Brussels, 25/05/2012 (Agence Europe) - It would be somewhat of an understatement to say that the proposal to reduce the carbon content of marine fuels (see EUROPE 10620) has disappointed business and industry, which are worried in advance at the effect this will have on competitiveness, through both the additional costs and the expected distortion of competition with this agreement.
The European Organisation for Forwarding and Logistics (CLECAT) and the Confederation of European Paper Industries (CEPI), are unhappy that a 0.1% sulphur limit was agreed from 2015 in Sulphur Emission Controlled Areas (Baltic Sea, North Sea and Channel) when in the rest of European waters a limit of 3.5% will apply until 2020 (and in the rest of the world until 2015).
CLECAT Director General Nicolette van der Jagt said: “This agreement will increase costs for industry, therefore impacting on citizens' wealth, without necessarily delivering sustainable result; ensuring a healthy economic and social environment for its citizens. Sulphur emissions have to be reduced but in a cost-efficient and fair way”. CLECAT regrets that, in these times of economic difficulty, the EU has not taken the views of the European business and industry into account and “has not responded to the joint industry call” to postpone the strict sulphur limits to allow investments in mass production of low sulphur fuel and development of cost-efficient abatement technologies.
Exactly the same complaints were made by CEPI, which has continuously drawn the attention of the European Parliament and the member states towards the huge impact this agreement will have on the companies operating in the North of Europe. Stating yet again that the agreement will mean “an additional cost of around €4 billion per year according to the most recent studies”, CEPI says the scarcity of low-sulphur fuel and lack of reliable abatement methods will means a cost hike of 20-45% for the paper industry, in addition to a 50-80% price increase in marine fuels. On top of that, further market and competition distortion within the EU and with foreign competitors outside the EU is to be expected.
“Companies will have to revert to member state support in order to be able to comply with the prescribed limits within such a short period of time. But state aid will not compensate for increased costs and the resulting loss of competitiveness”, said Teresa Presas, CEPI Director General. (AN/transl.rt)