2. Lower-sulphur fuels and air
emissions
Fuel costs are also being affected by the requirement
of the International Maritime Organization (IMO)
International Convention for the Prevention of Pollution
from Ships (MARPOL) Annex VI, governing air pollution
and Emission Control Areas (ECAs) in the European
Union and North America (for additional information
see chapter 5). In 2020, the amount of sulphur allowed
in marine fuels will be lowered from 3.5 per cent to
0.5 per cent globally and from a current 1.0 per cent
to 0.1 per cent in 2015 for ships sailing though ECAs.
Restricting sulphur content in marine fuels and
requiring less-polluting fuels, namely distillate grade, is
crucial to reducing air pollution and its adverse effects
on human health and the environment. In this respect,
it is worth noting that the 7 per cent (or €58.4 billion)
contribution of shipping emissions to the total health
costs in Europe in 2000 is likely to increase to 12 per
cent (€64.1 billion) in 2020, while in the ECAs of the
Baltic Sea and North Sea, a drop in the sulphur dioxide
emissions will likely cause a 36 per cent reduction in
Europe’s public health costs arising from international
shipping. In value terms this implies a cost reduction
from €22 billion in 2000 to €14.1 billion in 2020
(European Commission, 2013).