- MARPOL Annex VI, the global Sulphur cap will be reduced from current 3.50% to 0.50%, effective from 1 January 2020
- Progressive reductions in NOx emissions from marine diesel engines installed on ships
- By 30 August 2017, MRV (Monitoring, Reporting, Verification) companies shall submit to an accredited MRV shipping verifier a monitoring
- From 1st January 2018, MRV companies shall monitor for each of their ship CO2 emissions, fuel consumption and other parameters, such as distance travelled, time at sea and cargo carried on a per voyage basis,
- From 2019, by 30 April of each year MRV companies shall submit to the Commission a satisfactorily verified Emissions report for each of the ships
- From 2019, by 30 June of each year MRV companies shall ensure that, all their ships having performed activities in the precedent reporting period and visiting EEA ports, carry on board a document of compliance issued by THETIS MRV.
- Option 1: Purchase cleaner, low-sulphur fuel
The new MGOs can cost up to 50% more than the HSFO oils already being used.
- Option 2: Install Exhaust Gas Cleaning Systems, known as “Scrubbers”
Shipping lines can still choose to run their vessels on HSFO fuels. To meet the low sulphur regulations of 0.5%, Scrubbers can be used.
Installing scrubbers can cost between $5-$10 million. Due to this, some older ships have already started to be scrapped, with more ships likely to go to the shipping graveyard towards the end of 2019.
- Option 3: Switch to Liquefied Natural Gas (LNG)
Ships with LNG tanks fitted will take up more physical space, these new tanks could take up almost 3% of a vessel’s TEU slots. As a result, this will reduce the amount of shipping containers that can be carried.Also, due to the likely drastic increase in demand for LNG fuels, it has been reported that the price of LNG may increase as much as 50%.