COMMISSION STAFF WORKING DOCUMENT Greening the fleet: reducing pollutant emissions in inland waterway transport Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Towards quality inland waterway transport
Date: 2013-09-10
Institutions: European Commission
Subjects: EU programme, air quality, carriage of goods, combined transport, inland waterway fleet, inland waterway shipping, innovation, reduction of gas emissions













EUR-Lex - 52013SC0324 - EN











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52013SC0324

COMMISSION STAFF WORKING DOCUMENT Greening the fleet: reducing pollutant emissions in inland waterway transport Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Towards quality inland waterway transport /* SWD/2013/0324 final */









COMMISSION STAFF WORKING DOCUMENT
Greening the
fleet: reducing pollutant emissions in inland waterway transport
Accompanying the document
Communication from the Commission
to the European Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions
Towards quality inland waterway
transport
TABLE OF CONTENTS
COMMISSION STAFF WORKING DOCUMENT Greening
the fleet: reducing pollutant emissions in inland waterway transport....................................................................................................................................... 1
1........... Introduction.................................................................................................................... 4
2........... Methodology.................................................................................................................. 4
3........... Consultation................................................................................................................... 6
4........... Problem definition........................................................................................................... 7
4.1........ Description of the problem.............................................................................................. 7
4.2........ Underlying causes of the problem.................................................................................... 9
4.2.1..... Regulatory framework not conducive
to the green propulsion of vessels........................... 9
4.2.2..... Long serviceable lifetime of IWT
engines as compared with road transport engines......... 10
4.2.3..... Lack of incentives for vessel
operators/owners to limit air-pollutant emissions................. 10
4.2.4..... Small market for inland vessels...................................................................................... 10
4.2.5..... Absence of alternative fuels in
the sector........................................................................ 10
4.3........ Existing legal framework for
addressing emissions.......................................................... 10
4.4........ How would the situation change
all things being equal?................................................... 12
4.4.1..... Developments in IWT under the
business-as-usual (BAU) scenario................................ 12
4.4.2..... Calculation of emission trends,
2012-50........................................................................ 12
5........... Objective..................................................................................................................... 13
6........... Policy options............................................................................................................... 13
6.1........ Which options have been
considered?........................................................................... 13
6.2........ Which options have been assessed
in detail?.................................................................. 14
6.2.1..... Description of the policy options................................................................................... 14
6.2.2..... Available technologies for
achieving standards............................................................... 17
6.2.3..... Pollutants addressed by the
proposed standards............................................................ 19
6.2.4..... Entry into force of standards......................................................................................... 19
7........... Impacts of the policy options......................................................................................... 19
7.1........ Health and environmental impacts.................................................................................. 20
7.2........ Economic impact.......................................................................................................... 21
7.2.1..... Economic costs of the policy
options............................................................................. 21
7.2.2..... Financing the implementation of
the measures................................................................ 22
7.3........ Social impacts.............................................................................................................. 23
7.4........ Administrative burden................................................................................................... 23
7.5........ Who is affected and how?............................................................................................. 24
8........... Comparing the options.................................................................................................. 24
8.1........ Cost/benefit analysis..................................................................................................... 24
8.2........ Technical feasibility....................................................................................................... 25
8.3........ Summary...................................................................................................................... 26
8.4........ Marginal impact of standards for
existing engines........................................................... 27
9........... Implementation aspects................................................................................................. 28
9.1........ Monitoring and compliance
checking............................................................................. 28
9.2........ Regulatory issues.......................................................................................................... 28
9.3........ Research and development needs in
support of greening the IWT fleet........................... 29
9.4........ Financing support......................................................................................................... 29
10......... Next steps.................................................................................................................... 30
11......... Conclusion................................................................................................................... 30
1.           Introduction
The Commission’s Communication on NAIADES
II sets out the ambition of making inland waterway transport a quality mode of
transport in all its dimensions. This accompanying staff working document
compares the performance of inland waterway transport (IWT) in terms of
emissions with that of the other land-based modes of transport, provides a
comprehensive analysis of options and identifies further steps for reducing
emissions of air pollutants from the IWT fleet.
The 2011 Commission White Paper on
transport, Roadmap to a Single European Transport Area — Towards a
competitive and resource-efficient transport system, promotes a modal shift
of freight transport towards rail and IWT, which have fewer societal impacts
than road transport. Indeed, IWT produces fewer accidents, less congestion and
less noise than road transport. However, the opposite is true as regards air-pollutant
emissions.
The sector-wide analysis of IWT emissions
presented in this staff working document examines a coherent set of actions
needed to improve the performance of IWT with respect to air emissions. These
actions are part of a broader approach for which the framework is presented here,
but which needs to be integrated into various separate initiatives. These
include initiatives currently under development in other policy areas, such as
the review of EU air quality policy and the ongoing review of the Non-Road
Mobile Machinery Directive, and new actions to be undertaken specifically for
the greening of IWT. Further fine-tuning and technical validation of these policy
measures will be carried out, and final decisions taken, in the course of the relevant
procedures, taking into account the contribution of this document.
2.           Methodology
The findings of the staff working document
are based on two studies: a report prepared as part of the PLATINA project[1] which identified and screened
possible measures for greening the fleet, and a study[2] commissioned by DG MOVE to assess
in detail the most effective measures identified. Unless otherwise stated, all
figures and tables providing detailed calculations are based on these studies.
The analysis broadly follows the Commission’s
impact assessment methodology: identify problems and corresponding drivers and,
from these, derive objectives and policy options to be assessed and compared in
quantitative and qualitative terms against a business-as-usual (BAU) scenario.
A broad range of possible measures,
identified from reviewing the literature and consulting experts, is divided
into four categories: infrastructure measures, ship-related technical measures,
ship-operational measures and organisational measures. These are subsequently
screened, on the basis of expert judgment, for effectiveness and technical and
regulatory feasibility. Both regulatory and voluntary actions are considered.
From this analysis, it is concluded that reducing emission limits through
regulatory measures, triggering ‘ship-related technical measures’, would be by
far the most effective approach. In a further step, a broad-brush assessment is
conducted for five scenarios, involving the introduction of emission standards with
two possible levels of stringency and two possible implementation deadlines.
From the assessment, it appears that setting emission levels for existing and
new IWT engines in the medium term (2020) that are equivalent to those applying
to road transport would stretch the limits of technological feasibility.
It has therefore been decided to include an
intermediary step consisting of a detailed analysis of the technological
maturity, emission reduction potential, side-effects and costs of various
existing and new emission reduction technologies, with a view to identifying the
best intermediate options. In this way, it is possible to identify the most
mature and effective technologies, which are subsequently used to calibrate the
policy options. This produces two ‘intermediate’ policy options with two levels
of stringency. In addition, for the options with the most stringent emission
limits, three variants are identified and assessed. A number of sensitivity
tests were run to investigate how the results of the calculations vary
according to changes in important assumptions with respect to:
·                        
fuel prices and differences between liquefied
natural gas (LNG) and diesel prices;
·                        
alternative fuels (methanol instead of LNG);
·                        
external cost unit prices for CO2
emissions;
·                        
research and development (R&D) costs for
developing new low-emission engines.
In view of the longevity of IWT vessels and
engines, 2050 is used as the assessment horizon. Projections of the costs of
developing and deploying the technologies required to implement the policy
options take account of substantial economies of scale with implementation in
other sectors, e.g. for after-treatment technologies and the use of alternative
fuels. The economic, social and environmental impacts are analysed from the
point of view of vessel owners, technology providers, public administrations,
the sector and the public at large. For the vessel owners, both the investment
and total operational costs have been considered.
The emissions and related external costs
generated by the IWT sector depend on various parameters. For example: the type
and volume of goods carried, the transport distance, the vessel type and
loading capacity, loading factor, loaded kilometre factor, transportation
speed, the specific energy consumption and emission profile of the engine used and
the region in which the vessel is operating.
Since precise and comprehensive data on the
engine composition of the fleet are not registered at European level, a
dedicated fleet/engine renewal and emission model was developed to estimate IWT
vessel and engine numbers, their lifetime and emission profiles between 2011
and 2050. A model was built using the available data sets[3], which were improved by
cross-reference and quality checking with vessel owners. Weighted average
values were calculated for the EU-27, differentiating between 10 typical vessel
types. As legislation is based primarily on the net power of the propulsion
engines, engine power is mapped to vessel types, taking account of the practice
of using multiple engines for the propulsion of larger vessels and push boats.
The model relies on a number of specific assumptions regarding the lifetime of
the engines and their emission profiles which differentiate according to vessel
size and age. It uses an emission profile for the main pollutants, NOx and
particulate mass (PM), depending on the year of construction of the engine
(older engines are considered to emit more pollutants than more recent engines).
More information is provided in Section 3 of the Annex.
It should be noted that the analysis is
limited to propulsion engines and therefore excludes stationary engines, for which
there is a lack of data. As a consequence, the impacts of emissions from
auxiliary engines and the cost of their possible inclusion in emission limit
legislation is not included in the analysis of policy options.
The analysis is limited to IWT vessels
carrying freight. The number of passenger vessels is significant (25 %)
but, as they operate seasonally, they have fewer hours of operation than
freight vessels and are assumed to have a share of 8-9 % of total IWT fuel
consumption between 2012 and 2050. The average age of passenger vessels tends
to be higher than for cargo vessels. The average engine power is roughly the
same.
The environmental impacts of IWT concern
primarily the emission of CO2 and air pollutants – nitrogen oxides
(NOx), particulates, sulphur dioxide (SO2) and non-methane volatile
organic compounds (NMVOC) – which can be measured in grams per tonne kilometre
(tkm). However, each substance has a different impact on human health and the
ecosystem and has to be evaluated differently. The externalities are quantified
and expressed in terms of a common monetary unit, so that results can be
compared and used for the design and assessment of policy measures. 
The starting point for the calculations of
the external costs for road transport and IWT are the Marco Polo freight
transport external cost coefficients, as reflected in the calculations provided
by the Commission’s Joint Research Centre (JRC)[4].
The Marco Polo approach is currently the only methodology available which
allows emissions of the various transport modes to be compared consistently on
a European scale. The approach follows the methodology presented in the IMPACT handbook
on estimating external costs in the transport sector[5]. The general approach of the
handbook consists of calculating emission factors and multiplying them by the
unit costs per externality. The JRC emissions data are based on the cost of
tank-to-wheel emissions.
3.           Consultation
In mid-2012, the Commission set up a
dedicated Common Expert Group on reducing emissions from the IWT fleet, which
it would chair. The purpose of the group is to advise the Commission in
preparing the ground for legislative initiatives to reduce emissions of air
pollutants from IWT, to reflect on possible flanking measures and to exchange
experience and information in this field.
The expert group involved Member State authorities, river commissions and key stakeholders[6],
including engine and ship manufacturers, the engine retrofitting industry,
independent experts and representatives of the IWT sector and ports. Various Commission
services are also represented: DG Environment, DG Climate, DG Enterprise, the JRC’s
Institute for Energy and Transport and the Trans-European Transport Network
Executive Agency.
The Group held its first meeting on 18
September 2012, followed by meetings on 23 October, 22 November and 17 December
2012 and 12 March 2013. There has been a high level of participation and
involvement on the part of the stakeholders.
The Commission also held a stakeholder
consultation, between 15 January and 8 April 2013[7], on the revision of Directive
97/68/EC on non-road mobile machinery (the NRMM Directive).
In meetings of the Expert Group, the
participants consistently expressed the view that effort was needed on
pollutant reduction to secure and maintain IWT’s good environmental image. Pointing
to the current economic situation, IWT operators have asked for financial help
to implement pollution reduction measures. The engine manufacturers consider
that R&D for new engine designs is profitable only if the market is big
enough. As the IWT sector is relatively small with a low engine renewal rate,
the most economical approach would be to align emission limits with
international standards[8].
Some Member States expressed concerns regarding the sector’s low earning
capacity as compared with the high investment costs and its difficulties in
accessing finance. Some stakeholders asked that intermediate stages be skipped in
favour of stable long-term standards ensuring a stable long-term investment
climate.
4.           Problem definition
4.1.        Description of the problem
IWT has for decades
been one of the most environmentally friendly modes of transport. It still has clear
advantages as regards energy efficiency, low congestion and low noise and
accident levels.
Although IWT emits much less CO2
than road transport, the external costs[9]
of its emissions to air (air pollutants and CO2) are roughly equal
to those of road transport. This is due to the higher cost of IWT air-pollutant
emissions.
Table 1: Weighted average external costs (in euro2011/1 000
tkm) for EU-27
 2011 || Climate change costs || Air pollution costs || Total external costs 
 Road || € 6.95 || € 7.00 || € 13.95 
 IWT || € 3.06 || € 10.47 || € 13.53 
Air pollutants present serious risks to
health. Even relatively low concentrations of air pollutants have been related
to a range of adverse health effects.
Monetised total external costs of air
pollution from IWT in the EU-27 for 2012-50 are estimated at € 51.5
billion. However, not all vessel categories contribute to the same extent:
roughly 80 % of the external costs come from vessels of over 110 m
and push boats, which represent only 20 % of the fleet in terms of numbers.
The smaller vessels, which are used less intensively, represent 80 % of the
fleet, but account for only 20 % of the external costs generated by IWT.
Figure 1: Discounted external costs of pollutants from IWT in
2011-50, by type of vessel (BAU scenario)
Like vessel categories, not all pollutants
contribute in the same way to the overall impact of air-pollutant emissions. Figure
2 shows that PM and NOx emissions account for most of the impact.
Figure 2 also demonstrates the low
contribution of SOx emissions to the overall impact of air pollutants from IWT.
New legislation in force since January 2011 sets the same sulphur content
limits for IWT fuel as for road transport fuel. As a result, as shown in the
BAU analysis of this report, the problem of SO2 emissions is largely
solved for IWT transport, unlike that of PM and NOx emissions.
Figure 2: Business-as-usual in IWT — breakdown of air-pollutant
emissions; EU-27 average (€/1 000 tkm)
NOx and PM emissions from IWT have been subject
to EU standards since the early 2000s. They are currently governed by the Stage
IIIA standards under the NRMM Directive[10]
and the CCNR 2 standards under the CCNR[11]
Regulations. It should be noted that emissions of some pollutants, such as ultra-fine
particulates, are currently not regulated. IWT standards are generally less
stringent than the EURO V standards that currently apply to heavy-duty road vehicles.
As from 31 December 2013, emission limits for these vehicles will become even
stricter, but there are no plans to reduce the limits for IWT. Also, IWT
engines have a long lifetime and therefore only a few of them are currently
subject to emission standards.
With the progress made with electrification
in rail transport, the higher economies of scale in short sea-shipping and the
significant reduction in road transport emissions over the past 15 years, IWT
is now the transport mode with the highest air pollution impact per tonne/km
transported[12].
In view of the White Paper target of shifting 30 % and 50 % of
freight transport to rail and IWT by 2030 and 2050 respectively, the impact of
IWT on air pollution is likely to increase if nothing is done to counteract it.
Figure 3: Air pollution costs in €/1 000 tkm: BAU
scenario
 Source: 2013 PANTEIA NEA
Given persistent non-compliance with EU air
quality standards and the emerging evidence from the World Health Organisation as
to the harmful effects of pollution from diesel combustion, the IWT sector will
need to make additional efforts if it is to contribute — on a par with other
transport modes — to reducing emissions to air. IWT needs to catch up with road
and rail in order to maintain a level playing-field as regards air pollutant
emissions.
4.2.        Underlying causes of the problem
The main causes of the problem of the
relatively high air-pollutant emissions from IWT are the regulatory framework,
the long lifetime of inland vessels and engines, the lack of non-regulatory
incentives for skippers to reduce emissions and the lack of alternative fuels. These
factors are exacerbated by the small size of the market for inland vessels and
their engines.
4.2.1.     Regulatory framework not conducive to the green
propulsion of vessels
The EU regulatory framework setting
emission limits for IWT started to enter into force later and is less stringent
than arrangements for other modes, in particular road transport. IWT emission
standards are applicable only to new engines entering the market, as is the
case in other sectors, but for IWT this limitation has a much larger impact due
to the longevity of the engines (see below). It is possible that rules applying
only to new engines entering the market may have led vessel owners to renew
existing engines rather than buying new engines that comply with emission limits.
As things stand, EU regulations do not
authorise cleaner LNG-fuelled engines; vessels can navigate using LNG only as
an exception granted case-by-case and for a limited period.
4.2.2.     Long serviceable lifetime of IWT engines as compared with
road transport engines
The long lifetime of inland barge engines
(30 000 to over 200 000 hours, depending on the engine type) results
in a slow uptake of the new engines in the ageing fleet. According to the IVR[13] database, because of the
longevity of vessels and engines, only 17 % of the active motorised cargo
fleet is equipped with engines that comply with the current or previous IWT
emission standards. In contrast to road transport, where vehicle turnover is five
to seven years, IWT vessels have an average age of 20 to 50 years, depending on
the vessel category. Innovations are introduced at a very slow pace.
4.2.3.     Lack of incentives for vessel operators/owners to limit
air-pollutant emissions 
CO2 reduction strategies usually
generate co-benefits for the IWT operators due to the lower fuel consumption they
entail. Operators have little or no economic incentive to invest in
after-treatment or end-of-pipe devices to reduce NOx or PM emissions, on the
other hand. On the contrary, in fact: the use of these technologies is usually associated
with higher operational and investment costs. Also, the shippers, as the IWT
operators’ clients, provide little or no incentive, financial or otherwise, to
operate more environmentally-friendly vessels.
4.2.4.     Small market for inland vessels
The relatively small and specialised market
for inland vessels limits the scope for sector-specific R&D. With about 11 500
vessels operating in the EU-27, engine suppliers are limited to existing
technology rather than relying on innovation.
4.2.5.     Absence of alternative fuels in the sector
Deployment of LNG-operated vessels is also
hampered by a shortage of bunkering facilities along the waterways. For the time
being, the limited number of LNG vessels means that there is not a strong business
case for investing in LNG bunkering, but the high bunkering costs (due to the
lack of facilities) discourage construction of LNG vessels. The Commission’s Clean
Power for Transport initiative[14],
which requires LNG bunkering along the inland waterways of the core TEN-T
network by 2025, seeks to break this vicious circle.
4.3.        Existing legal framework for addressing emissions
Until the adoption of Directive 2004/26/EC,
which amended the NRMM Directive and set emission limits for IWT from January 2007
onwards, there were no EU-wide compulsory emission limits for inland waterway
vessel engines. The Directive sets limits for exhaust emissions for the
following pollutants: carbon monoxide (CO), hydrocarbons (HC), nitrogen oxides
(NOx) and particulate mass (PM).
As regards the IWT sector, the Directive:
·                        
establishes differentiated emission limits for
new IWT propulsion engines coming onto the market, to be validated in a
specific test cycle and subject to type approval;
·                        
sets emission limit standards for existing
engines in IWT vessels navigating with a Community certificate; and 
·                        
subjects auxiliary engines of over 560 kW
to the same requirements as propulsion engines, while less powerful auxiliary
engines have to comply with the general standards applying to spark ignition or
compressed ignition engines.
The current Stage IIIA emission standards entered
into force on 1 January 2007, 1 January 2009 or 1 January 2012, depending on
the engine category. Only new engines installed on vessels since 2007 have to
apply these standards.
Directive 2006/87/EC laying down technical
requirements for inland waterway vessels requires engines on board vessels to
comply with the standards in the NRMM Directive and allows a number of
exemptions and transitional periods for existing and replacement engines.
Specific rules apply depending on the date a
vessel entered into service and the power range of the engine. Engines over 19
kW installed before 2003 are not subject to any emission standards. Engines
installed between 2003 and 2007 on vessels operating on the Rhine have to
comply with CCNR 1 standards, whereas those installed since 2007 are covered by
the CCNR 2 standards, in accordance with the relevant CCNR Regulations.
The CCNR 2 standards differ slightly from the Stage IIIA NRMM standards.
Figure 4: Current emission standards for road transport and
IWT: NOx/PM
The emission of SOx from IWT is regulated
by a different legal framework, Directive 2009/30/EC governing the quality
of gasoil used in inland navigation, which limits the sulphur content of fuel
used in IWT to 10 mg sulphur per kg fuel as of January 2011, the same
value as for road haulage, resulting in a substantial reduction of SO2
emissions from IWT.
With respect to emissions of CO2
and other greenhouse gases, there are no specific regulations for the inland
shipping sector, but IWT has a clear advantage over road haulage, as
demonstrated in Section 3 of the Annex.
4.4.        How would the situation change all things being equal?
4.4.1.     Developments in IWT under the business-as-usual (BAU) scenario
The business-as-usual reference scenario
presented below describes changes to emissions if no further targeted policy
measures were to be taken. In this scenario, it is assumed that voluntary
measures will be implemented at their current level to promote fuel efficiency
and emission reduction. Emission limits for IWT do not change, but a number of other
factors do:
·                        
IWT flows will increase according to the medium
baseline scenario in the 2011 study Medium- and long-term perspective of IWT
in the European Union[15];
·                        
the access arrangements announced by the port of Rotterdam[16]
will enter into force in 2025, allowing only vessels with engines complying
with Stage IIIA standards;
·                        
all single-hull tankers will be scrapped between
2012 and 2019 as a result of the Regulation on the European Agreement
concerning the International Carriage of Dangerous Goods by Inland Waterways (ADN);
·                        
under its Green Deal Initiative[17], the Netherlands will deploy 50 LNG vessels in the largest vessel classes (110/135 m motor
vessels and push barges) by 2015; 
·                        
engine renewal rates will be low in the short
term as a result of investments for new engines and new vessels being postponed
to 2018. Further detailed information on renewal assumptions is provided in Section
3 of the Annex;
·                        
it is estimated that the total number of vessels,
especially the smallest, will decrease over time, with only the 110 m category
expected to continue to grow;
·                        
the great majority of engines will be replaced
by conventional diesel engines that comply with the CCNR 2 standard.
In this scenario, it is expected that 6 600
engines on existing vessels will need to be replaced in 2018-50, and 2 400
new vessels will come into operation, on the basis of a total fleet in 2012 of
11 500 vessels with 12 500 propulsion engines.
4.4.2.     Calculation of emission trends, 2012-50
Emissions calculations concentrate on the
most critical emissions for IWT: NOx and PM. NOx and PM emission trends are projected
on the basis of current and assumed future fleet/engine populations and engines’
key emission characteristics. Figures 5 and 6 show the projections for NOx and
PM emissions respectively, broken down by vessel category. It is clear that
emissions from smaller vessels are expected to decrease later than those for
larger vessels. NOx and PM values are both expected to stabilise in the long
run at the legal level currently applying under emission standards for new
engines, which corresponds to the IIIA standard. The IIIA emission limits for
IWT are about ten times higher than the EURO VI emission limits for road
transport.
Figure 5: NOx emission trends in BAU scenario by vessel type
Figure 6: PM emission trends in BAU scenario by vessel type
5.           Objective
The objective is to set a policy and
regulatory framework whereby state-of-the-art emission reduction technologies will
be adopted, thus enabling IWT to catch up with other land transport modes as
regards the emission of pollutants.
6.           Policy options
6.1.        Which options have been considered?
We identify and analyse a large number of
measures that could reduce emissions. A detailed list of measures is provided
in Section 11 of the Annex. In total,
37 technical measures are examined in the following four categories:
·                        
infrastructure measures (waterway upgrading,
ports and mooring places, waterway information);
·                        
ship-related technical measures (change in fleet
structure, fuels, propulsion systems, hydrodynamics measures, after-treatment
systems and auxiliary systems);
·                        
ship-operational measures (sailing behaviour,
e.g. smart and eco-efficient steaming, maintenance); and
·                        
organisational measures (transport management,
e.g. fewer empty trips, increased load factor).
The majority of the measures were found not
to be effective (often less than 5 % emission reduction) and have been
discarded. Certain measures shown to have substantial emission reduction
potential, e.g. fewer empty trips, larger vessels or improved propeller
systems, can be influenced only by the market operators themselves. As such
measures would produce significant co-benefits for the operators, it is assumed
that their implementation is prevented by other market barriers, such as unbalanced
trade, saturation of fleet capacity, etc. These measures are therefore
discarded. Voluntary measures were also analysed and discussed by the Common
Expert Group. From the discussion, it appeared that it may not be easy to replicate
the impact of regional voluntary measures at EU level and that such measures
would not bring down emissions from IWT significantly. These measures are
therefore included in the business-as-usual scenario.
The conclusion from the preliminary
screening is that stricter emission standards are the only effective way to achieve
significant reductions in emissions from IWT. The next step consists of
determining the level of ambition for such standards. For this purpose, a
preliminary investigation considered five options, involving standards with two
possible levels of stringency[18]
and two possible implementation deadlines[19],
looking mainly at technical feasibility, impact on emissions and cost of
implementation. In view of the expected technical difficulties in applying to
all IWT vessels, by 2020, emission limits equivalent to those applying to road
transport, the preliminary investigation concludes that a more differentiated
approach is needed to identify policy options.
6.2.        Which options have been assessed in detail?
Following a detailed examination of the
feasibility of various technologies (see Section 2 on methodology), two policy
options for compulsory emission standards were assessed in detail.
6.2.1.     Description of the policy options
The two policy options considered are the ‘Conservative
Option’, with higher, more lenient emission limits, and the ‘Innovation Option’,
with lower, more stringent limits. The characteristics of the two options are
described in the table below:
Table 2: General
description of the policy options
   || Description of the policy option 
 Conservative Option C || This option takes the emission limits one level higher, from Stage IIIA to Stage IIIB, . which is still well below the limits for road. It applies to new engines only. The Stage IIIB emission limits are aligned with international standards. Hence, R&D for these engines have already been done. Unlike the current Stage IIIA engines, Stage IIIB engines cannot be retrofitted with state-of-the-art Selective Catalyst Reduction (SCR) technology to further reduce NOX emissions. 
 Innovation Option I || This option, which has been assessed with three variants, involves stricter emission limits for the whole fleet (existing and new engines). The limits for new engines differ according to power range and policy variant (Stage IIIB, IVB or V); for existing engines, a single limit is set (Stage IVA) — or none, depending on the variant and engine category. Stages IVB and V set emission limits for ultrafine particles (PN), methane and ammonia (see paragraph 6.2.3), as well as for CO, HC, NOx and PM. The three variants have the same overall impact in terms of total emissions by 2030, but vary in terms of scope and the date of entry into force of the emission limits. This option subjects a limited number of IWT engines to a Stage V emission limit similar to the EURO VI limit for heavy-duty road vehicles. 
The limit values considered for NOx and PM,
the most important pollutants, are presented in the table below for the various
emission stages considered, along with the Stage IIIA values currently in
force. Comprehensive tables of emission limits per pollutant for all stages are
presented in Sections 2 and 6 of the Annex.
Table 3: Summary of the NOx and PM emission limits
of the different standards
 Standards || NOx g/kWh || PM 
 Stage IIIA || (NOx + CO) 7.5 - 11 || 0.2 - 0.50 
 Stage IIIB || 1.8 - 2.1 || 0.045 - 0.14 
 Stage IVA || 1.8 - 2.1 || 0.03 
 Stage IVB || 1.2 || 0.02 
 Stage V || 0.4 || 0.01 
The Conservative Option takes the same approach to introducing new compulsory emission
limits as that adopted for previous updates of the NRMM limits: a restricted
reduction of limits entering into force within a relatively short timeframe. As
the option covers new engines only, engines with a broad range of emission
profiles will continue to operate on the EU’s inland waterways: a large number
of old engines that do not comply with any emission limits, and more recent
engines complying with CCNR 1, CCNR 2, Stage IIIA or, for newly installed
engines, Stage IIIB. The Stage IIIB standard is aligned to the US EPA tier 4
standard (to be implemented from the beginning of 2014 in the US) and the IMO tier 3 standard (see Section 8 of the Annex).
The Innovation Option sets emission limits that reflect the state of the art in emission
reduction technology, which is becoming increasingly mature in power categories
where due to the introduction of stringent emission standards for heavy-duty
road engines were introduced. This option covers both new and existing engines and
so prevents regulatory distortion in decisions as to whether to recondition an
existing engine or replace it with a new one. (In principle, existing engines
can be reconditioned ad infinitum). The Innovation Option has differentiated
emission limits depending on the power of an engine and whether or not it is
new. The dates of entry into force of the emission limits also vary.
For existing engines, a single set of
emission limits (Stage IVA) is considered, that can in principle be achieved by
all existing engines equipped with retrofitting devices.
For new engines, two emission standards are
considered: for smaller engines, a basic Stage IVB, which is less
ambitious than the limits for road transport, and a Stage V limit, equivalent
to road transport, for larger engines. In view of the R&D needed for Stage
V, this standard would not enter into force before 2020, or 2022 for one of the
variants. 
At this point, it must be noted that Stage
V limit values as suggested for the purpose of this study were deliberately
chosen to be identical with those of Euro VI of heavy duty road vehicles. Given
a number of structural differences between engines and their use in the road
and shipping sectors, respectively, this assumption will however require
further technical validation in order to confirm whether limit values can be
simply transposed by direct analogy, as suggested, or whether certain
adaptations will be needed. Also, it is worthwhile mentioning that underlying
test cycles for NRMM and road vehicles are different so that the direct
reference to road standards must be seen and assessed in the right
perspective.    
Given the limited impact of emissions from
smaller vessels, some variants of the Innovation Option propose more lenient emission
limits than Stage IVA or IVB in order to reduce overall compliance costs.
Three variants have been assessed for the
Innovation Option. For the sake of comparability, they have been designed in
such a way as to achieve the same external costs of air pollutant emissions by
2030:
·         
Option I-L ‘Innovation
Option — Level playing-field’: This variant sets the most stringent emission
levels of all policy options and variants; it covers all existing and new
propulsion engines of the IWT fleet. It does not differentiate between small
and large engines, except for the highest category of new engines, which have
to apply Stage V limits. It favours a level playing-field between the
different vessel categories and between existing and new vessels. It allows
more time (until 2022) for large vessels to adapt to Stage V. 
·         
Option I-E ‘Innovation
Option — Efficiency’: This variant requires more effort from vessels with the
biggest engines, which generate most of the air pollution. It sets less
stringent standards for smaller new engines and no emission limits for existing
engines normally used on vessels of less than 55 m. The more lenient
requirements for smaller vessels are compensated by an earlier introduction of Stage
V for larger vessels (by 2020). This variant is the most effective in terms of emission
reduction per euro invested, by avoiding high investment costs where emission
reduction potential is lower.
·         
Option I-M ‘Innovation
Option — Mix’: This variant is a mix of the first two variants. For engines
normally used on vessels of less than 38 m, the requirements are the same
as for variant I-E. For engines normally used on vessels of between 38 m
and 55 m, they are the same as for variant I-L. Stage V requirements also apply
to larger vessels from 2020.
The tables below provide an overview of the
emission limits for the policy options and the variants.
Table 4: Emission limits for new engines (coming onto the
market and to be installed on board vessels):
 New engines || Option I-L || Option I-E || Option I-M || Option C 
 75 ≤ P ≤ 220 || L ≤ 38 || IVB by 2017 || IIIB by 2017 || IIIB by 2017 || IIIB by 2017 
 220 < P ≤ 304 || 38 < L ≤ 55 || IVB by 2017 || IIIB by 2017 || IVB by 2017 || IIIB by 2017 
 304 < P < 600 || 55 < L ≤ 85 || IVB by 2017 || IVB by 2017 || IVB by 2017 || IIIB by 2017 
 (85X8.2 m) 
 600 ≤ P <981 || 85 ≤ L <110 || IVB by 2017 || IVB by 2017 || IVB by 2017 || IIIB by 2017 
 (85X9.5 m) 
 P ≥ 981 || L ≥ 110 || IVB by 2017 || IVB by 2017 || IVB by 2017 || IIIB by 2017 
 V by 2022 || V by 2020 || V by 2020 ||   
(P = installed net propulsion power of the vessel in kW;
L = length of the vessel that is most representative for the installed power)
Table 5: Emission limits for existing engines:
 Existing engines || Option I-L || Option I-E || Option I-M || Option C 
 || 75 ≤ P ≤ 220 || L ≤ 38 || IVA between || - || - || - 
 || 2017 and 2027 
 || 220 < P ≤ 304 || 38 < L ≤ 55 || IVA between || - || IVA between || - 
 || 2017 and 2027 || 2017 and 2027 
 || 304 < P < 600 || 55 < L ≤ 85 || IVA between || IVA between || IVA between || - 
 || (85X8.2 m) || 2017 and 2027 || 2017 and 2027 || 2017 and 2027 
 || 600 ≤ P <981 || 85 ≤ L <110 || IVA between || IVA between || IVA between || - 
 || (85X9.5 m) || 2017 and 2027 || 2017 and 2027 || 2017 and 2027 
 || P ≥ 981 || L ≥ 110 || IVA between || IVA between || IVA between || - 
 || 2017 and 2027 || 2017 and 2027 || 2017 and 2027 
(P = installed net
propulsion power of the vessel in kW; L = length of the vessel that is most
representative for the installed power)
6.2.2.     Available technologies for achieving standards
Implementation of new standards depends on the
necessary technological advances and a sufficiently large market to attract
suppliers. IWT engines represent a small market, but the technologies to achieve
the emission limits have been developed for, and are already applied in, other
markets. This section sets out which of the various technologies available can
be used to achieve the individual emission standards. It would, of course, be
for the market to decide which technology to adopt, as the limits are strictly
technology-neutral. Also, it should be noted that further technological
advances may render compliance with these standards technically easier or less
expensive in the future.
Stage IIIB
The emission levels for this standard can
be achieved by adding Selective Catalyst Reduction (SCR) equipment to a Stage
IIIA or CCNR 2 engine. The standard can also be achieved for new engines — with
no additional R&D — without adding retrofitting equipment. As such Stage
IIIB engines already have low-performance SCR, no additional SCR equipment can
be retrofitted to further improve on NOx emissions.
Stage IVA
This standard addresses only existing
engines. Its emission levels can be achieved by retrofitting engines with state-of-the-art
SCR and Diesel Particulate Filter (DPF) equipment. This assessment assumes the
presence of closed-wall flow filters, which are highly effective and reliable. This
solution would not work for a limited number of the most polluting engines and
these would need to be replaced by a new engine.
Stage IVB
The emission levels for this standard can
be achieved by retrofitting Stage IIIA or CCNR 2 engines with state-of-the-art
equipment. LNG-propelled vessels can also achieve Stage IVB through the
addition of SCR and DPF for dual-fuel LNG or possibly SCR only for mono-fuel
LNG. This standard also sets limits for particulate numbers (PN) to limit the emission
of fine methane (CH4) and ammonia (NH3) particulates.
Stage V
The proposed Stage V emission levels can as
of today only be achieved by vessels with LNG engines, which have lower NOx and
PM pollutant emissions than diesel engines. LNG engines achieve further
reductions when equipped with SCR and/or DPF filters, bringing emission levels down
to values similar to those applied in EURO VI heavy-duty road standards.
Further R&D is required to achieve Stage V for IWT diesel engines.
Figure 7: Schematic representation of technologies allowing
new engines to reach Stage IIIB, Stage IVB and Stage V standards
Figure 8: Schematic representation of technologies allowing existing engines to
reach Stage IVA standards
6.2.3.     Pollutants addressed by the
proposed standards
The current standards cover up to four pollutants:
carbon monoxide (CO), hydrocarbons (HC), nitrogen oxide (NOx) and particulates (see
Section 6 of the Annex for further details).
However, in order to ensure that these are
not replaced by harmful new pollutants, other substances are also taken into
account. Depending on the policy option, additional limit values are included
for:
·                        
NH3, which can result from the NOx
reduction process;
·                        
CH4, a greenhouse gas that can result
from using LNG;
·                        
Particulate number (PN), with a limit for fine
particles chosen to be identical with the one of  EURO VI standard for
heavy-duty vehicles.
6.2.4.     Entry into force of standards
For both the Innovation Option and the
Conservative Option, the standards could for instance be applied from 2017
onwards for new engines, except for Stage V, which would be introduced at a
later stage, for instance in 2020 or 2022.
For existing engines, standards could be
introduced gradually from 2017 as and when vessel certificates are renewed. In
view of certificates’ period of validity, the standards for existing engines
would be implemented by 2027[20].
This would prevent additional inspections of the vessels and give a transition
period for operators in order to allow sufficient time for retrofitting their
engines.
These timings may be further refined in
view of the outlook for the sector with respect to the current economic crisis.

7.           Impacts of the policy options
This section describes in quantitative and
qualitative terms the health and environmental, economic and social impacts of
the policy options. The qualitative impacts are scored using ‘+++’ for very
positive, ‘++’ for positive, ‘+’ for rather positive, ‘0’ for neutral, ‘-’ for
rather negative, ‘--’ for negative and ‘---’ for very negative scores.
7.1.        Health and environmental impacts
The most significant transport-related air
pollutants are particulates (PM), nitrogen oxide (NOx), sulphur dioxide (SO2)
and volatile organic compounds (VOC), and ozone (O3) as an indirect
pollutant. Their known impacts include, but are not limited to, health effects,
building and material damages, crop losses and impacts on ecosystems and
biodiversity.
The effects of PM on health occur at levels
of exposure currently being experienced by most urban and rural populations.
Chronic exposure to particulates contributes to the risk of developing
cardiovascular and respiratory diseases and of lung cancer. In the EU, average
life expectancy is 8.6 months lower due to exposure to the PM2.5 produced by
human activity.
Excessive ground-level ozone, a by-product
of NOx and VOCs, can have a marked effect on human health. It can give rise to breathing
problems, trigger asthma, reduce lung function and cause lung disease. In Europe, it is currently one of the air pollutants of highest concern. Several European
studies have reported that daily mortality rises by 0.3 % and the rate of
heart disease by 0.4 % per 10 µg/m3 increase in ozone exposure[21].
Epidemiological studies have shown that
symptoms of bronchitis in asthmatic children increase in association with
long-term exposure to NO2. An increased incidence of reduced lung
function is also linked to NO2 at concentrations currently measured
(or observed) in European cities.
The breakdown of air-pollutant emissions in
the IWT sector shows that NOx and PM account for more than 95 % of the
impacts of all pollutants emitted, so these emissions have been analysed in
detail. Tables and graphs on how they have changed over time are presented in Section
9 of the Annex.
By 2030, the Innovation Option reduces NOx
emissions by 72 000 tonnes and PM by 3 700 tonnes as compared with
the BAU scenario, whereas the Conservative Option reduces NOx by 39 000
tonnes and PM by 2 400 tonnes.
The Innovation Option would provide a significant
stimulus to the switch to LNG engines. Consequently, as compared with the
Conservative Option, it would involve lower emissions of CO2 and PM,
both pollutants that contribute to climate change. The increased use of LNG may
also result in higher methane emissions, which also contribute to climate
change, but their impact would be mitigated by the use of methane catalysts.
Given the fact that it makes the most use
of SCR/DPF technology, the Innovation Option scores highest for PN/HC/CO reduction.
Variant I-E scores lower than I-L, as there are no emission limits for the
smallest category of vessels. Option C shows no reduction for these pollutants.
Overall, the emission reductions would lead
to external cost savings, as compared with the BAU scenario, of € 23
billion with the Innovation Option and € 14 billion with the Conservative Option.
As shown in Figure 9, the Innovation Option is expected to result in lower
external costs for air pollutants per tonne/km than for heavy-duty road vehicles
by 2030. Option C, whilst decreasing air pollutants from IWT, will not compete
with road freight transport as regards external air pollution costs, even in
the very long term. The Innovation Option would reduce external costs by approximately
45 % by 2030. Option C would achieve a 28 % reduction of external
costs in that time.
Figure 9: External costs of air pollutants for BAU IWT and
road haulage and policy options I-L, I-E, I-M and C (€/1 000 tkm)
Please note that in the graph above, I-L
and I-E curbs are hidden by the I-M curb.
Table 6 : Score of the options
The scores
of the options are set out in the table below:
   || Option I-L || Option I-E || Option I-M || Option C 
 NOx reduction in 2030 || 86 % || 85 % || 85 % || 54 % 
 as compared with BAU || +++ || +++ || +++ || + 
 PM reduction in 2030 || 92 % || 90 % || 91 % || 58 % 
 as compared with BAU || +++ || +++ || +++ || + 
 CO2 reduction in 2030 || 11 % || 11 % || 11 % || 0 % 
 as compared with BAU || + || + || + || 0 
 PN/HC/CO reduction || +++ || + || ++ || 0/+ 
 CH4 reduction || 0 || 0/- || 0/- || 0 
 Reduction of external costs in 2030 as compared with BAU (€) || € 23 369 m || € 23 233 m || € 23 382 m || € 14 479 m 
 Reduction of external costs in 2030 as compared with BAU (%) || 45 % || 45 % || 45 % || 28 % 
7.2.        Economic impact
7.2.1.     Economic costs of the policy options
For the Conservative Option, the total
marginal costs for the new standards, including the cost of ownership, amount
to € 400 million. For the Innovation Option, the total marginal costs
are of the same order of magnitude, ranging between € 500 and 670 million
depending on the policy variant.
The Innovation Option requires
significantly more investment than the Conservative Option, however, with total
marginal investments at net present value estimated at € 1.9 billion.
The Conservative Option would require an initial marginal investment of only € 210 million.
These figures have to be compared with the € 1.2 billion investment
which would be required in the BAU scenario.
The difference between total costs of
ownership and total investment are due to the large differences between the two
options in terms of operational costs/savings. The costs of the Innovation Option
are significantly reduced by savings attributable to lower fuel (LNG) prices,
whereas the costs for the Conservative Option, which are the lowest, increase
due to additional maintenance, fuel and urea consumption. 
In order to valuate future costs and
benefits, a discount rate of 4% has been used. LNG is assumed to be 20% cheaper
than diesel at the point of delivery[22].
Table 7: Costs for the IWT sector by policy option
   || Economic Costs 
   || Option I-L || Option I-E || Option I-M || Option C 
 total cost IWT[23] || € 670 m || € 492 m || € 545 m || € 403 m 
 investments by IWT[24] || € 1 886 m || € 1 935 m || € 1 972 m || € 210 m 
7.2.2.     Financing the implementation of the measures
The marginal investment for a single engine
complying with the new emission standards ranges between € 17 000 for
a Stage IIIB engine on a small vessel and € 1 412 000 for a
powerful LNG engine on a push boat. The number of vessels that would need to be
fitted with new engines over the entire period covered by the assessment[25] is estimated at € 9 000.
The marginal investment to upgrade an
existing engine to Stage IVA standard for a small vessel is expected to range
between € 44 000 for a small engine and € 200 000 for a
large diesel engine. Requirements for retrofitting existing engines, when
spread over a period of 10 years[26],
would affect roughly 5 000 engines.
Further detail on financing requirements
for various categories of engine and various emission standards is provided in Section
10 of the Annex.
Owners of smaller vessels often have a more
limited financing capacity, as the value of the vessels, which serves as
collateral for loans, is also lower.. Moreover, loans are granted on the basis
of the level of indebtness of the owner and of the return on investment.
Considering that the societal benefit of clean air is not a financial return on
investment, the financing aspect especially in light of the table 8 on the
financial feasibility, is a key issue. However, it is clear that ship-owners
are required to continue to invest in safe and sustainable navigation, which is
also the case for operators in other modes of transport. 
Financing decisions need to take account of
the total costs of ownership, not only investment costs. As explained in the
previous section, total ownership costs differ significantly from investment
costs. Cumulative discounted cash flows for a 110 m vessel can vary significantly
depending on the emission standards and technologies adopted (see Figure 10 providing
an example comparing the cumulative cash flow between diesel engines and LNG
engines for a 110m vessel). As regards investment in LNG, the recurrent savings
from adopting LNG-based solutions may also serve as collateral for owners requesting
finance.
Figure 10:
Cumulative discounted cash flows for a 110 m vessel by emission
standard/technology
Table 8: Score of the options
The scores of the options are as follows:
   || Option I-L || Option I-E || Option I-M || Option C 
 Financing feasibility || --- || - || -- || - 
7.3.        Social impacts
Option I-L would boost employment because
of the need to retrofit engines and the consequent increased demand for
products and services from engine manufacturers, equipment suppliers and wharves.
By exempting existing engines in smaller vessels, Option I‑E would have
less of an impact in terms of employment. With its off-the-shelf solutions, Option
C would generate the least employment in the sector of sustainable ship
technologies.
If, faced with the need to make new
investments, some ship-owners may decide to leave the profession. It is
expected that the freight would then be carried by other vessels, by truck or
by rail. This may therefore affect structure of IWT sector but no overall effect
on employment. Further analysis may provide more insight in this matter. 
Table 9: Score of the options
The scores of the options are as follows:
   || Option I-L || Option I-E || Option I-M || Option C 
 Labour market effects || +++ || ++ || ++ || + 
7.4.        Administrative burden
Administrative burden may increase with the
variety of technologies used for ship propulsion. In particular, technologies
that may give rise to safety considerations (e.g. LNG) may entail separate
certification and information requirements, resulting in additional
administrative costs. Developing general standards could prevent these costs from
becoming too high. Additional administrative burden could also be substantially
reduced if the entry into force of new emission limits were to coincide with
the renewal of certificates, when vessels have to be inspected in any case. Technology-neutral
standards may also contribute significantly to keeping administrative burden
within reasonable proportions.
Administrative burden would be reduced
where certain vessel categories are exempted from applying standards, such as
in variant I-E, Option C and, to a lesser extent, variant I-M. With variant
I-L, all vessels would be subject to emission standards, so this variant would
entail the greatest administrative burden.
Table 10: Score of the options
The scores of the options are as follows:
   || Option I-L || Option I-E || Option I-M || Option C 
 Reduction of administrative burden || -- || 0/- || - || 0 
7.5.        Who is affected and how?
In general, the EU population will benefit
from reduced emissions of substances that are harmful to human health, in
particular NOx and PM. There may be marginal environmental effects, both
positive (reduced CO2 and PM emissions) and negative (increased
methane emissions).
For the inland shipping companies and
owner-operators, the most important issues are financial. Increased expenditure
for vessel engines and associated equipment, and increased running costs, may raise
the cost base for IWT to a certain extent, but it is considered that the modal
shift effect would be negligible and earning capacity will not necessarily be
negatively affected, provided that a level playing-field is maintained so that
operators can pass on the costs to their customers. For the largest vessels,
operating costs may actually fall due to fuel cost savings if LNG is adopted. Furthermore,
the increased use of LNG may also present new market opportunities for IWT.
The retrofitting of vessels will also involve
a financial cost due to the (limited) time for which they are out of service.
This has been taken into account in the cost/benefit analysis.
Crew members operating LNG engines will
require training for safety reasons. Crew members are expected to benefit in
terms of health from cleaner engines.
Engine manufacturers, equipment suppliers
and ship wharves may face increased demand. If this demand is sufficiently
spread over time, the sector should be able to prevent capacity bottlenecks. If
a Stage V diesel engine is developed, upfront R&D would be necessary
for engine manufacturers and equipment suppliers. If higher emission standards are
adopted in other parts of the world, manufacturers may have a ‘first mover’
advantage and decrease production costs.
The fuel production industry will be
positively affected in the event of increased demand for LNG.
Ports will benefit from cleaner air and
will have to ensure that LNG bunkering facilities are provided for the inland
waterways network.
8.           Comparing the options
8.1.        Cost/benefit analysis
The benefits for society are substantial with
all the policy options, but about 50 % greater with the Innovation Option than
with the Conservative Option. As total marginal costs are roughly equal for all
the options, this results in substantially better cost/benefit ratios for the
Innovation Option.
As regards the variants of the Innovation Option,
variant I-E (optimised for efficiency) has the best cost/benefit ratio, as
requirements for vessel categories with higher-cost/lower-benefit ratios are
excluded. Variant I-L, which covers all vessels, has the lowest cost/benefit
ratio of the three variants, with Option I-M in the middle.
Due to its low investment costs for the
operators, the Conservative Option has the best benefit/investment ratio.
Table 11: Cost/benefit analysis result by policy option
   || Cost/benefit analysis results 
   || Option I-L || Option I-E || Option I-M || Option C 
 total cost IWT[27] || € 670 m || € 492 m || € 545 m || € 403 m 
 investments by IWT[28] || € 1 886 m || € 1 935 m || € 1 972 m || € 210 m 
 Net impact for society[29] || € 22 698 m || € 22 740 m || € 22 706 m || € 14 076 m 
 Benefit/cost ratio[30] || 33.9 || 46.2 || 41.6 || 34.9 
 Benefit/investment[31] ratio || 12.4 || 12 || 11.9 || 68.6 
Further analysis (see Section 5 of the Annex) shows that the
category of large vessels/large engines (>981 kW) has a major influence on
the results. This class has a very high benefit/cost ratio (113 to 129) and
also significantly lower external costs (reduced by 50 % as compared with
the business-as-usual scenario). Moreover, in this vessel class, all new LNG-propelled
vessels added to the fleet reduce both the operational costs for the
ship-owner/operator and the external costs for society as compared with BAU.
Setting Stage V emission limits for this class of vessel — as envisaged under
the Innovation Option — will promote conversion to LNG and trigger significant
societal and economic benefits.
8.2.        Technical feasibility
Engine manufacturers are currently
developing Stage IIIB technology in order to comply with US standards for
marine engines. This will be in the near future "off the shelf"
technology. As no Stage IVA, IVB or V level requirements exist yet, existing
engines would need to be retrofitted to comply with these more stringent
standards. If engine manufacturers do not consider the IWT engine market large
enough to justify R&D investments to develop engines that comply with the
emission standards, it is expected that integrators will adapt existing engines
by adding SCR and/or DPF equipment where necessary.
As of today Stage V emission standards could
already be met with LNG dual-fuel combined with SCR and DPF or, probably, with
LNG mono-fuel combined with SCR. A Stage V diesel engine needs to be developed
for the large existing vessels unable to convert to LNG. Option I-L allows more
time for developing the Stage V technologies, resulting in a higher score
for technical feasibility than for Options I-E and I-M, where less time is
available.
Certain smaller vessels may lack space in
the engine room for the retrofitting equipment (filter, SCR, urea tank). This
problem is only relevant for Option I-L, as in Option I-E existing small
vessels are exempt. Option I-M takes an intermediate approach in this respect.
With R&D already done or planned and no
need for retrofitting, Option C scores well for technical feasibility.
Table 12: Score of the options
The scores of the options are as follows:
   || Option I-L || Option I-E || Option I-M || Option C 
 New engines || - || - || - || +++ 
 Retrofit existing engines || --- || 0/- || - || +++ 
8.3.        Summary
This section provides a brief overall
comparison of the two options. Table 6 at the end of the section summarises the
findings in a multi-criteria scoring table.
The Innovation Option would reduce
pollution from IWT by 50 % in 2030 as compared with business-as-usual, the
Conservative Option by 28 %. The Innovation Option closes the gap between IWT
and road transport, in terms of external costs of air-pollutant emissions per
tonne/km, by 2030. This would help to level the playing-field by ensuring convergence
of the emission limits applying to road transport and IWT. In contrast, with the
Conservative Option pollutants emitted by IWT per tkm remain higher than
for road transport, even in 2050. The impact of this option may be further
reduced if operators put off reconditioning their existing engines to avoid the
surplus costs of cleaner new engines. For the Innovation Option, where existing
engines are also covered, operators may on the contrary opt for engine renewal
as an alternative to investing substantial sums in their existing engines,
further bolstering the positive effect of this option.
The Conservative Option is based on an
existing international standard that does not require additional R&D from
the engine manufacturers. The Innovation Option deviates from international
standards for a small product market; however, the broader market for the
relevant technologies is large and is expected to grow significantly in the
future. An important drawback of the Conservative Option is that NOx emissions
cannot be reduced further due to the integration of SCR equipment into the
engine. On the financing side, this Option is more affordable but does not
exploit the potential of today's state of the art technology and would require
further revisions which is not conductive for establishing a stable investment
outlook.
The Innovation Option requires
significantly greater investment than the Conservative Option, but would
stimulate innovation leading to long-term cost improvements taking also into
account these would be stable standards for the longer term. The Conservative Option
requires rather limited upfront investment (only 9 % of those for the
Innovation Option), but the operational costs are higher, so total ownership costs
are comparable. The Conservative Option would also entail less administrative
burden.
Of the variants of the Innovation Option,
variant I-L ensures a better level playing-field between the small and larger
vessel operators, as they all have to reduce engine emissions. However, this detracts
from the cost effectiveness of the option and the overall investment needs. Nevertheless,
the broad scope of variant I-L means that the entry into force of the
Stage V emission standards that represent the biggest challenge from a
technological point of view can be delayed, without negatively affecting the
overall societal benefits. Variant I-E achieves the best benefit/investment
ratio, by exempting those categories where the cost/benefit ratio is rather
low, i.e. existing engines for the smaller vessels. Consequently, the overall
investment requirements for this variant are significantly lower. Furthermore,
potential technical difficulties in this category of smaller vessels, e.g. lack
of space on the smaller vessel and old engines difficult to retrofit, can be
avoided. Option I-M is a mix between the two previous options and may represent
a compromise solution.
Table 13: Multi-criteria scores for the options
   || Option I-L || Option I-E || Option I-M || Option C 
 NOx reduction (2030) || +++ (86 %) || +++ (85 %) || +++ (85 %) || + (54 %) 
 PM reduction (2030) || +++ (92 %) || +++ (90 %) || +++ (91 %) || + (58 %) 
 CO2 reduction (2030) || + (11 %) || + (11 %) || + (11 %) || 0 (0 %) 
 PN/HC/CO reduction || +++ || + || ++ || 0/+ 
 CH4 reduction || 0 || 0/- || 0/- || 0 
 Technical feasibility || -- || - || - || +++ 
 Financing feasibility || --- || - || -- || - 
 Labour market effects || +++ || ++ || ++ || + 
 Level playing-field with road emissions || yes || yes || yes || no 
 Reduction of administrative burden || -- || 0/- || - || 0 
 Benefit/cost ratio (efficiency) || 33.9 || 46.2 || 41.6 || 34.9 
 Benefit/investment ratio || 12.4 || 12 || 11.9 || 68.6 
8.4.        Marginal impact of standards for existing engines
As the Conservative Option covers only new
engines, it is useful to consider separately the extent to which the inclusion
of existing engines contributes to the overall impact of the Innovation Option.
Setting Stage IVA standards for existing
engines means that they either have to be retrofitted with DPF and SCR
equipment or replaced. As can be expected, measures for existing engines are
less effective than for new engines. The compliance costs for existing engines
represent about 50 % of the overall compliance costs for the Innovation Option.
The contribution to the overall external cost reduction, however, is only about
20 %. Nevertheless, the benefit/cost multiplier for existing engines is
still a respectable 10 to 18, depending on the variant.
Because of the lower cost/benefit ratio for
existing engines, the ratio for new engines under the Innovation Option is
higher than for the option as a whole. With a benefit/cost multiplier of 60 to 70,
measures for new engines under the Innovation Option score very high.
Table 14: Share of new engines in the cost/benefit analysis
   || Share of new engines in the cost/benefit analysis 
   || Option I-L || Option I-E || Option I-M || Option C 
 Reduction of external costs || € 18 943 m || € 19 239 m || € 19 239 m || € 14 479 m 
 Share of total external cost || 81 % || 83 % || 82 % || 100 % 
 Costs IWT industry || € 293 m || € 278 m || € 294 m || € 403 m 
 Share of total cost IWT || 44 % || 57 % || 54 % || 100 % 
 Share societal benefit || € 18 649 m || € 18 960 m || € 18 814 m || € 14 076 m 
 Benefit/cost ratio || 63.5 || 68.1 || 63.8 || 34.9 
Table 15: Share of existing engines in the cost/benefit
analysis
   || Share of existing engines in the cost/benefit analysis 
   || Option I-L || Option I-E || Option I-M 
 Reduction of external costs || € 4 425 m || € 3 994 m || € 4 143 m 
 Share on total external cost || 19 % || 17 % || 18 % 
 Costs IWT industry for retrofitting (net present value) || € 376 m || € 214 m || € 250 m 
 Share of total cost IWT || 56 % || 43 % || 46 % 
 Share societal benefit || € 4 048 m || € 3 779 m || € 3 892 m 
 Benefit/cost ratio || 10.7 || 17.7 || 15.5 
9.           Implementation aspects
9.1.        Monitoring and compliance checking
The compliance of engines with emission
standards is currently verified through the system of type-approval certificates,
which state that a certain engine (configuration) complies with the given
emission standards. The type-approval certificate is issued for all the engine
families of a certain power category as a condition of being placed on the
market. It should be noted that type approval exists only for traditional
diesel-fuelled engines in the range of 19-560 kW and for petrol-fuelled
engines up to 19 kW. For other ranges and/or technologies, certification
might be required for individual engine configurations on the basis of specific
  Member State legislation. Vessels are inspected periodically by competent
authorities in the Member States in order to verify their compliance with the
technical requirements of Directive 2006/87/EC. Currently, these inspections do
not cover engine emissions beyond verifying the existence of a certificate. The
competent authorities deliver Community or Rhine certificates allowing the
vessels to (continue to) sail.
For new engines, the current type-approval
system may need to be extended to engines operating with alternative fuels,
with a view to reducing administrative burden and barriers to innovation. For
existing engines, compliance with the new standards could be verified when the
vessel is next inspected, which would coincide with their entry into force.
Furthermore, verification of real-world
compliance may be considered under forthcoming new legislation, depending on
technological progress and the availability of verification equipment.
It may also be useful to include in the vessel
certificate information about the engine and the retrofitted equipment
installed on board, if any. This would require amendments to Annexes IV
(Model Community Inland Navigation Certificate) and V (Model Register of
Community Inland Navigation Certificates) to Directive 2006/87/EC. Also, the
European Hull Database, which contains information on IWT vessel certificates,
could be expanded to include information on vessel engines.
9.2.        Regulatory issues
The ongoing revision of the NRMM Directive also
covers the revision of standards for new engines in vessels. The options for
emission limits for new engines, as set out in the present staff working
document, are being fed into the revision process.
Directive 2006/87/EC lays down the
technical requirements with which vessels must comply to obtain a Community
certificate and be authorised to navigate. It provides a possible framework for
regulating the emissions of existing engines. The Directive already requires
that IWT propulsion engines comply with the standards referred to in the NRMM
Directive and allows for standards to be set for monitoring the emission
limits.
If Stage V standards are adopted, it is
expected that LNG-fuelled vessel propulsion will develop strongly, requiring
the establishment of a streamlined framework of technical requirements for LNG-fuelled
vessels. This requires further work on standards which can be adopted within
the framework of the Directive 2006/87/EC.
The use of alternative fuels also means
that standards need to be developed for fuel storage, transport bunkering and
safe handling. The Commission’s Clean Power for Transport Strategy will provide
the framework for the adoption of these standards.
Changes to CCNR standards should be
synchronised with EU developments in order to avoid multiple legislative
requirements on European waterways.
Furthermore, the United Nations Economic
Commission for Europe (UNECE) would need to amend the ADN rules to allow the transportation
of LNG as cargo.
9.3.        Research and development needs in support of greening
the IWT fleet
Emission reductions in IWT depend on
further R&D, in particular to adapt existing technologies to the specific
context and to lower the cost of deployment. The following non-exclusive list
of topics has been identified as requiring further R&D efforts:
·       
Clean technology needs to be developed for using
LNG as mono-fuel as well as dual-fuel in the IWT context, and/or in
gas-electric applications, in order to further reduce fuel costs and to reduce
the engine-out performance as regards NOx and PM.
·       
Stage V diesel engines need to be developed,
possibly using a combination of techniques that have been developed for smaller
engines but are currently still considered experimental for large engines.
·       
Further research on the combination of LNG with
SCR/DPF: in particular, measurements of emissions in real-life situations from various
types of dual-fuel and mono-fuel LNG engines could shed light on whether SCR
and DPF are actually necessary to achieve the required standards. Compliance
costs could be reduced if the engine-out emission levels are lower than
currently assumed.
·       
Research on technical solutions to prevent or
reduce methane emissions, for instance by using high pressure LNG technologies
or methane slip catalysts.
·       
Standardisation of SCR and DPF modules adapted
to common power ranges and types of engine and flexible enough to be installed
in various circumstances on board vessels, with a view to reducing the compliance
cost and administrative burden of enforcing new emission standards.
·       
Capacity building of system integrators that
provide Stage IV and V engines by integrating components from various
suppliers.
·       
Technologies and procedures for monitoring
compliance with emission standards.
9.4.        Financing support
Reducing emissions from IWT engines has
high societal benefits, but also significant costs for IWT operators. In view
of the benefits, it may be justified for European and national authorities to provide
financial incentives for the early adoption of standards.
The Commission services will explore the
possibilities of activating the forthcoming Horizon 2020 and Connecting
Europe Facility instruments to support investments in emission reduction
technologies and help overcome the problem of access to finance. To support the
access to finance, the possibility will be explored of creating a sub-window
for IWT under the Horizon 2020 risk-sharing instruments. Also, support will be
provided to help the sector with R&D activities in relation to emission
reduction and monitoring technologies.
The IWT sector’s Reserve Fund may also be
activated to support the greening of the fleet, subject to a revision of the
Funds Regulation planned under NAIADES II.
10.         Next steps
The Commission will further pursue the
preparatory work to establish the framework for the greening of the fleet in
the framework of NAIADES II, which identifies a coherent set of required measures
and actions.
The assessment in this staff working
document of the options for reducing the emissions from IWT will be further
refined in the framework of the preparatory work for the adoption of future
regulations. For instance, the impact of emission standards for the IWT
passenger transport sector needs to be further analysed and integrated into the
overall assessment of the policy options. The impact of, and options for, the
inclusion of auxiliary engines — also excluded from the overall assessment —
will also require further attention. The impact on labour taking into account
the SME policies could be further refined.
Further sensitivity analyses will be
carried out, for instance to analyse variations for the timing of the entry
into force of the new emission standards and of certain assumptions made to
assess the impacts and distortive effect of leaving certain existing engines
unregulated. Further reflection is also needed on procedures and technologies
for verifying compliance with emission standards.
The regulatory work, in combination with
standardisation, R&D and financing support, will lay the basis for a new
framework within which the IWT sector can regain its lead position also as
regards air pollutant emissions.
11.         Conclusion
Inland waterway transport is an important
pillar of a sustainable EU transport system, as its overall external costs are
lower than those of road transport, justifying a targeted EU policy in favour
of developing IWT further.
There is, however, a gap to be closed between
IWT and road transport in the field of air pollution, where road scores better
than IWT. The analysis done so far indicates that one of the most effective approach
may be to strengthen the legislation on emission limits whilst, however helping
the sector to overcome obstacles to innovation, including access to finance, an
issue which needs to be closely monitored in conjunction with development of
the economic outlook for the sector.
The impact of more stringent emission
standards can be mitigated by differentiating standards according to
vessel/engine categories and staggering the entry into force of the standards.
The Commission services will refine the
analysis of options for greening IWT vessels, as presented in this staff
working document, and feed this work into the various legal initiatives already
under preparation or to be launched, in particular the revision of the NRMM
Directive, the update of the technical requirements for existing inland
waterway vessel engines under Directive 2006/87/EC and the preparation of new
standards for LNG-fuelled vessel propulsion in the framework of the ADN
Directive and Directive 2006/87/EC.
ANNEX
Section 1: Changes in EU emission standards
for road heavy-duty diesel engines
Between 1992 and 2013, steady progress was
made with the reduction of air-pollutant emissions through the exhaust gases from
heavy-duty road vehicles. EURO VI standards have introduced, for the first time,
a PN emission limit to reduce emissions of the ultrafine particles that are
most harmful to human health.
 Stage || Date || Test || CO || HC || NOx || PM || PN || Smoke 
 g/kWh || 1/kWh || 1/m 
 Euro I || 1992, ≤ 85 kW || ECE R-49 || 4.5 || 1.1 || 8 || 0.612 ||   ||   
 1992, > 85 kW || 4.5 || 1.1 || 8 || 0.36 ||   ||   
 Euro II || 1996.1 || 4 || 1.1 || 7 || 0.25 ||   ||   
 1998.1 || 4 || 1.1 || 7 || 0.15 ||   ||   
 Euro III || 1999.10 EEV only || ESC & ELR || 1.5 || 0.25 || 2 || 0.02 ||   || 0.15 
 2000.1 || 2.1 || 0.66 || 5 || 0.10a ||   || 0.8 
 Euro IV || 2005.1 || 1.5 || 0.46 || 3.5 || 0.02 ||   || 0.5 
 Euro V || 2008.1 || 1.5 || 0.46 || 2 || 0.02 ||   || 0.5 
 Euro VI || 2013.01 || WHSC || 1.5 || 0.13 || 0.4 || 0.01 || 8.0×1011 ||   
 a: PM = 0.13 g/kWh for engines < 0.75 dm3 swept volume per cylinder and a rated power speed > 3 000 min-1 
Steady-state testing
                   Source: www.dieselnet.com
Section 2: Stage IIIA standard of the NRMM
Directive for Inland Waterway Vessels
Stage IIIA is the standard currently
applicable to IWT engines placed on the market and new engines installed on board
vessels for navigation. The values and dates of entry into force of the
emission limits depend on the type of pollutant and the engine category.
 Category || Displacement (dm3 per cylinder) || Date || CO || NOx + HC || PM 
 (g/kWh) 
 V1:1 || D ≤ 0.9, P > 37 kW || 2007.01 || 5 || 7.5 || 0.4 
 V1:2 || 0.9 < D ≤ 1.2 || 5 || 7.2 || 0.3 
 V1:3 || 1.2 < D ≤ 2.5 || 5 || 7.2 || 0.2 
 V1:4 || 2.5 < D ≤ 5 || 2009.01 || 5 || 7.2 || 0.2 
 V2:1 || 5 < D ≤ 15 || 5 || 7.8 || 0.27 
 V2:2 || 15 < D ≤ 20, P ≤ 3 300 kW || 5 || 8.7 || 0.5 
 V2:3 || 15 < D ≤ 20, P > 3 300 kW || 5 || 9.8 || 0.5 
 V2:4 || 20 < D ≤ 25 || 5 || 9.8 || 0.5 
 V2:5 || 25 < D ≤ 30 || 5 || 11 || 0.5 
                   Source: www.dieselnet.com
Section 3: CO2 cost comparison
between road and IWT – 2012-50
The graph below shows changes in CO2
emissions from IWT in comparison with those from road transport. In order to
determine the external costs, one tonne of CO2 is costed at € 86.60
(2011 level). The use of LNG in the Innovation Option reduces CO2
emissions by about 20 %.
Climate change costs (CO2) in
euro per 1 000 tkm
Section 4: Assumptions regarding changes in
the IWT fleet up to 2050
4.1 Expected changes in the size of the
IWT fleet 
The current trend in the number of IWT
vessels in Europe is extrapolated into the future. This involves smaller
vessels continuing to be replaced by larger (mostly 110 m) vessels.
Changes
in the inland motorised fleet for freight transport:
Size of the inland vessel fleet for
freight transport by vessel class — 2012, 2030 and 2050
 CEMT[32] || I || II || III || III || III || IV || V || VI || V || VI || TOTAL 
 Length (m) or power (kW) || ≤38.5 || 55 || 70 || 67 || 85 || 85 || 110 || 135 || Push boat 1 000-2 000 kW || Push boat ≥2 000 kW ||   
 Power (kW) || 189 || 274 || 363 || 447 || 547 || 737 || 1 178 || 2 097 || 1 331 || 3 264 ||   
 Length (m) || ≤38.5 || 55 || 70 || 67 || 85 || 85 || 110 || 135 ||   ||   ||   
 Beam (m) || 5.05 || 6.6 || 7.2 || 8.2 || 8.2 || 9.5 ||   ||   
 Tonnage (t) || 365 || 550 || 860 || 913 || 1 260 || 1 540 || 2 750 || 5 600 ||   
 2012 || 3 461 || 1 235 || 711 || 1 118 || 1 260 || 1 528 || 1 824 || 223 || 73 || 27 || 11 645 
 2030 || 1 666 || 836 || 456 || 689 || 814 || 1 090 || 2 173 || 319 || 88 || 31 || 8 162 
 2050 || 548 || 581 || 292 || 397 || 450 || 719 || 3 033 || 474 || 104 || 38 ||   
4.2 Renewal
of IWT engines — estimated totals per year
The graph
below shows estimated numbers of IWT engines that will have to be renewed in
the coming years. The first peak in the graph reflects the aftermath of the
economic crisis (postponed investments) and the need for the engines of some
vessels to be renewed so that they can continue to enter the port of Rotterdam from 2025.
4.3 Assumptions regarding
engine emission profiles
Engine emission profiles vary according to
the year of construction. Therefore, based on the number of engines in a
certain class of year of construction, weighted averages were taken to
determine the profile of NOx and PM emissions, which are the most relevant for
the external costs. The emission profiles[33]
applied in the model for the various engine base years are presented below.
 Year of construction of main engine || NOx [g/kWh] || PM[g/kWh] 
 <1974 || 10.8 || 0.6 
 1975-1979 || 10.6 || 0.6 
 1980-1984 || 10.4 || 0.6 
 1985-1989 || 10.1 || 0.5 
 1990-1994 || 10.1 || 0.4 
 1995-2002 || 9.4 || 0.3 
 2003-2007* || 9.2 || 0.3 
 >2007* || 6 || 0.2 
Section 5: Benefit/cost ratio by vessel class
The table below presents the benefit/cost
ratio of each policy option by vessel category. This is calculated by dividing
the net present value (NPV) of the total societal benefits by the NPV of the
total costs of ownership.
   || OPTION I-L || OPTION I-E || OPTION I-M || OPTION C 
 <38.5*5.05 m, 365 t, 189 kW || 1.7 || 1.5 || 1.5 || 1.5 
 55*6.6 m, 550 t, 274 kW || 2.2 || 3.7 || 2.2 || 3.7 
 70*7.2 m, 860 t, 363 kW || 3.2 || 3.2 || 3.2 || 5.4 
 67*8.2 m, 913 t, 447 kW || 4.8 || 4.8 || 4.8 || 11.2 
 85*8.2 m, 1 260 t, 547 kW || 7.4 || 7.4 || 7.4 || 19.1 
 85*9.5 m, 1 540 t, 737 kW || 7.6 || 7.6 || 7.6 || 21.1 
 110 m, 2 750 t, 1 178 kW || 33.8 || 37.5 || 37.5 || 34.5 
 135 m, 5 600 t, 2 097 kW || -39.1 (win-win) || -39.9 (win-win) || -39.9 (win-win) || 47.6 
 Push boat 1 000-2 000 kW (1 331 kW) || 11.6 || 10.2 || 10.2 || 36.0 
 Push boat >2 000 kW (3 264 kW) || -69.8 (win-win) || -70.7 (win-win) || -70.7 (win-win) || 56.4 
 TOTAL || 33.9 || 46.2 || 41.9 || 34.9 
The compliance costs for the industry are quite
low compared with the benefits of the measures for society at large. The
negative ratios shown in the table for 135 m motor vessels and push boats
> 2 000 kW indicate a ‘win-win’ situation. For these types of vessel,
which are assumed to operate 24/7, the compliance costs are negative, i.e.
there are ‘compliance benefits’.
Section 6: List of pollutants taken into
consideration for the policy options
This table provides a short description of
the pollutants that have been taken into account for analysing the new emission
limits.
 Pollutants || Description || Already in Stage IIIA? 
 CO (carbon monoxide): || Colourless, odourless and poisonous gas produced by the incomplete burning of carbon fuels. CO reduces the flow of oxygen in the bloodstream and is particularly dangerous to persons with heart disease. || Yes 
 HC (hydrocarbons): || HC are produced by incomplete combustion of hydrocarbon fuels (e.g. gasoline and diesel). HC include many toxic compounds that can cause cancer and other adverse health effects. HC also react with NOx in the lower atmosphere to form ground-level ozone, a major component of smog. The application of a diesel oxidation catalyst will reduce the HC emission. || Yes 
 NOx (nitrogen oxide): || NOx is a generic term for mono-nitrogen oxides NO and NO2 (nitric oxide and nitrogen dioxide). These are produced from the reaction of nitrogen and oxygen gases in the air during combustion, especially at high temperatures. NOx reacts to form smog and acid rain. It affects human health (cardiovascular and respiratory diseases). || Yes 
 NH3 (ammonia): || Unreacted ammonia, referred to as ammonia slip, can be a by-product of certain NOx reduction processes. An ASC (Ammonium Slip Catalyst) can be applied to prevent ammonium slip in the exhaust and this is assumed to be in place to reach standards IVA, IVB and V. The limit value of 10 ppm was taken from the Euro VI value for heavy-duty vehicles. || No 
 CH4 (methane): || The main component of natural gas. This greenhouse gas emitted, for example, by engines running on LNG, could have an impact on global warming. A methane slip catalyst is assumed to be in place to make sure that emissions remain below the limit values. The limit value of 0.5 gram per kWh CH4 was taken from the Euro VI standard for gas engines in heavy-duty vehicles. || No 
 PM (particulate matter): || PM are tiny pieces of solid or liquid matter associated with the Earth’s atmosphere. Sources can be man-made or natural. PM can adversely affect human health (lung cancer in particular) and also have impacts on the climate and precipitation. Subtypes of atmospheric PM include suspended particulate matter (SPM), respirable suspended particle (RSP; particles of 10 micrometres or less in diameter), fine particles and soot. || Yes 
 PN (particle number): || A limit on the number of particles is introduced to avoid the emission of small particles which can diffuse deeply in the lungs and be absorbed into the bloodstream, with severe negative health impacts. The PN limit is a further development of regulations on PM emissions and is additional to the gram per kWh limit for PM (mass). The PN limit is introduced for heavy-duty road vehicles at the Euro VI standard based on the steady-state test cycle. || No 
Section 7: Pollutant emission values for Stages
IIIB, IVA, IVB and V
The table below sets out the emission
limits for the standards analysed. Some standards apply to both new and
existing engines, while others apply to one group only. 
   || CO || HC || NOx || PM || PN || CH4 || NH3 
 Existing and new engines Stage IIIB || g/kWh || g/kWh || g/kWh || g/kWh || 1/kWh || g/kWh || ppm 
 75 ≤ P(*) < 130 || 5 || 5.4 (NOx + HC) || 0.14 || - || - || - 
 130 ≤ P ≤ 220 || 3.5 || 1 || 2.1 || 0.11 || - || - || - 
 220 < P ≤ 304 || 3.5 || 1 || 2.1 || 0.11 || - || - || - 
 304 < P < 600 || 3.5 || 1.0 || 2.1 || 0.11 || - || - || - 
 P ≥ 600 || 3.5 || 0.19 || 1.8 || 0.045 || - || - || - 
 Existing engines Stage IVA || g/kWh || g/kWh || g/kWh || g/kWh || 1/kWh || g/kWh || ppm 
 75 ≤ P < 130 || 5 || 5.4 (NOx + HC) || 0.03 || - || 0.5 || 10 
 130 ≤ P ≤ 220 || 3.5 || 1.0 || 2.1 || 0.03 || - || 0.5 || 10 
 220 < P ≤ 304 || 3.5 || 1.0 || 2.1 || 0.03 || - || 0.5 || 10 
 304 < P < 600 || 3.5 || 1.0 || 2.1 || 0.03 || - || 0.5 || 10 
 600 ≤ P < 981 || 3.5 || 0.19 || 1.8 || 0.03 || - || 0.5 || 10 
 P ≥ 981 || 3.5 || 0.19 || 1.8 || 0.03 || - || 0.5 || 10 
 New engines Stage IVB || g/kWh || g/kWh || g/kWh || g/kWh || 1/kWh || g/kWh || ppm 
 75 ≤ P ≤ 220 || 3.5 || 0.19 || 1.2 || 0.02 || 8.0X1011 || 0.5 || 10 
 220 < P ≤ 304 || 3.5 || 0.19 || 1.2 || 0.02 || 8.0X1011 || 0.5 || 10 
 304 < P < 600 || 3.5 || 0.19 || 1.2 || 0.02 || 8.0X1011 || 0.5 || 10 
 600 ≤ P < 981 || 3.5 || 0.19 || 1.2 || 0.02 || 8.0X1011 || 0.5 || 10 
 P ≥ 981 || 3.5 || 0.19 || 1.2 || 0.02 || 8.0X1011 || 0.5 || 10 
 New engines Stage V || g/kWh || g/kWh || g/kWh || g/kWh || 1/kWh || g/kWh || ppm 
 P ≥ 981 || 3.5 || 0.19 || 0.4 || 0.01 || 8.0X1011 || 0.5 || 10 
(*) P = installed
net propulsion power of the vessel in kW
Section 8: American Tier 4 — future standard
for marine engines
The table below shows the
emission limits for US Tier 4 standards applicable to IWT and maritime engines
from 2014.
Tier 4 Standards for Category 2 and Commercial Category 1 engines of
over 600 kW
 Maximum engine power || Displacement (L/cyl) || Model year || PM (g/kW-hr) || NOX (g/kW-hr) || HC (g/kW-hr) 
 600 ≤ kW < 1 400 || all || 2017+ || 0.04 || 1.8 || 0.19 
 1 400 ≤ kW < 2 000 || all || 2016+ || 0.04 || 1.8 || 0.19 
 2 000 ≤ kW < 3 700a || all || 2014+ || 0.04 || 1.8 || 0.19 
 kW ≥ 3 700 || disp. <15.0 || 2014 –2015 || 0.12 || 1.8 || 0.19 
   || 15.0 ≤ disp.<30.0 || 2014 –2015 || 0.25 || 1.8 || 0.19 
   || all || 2016+ || 0.06 || 1.8 || 0.19 
Section 9: Impacts of the policy measures on
NOx and PM emissions
The table below shows expected changes in the
absolute quantity (in tonnes) of NOx and PM produced by IWT up to 2050 under the
two policy options and the BAU scenario.
Changes in quantity of NOx produced by
IWT up to 2050 by policy option
 Absolute level of NOx production by IWT in Europe in tonnes per year: 
 Year || Business-as-usual (BAU) || Option I-L || Option I-E || Option I-M || Option C 
 2012 || 94 350 || 94 350 || 94 350 || 94 350 || 94 350 
 2020 || 85 422 || 57 033 || 57 323 || 56 955 || 75 246 
 2030 || 84 965 || 12 318 || 12 524 || 11 875 || 39 480 
 2040 || 97 201 || 9 959 || 9 774 || 9 565 || 33 382 
 2050 || 110 910 || 8 853 || 9 034 || 8 943 || 34 354 
 Reduction of NOx production by IWT in Europe per year as compared with BAU in absolute number of tonnes and percentage as compared with BAU: 
 Year || Option I-L || Option I-E || Option I-M || Option C 
 2020 || 28 389 || 28 099 || 28 468 || 10 177 
 2030 || 72 647 || 72 441 || 73 090 || 45 484 
 2040 || 87 242 || 87 428 || 87 636 || 63 819 
 2050 || 102 057 || 101 876 || 101 967 || 76 556 
 2020 || 33 % || 33 % || 33 % || 12 % 
 2030 || 86 % || 85 % || 86 % || 54 % 
 2040 || 90 % || 90 % || 90 % || 66 % 
 2050 || 92 % || 92 % || 92 % || 69 % 
Changes in quantity of PM produced by
IWT up to 2050 by policy option
 Absolute level of PM production by IWT in Europe in tonnes per year: 
 Year || Business-as-usual (BAU) || Option I-L || Option I-E || Option I-M || Option C 
 2012 || 5 271 || 5 271 || 5 271 || 5 271 || 5 271 
 2020 || 4 383 || 2 744 || 2 792 || 2 771 || 3 838 
 2030 || 4 129 || 318 || 407 || 363 || 1 718 
 2040 || 4 704 || 286 || 313 || 296 || 1 313 
 2050 || 5 411 || 286 || 302 || 293 || 1 310 
 Reduction of PM production by IWT in Europe per year as compared with BAU in absolute number of tonnes and percentage as compared with BAU: 
 Year || Option I-L || Option I-E || Option I-M || Option C 
 2020 || 1 639 || 1 590 || 1 612 || 544 
 2030 || 3 811 || 3 722 || 3 766 || 2 411 
 2040 || 4 418 || 4 391 || 4 408 || 3 391 
 2050 || 5 125 || 5 109 || 5 118 || 4 101 
 2020 || 37 % || 36 % || 37 % || 12 % 
 2030 || 92 % || 90 % || 91 % || 58 % 
 2040 || 94 % || 93 % || 94 % || 72 % 
 2050 || 95 % || 94 % || 95 % || 76 % 
Section 10: Marginal initial investment cost of
complying with the standards
This section provides us with the costs to
the IWT industry of compliance with the standards. The costs are given for a
single vessel, whether it has one or several engines on board, and for various
situations: new engines on new vessels, new engines on existing vessels and
engines on existing vessels that need to be retrofitted.
Marginal initial investment cost of hardware
and installation for new vessels with new engines:
 NEW ENGINES, NEW VESSELS 
 Emission standards > || Stage IIIB Diesel || Stage IVB Diesel || Stage IVB/V LNG SCR DPF || Stage V Diesel Incl R&D || Stage V Diesel Excl R&D 
 ≤38.5*5.05 m, 365 t, 189 kW || € 17 758 || € 25 969 ||   ||   ||   
 55*6.6 m, 550 t, 274 kW || € 20 213 || € 30 412 ||   ||   ||   
 70*7.2 m, 860 t, 363 kW || € 21 714 || € 33 491 ||   ||   ||   
 67*8.2 m, 913 t, 447 kW || € 21 979 || € 33 614 ||   ||   ||   
 85*8.2 m, 1 260 t, 547 kW || € 22 728 || € 34 908 ||   ||   ||   
 85*9.5 m, 1 540 t, 737 kW || € 25 835 || € 41 502 ||   ||   ||   
 110 m, 2 750 t, 1 178 kW || € 35 001 || € 55 530 || € 591 148 ||   || € 122 834 
 135 m, 5 600 t, 2 097 kW || € 60 418 || € 96 494 || € 961 237 ||   || € 216 325 
 Push boat 1 000-2 000 kW (1 331 kW) || € 45 366 || € 70 015 || € 947 515 || € 790 414 || € 146 061 
 Push boat > 2 000 kW (3 264 kW) || € 92 284 || € 147 991 || € 1 412 126 ||   || € 334 484 
Initial investment cost of hardware
installation for existing vessels with engine replacement (new engine):
 NEW ENGINES, EXISTING VESSELS 
   || Stage IIIB Diesel SCR || Stage IVB Diesel SCR DPF || Stage V LNG SCR DPF || Stage V Diesel including R&D cost || Stage V Diesel excluding R&D cost 
 <38.5*5.05 m, 365 t, 189 kW || € 22 866 || € 34 908 ||   ||   ||   
 55*6.6 m, 550 t, 274 kW || € 25 516 || € 39 693 ||   ||   ||   
 70*7.2 m, 860 t, 363 kW || € 27 130 || € 42 969 ||   ||   ||   
 67*8.2 m, 913 t, 447 kW || € 27 387 || € 43 078 ||   ||   ||   
 85*8.2 m, 1 260 t, 547 kW || € 27 935 || € 44 021 ||   ||   ||   
 85*9.5 m, 1 540 t, 737 kW || € 31 386 || € 51 216 ||   ||   ||   
 110 m, 2 750 t, 1 178 kW || € 40 724 || € 65 544 || € 724 537 ||   || € 132 849 
 135 m, 5 600 t, 2 097 kW || € 69 657 || € 112 661 || € 1 176 592 ||   || € 232 493 
 Push boat 1 000-2 000 kW (1 331 kW) || € 54 741 || € 86 422 || € 2 446 947 || € 806 820 || € 162 467 
 Push boat > 2 000 kW (3 264 kW) || € 105 790 || € 171 626 || € 4 230 662 ||   || € 358 119 
Existing vessels with existing engine
adapted to meet emission limit (retrofit):
 EXISTING ENGINES, EXISTING VESSELS 
   || Stage IVA Diesel SCR DPF || Stage V LNG SCR DPF 
 <38.5*5.05 m, 365 t, 189 kW || € 43 847 ||   
 55*6.6 m, 550 t, 274 kW || € 48 975 ||   
 70*7.2 m, 860 t, 363 kW || € 52 446 ||   
 67*8.2 m, 913 t, 447 kW || € 52 542 ||   
 85*8.2 m, 1 260 t, 547 kW || € 53 134 ||   
 85*9.5 m, 1 540 t, 737 kW || € 60 931 ||   
 110 m, 2 750 t, 1 178 kW || € 75 558 || € 739 359 
 135 m, 5 600 t, 2 097 kW || € 128 829 || € 1 200 520 
 Push boat 1 000-2 000 kW (1 331 kW) || € 102 828 || € 2 613 550 
 Push boat > 2 000 kW (3 264 kW) || € 195 261 || € 4 543 833 
Section 11 :
Long list of actions that can reduce emissions from IWT
11.1 Infrastructure measures
11.2.
Ship-related technical measures
11.3 Ship
operational measures
11.4
Organisational measures
11.5 Result
of screening of measures
[1]  Technical
support for an impact assessment on greening the inland fleet, PLATINA final
report, April 2013.
[2]  Contribution
to impact assessment of measures for reducing emissions of inland navigation,
PANTEIA, April 2013 (http://ec.europa.eu/transport/modes/inland/index_en.htm).
[3]  Notably the IVR database 2012 – http://www.ivr.nl.
[4]  External
cost calculator for Marco Polo freight transport project proposals (call 2013),
JRC Martijn Brons, Panayotis Christidis, Report EUR 25929 EN, April 2013: http://ftp.jrc.es/EURdoc/JRC81002.pdf.
[5]  Handbook
on estimation of external costs in the transport sector. Internalisation
Measures and Policies for All external Cost of Transport (IMPACT), Version
1.1. Delft, CE, 2008.
[6]  European
Shippers Council (ESC), European Barge Union (EBU), European Skippers’
Organisation (ESO-OEB), Inland Navigation Europe (INE), Promotie Binnenvaart
Vlaanderen (PBV), European Association of Internal Combustion Engine
Manufacturers (Euromot), Association for Emissions Control by Catalyst (AECC),
Community of European Shipyards Associations (CESA), European Federation for
Inland Ports (EFIP), European Sea Ports Organisation (ESPO), European Marine Equipment
Council (EMEC), etc.
[7]  http://ec.europa.eu/enterprise/sectors/automotive/documents/consultations/2012-emissions-nrmm/index_en.htm.
[8]  In particular the US EPA tier 4 standards.
[9]  Source:
Technical support for an impact assessment on greening the inland fleet,
PLATINA final report, April 2013.
[10]             For further details, see Section 2 in Annex.
[11]             The
Central Commission for the Navigation of the Rhine is an international
organisation with five Member States: Belgium, France, Germany, the Netherlands and Switzerland.
[12]             Scientific note on the Marco Polo calculator 2013 — ftp://ftp.jrc.es/pub/EURdoc/JRC81002.pdf.
[13] International Association for the representation
of the mutual interests of the inland shipping and the insurance and for keeping
the register of inland vessels in Europe.
[14]             http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2013:0017:FIN:EN:PDF.
[15] http://www.ce.nl/publicatie/medium_and_long_term_perspectives_of_inland_waterway_transport_in_the_european_union/1213.
[16]             http://www.portofrotterdam.com/en/Port/port-in-general/port-vision-2030/Documents/Port-vision-2030/index.html.
[17]             http://www.government.nl/issues/energy/green-deal.
[18]             1) standards aligned with existing international
standards and 2) standards equivalent to those of road transport.
[19]             2020 and 2035.
[20]             The certificates are valid for up to 10 years, in
accordance with Article 2.06 of Annex II to Directive 2006/87/EC.
[21]             Source: World Health Organisation.
[22] This assumption is based on desk research and expert judgement.
[23]             Marginal investment costs + operational costs for the
IWT sector over 20 years.
[24]             Marginal investment costs for the IWT sector.
[25]             From 2018, a possible date of entry into force of the
new standards, to 2050.
[26]             e.g. 2017-26 —certificates are valid for up to 10
years, in accordance with Article 2.06 of Annex II to Directive 2006/87/EC.
[27]             Marginal investment costs + operational costs for the
IWT sector over 20 years.
[28]             Marginal investment costs for the sector.
[29]             Reduction of external costs as compared with BAU —
total costs for IWT.
[30]             Reduction of external costs/total costs IWT.
[31]             Reduction of external costs/investment costs IWT.
[32] CEMT = Conférence Européenne des Ministres des Transports /
European Conference of Transport Ministers
[33]             Emission profiles for engines <1974-2003 were based
on figures from report TNO 2010 Denier van der Gon, H., Hulskotte, J. Methodologies
for estimating shipping emissions in the Netherlands. A documentation of
currently used emission factors and related activity data. BOP Report, 2010.