on fuel 
samples analysed in 2008. In addition, EMSA has commissioned a study on the fuels 
used by passenger ships operating in the Mediterranean and the Bay of Biscay. These 
are  non-SECA  areas  and  passenger  ships  on  regular  service  are  obliged  to  use  fuel 
with  a  maximum  sulphur  content  of  1.5%.  The  main  results  can  be  summarised  as 
follows: 

–  1.5%  SECA  standard:  5-10%  of  tested  samples  exceeded  the  allowed  sulphur 
content. However, approximately 60% of the exceedances are within the statistical 
confidence limit.  

–  0.1%  "at  berth"  standard:  25%  of  the  samples  violated  the  maximum  sulphur 

limit. 

–  1.5%  standard  for  passenger  ships  outside  SECA  areas:  With  the  exception  of 
France  and  to  some  extent  of  Spain,  the  average  sulphur  content  of  fuel  was 
between 2.3 and 3.3%.  

The rate of compliance varies considerably and is not yet satisfactory. In particular 
the fuels used by passenger ships in some parts of the Mediterranean Sea are a major 
cause of concern.  

Conclusions 

The  present  practise  of  reporting  by  Member  States  renders  assessment  of 
compliance  with  Directive  1999/32/EC  very  difficult.  The  provisions  of  this 
Directive on reporting and fuel sampling require clarification and guidance.  

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