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Region should follow Hong Kong’s example on cleaner fuel for vessels

Jul 8th, 2015
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SCMP Editorial

Hong Kong has taken another positive step in fighting air pollution. Since July 1, ocean-going vessels have been required to switch to low-sulphur fuel within local waters under a new law to improve air quality. Emissions of sulphur and respirable suspended particles of 10 microns or less are expected to fall by 12 per cent and 6 per cent as a result. The health risks for those living near container ports and coastal areas will also be lowered.

Credit goes to the government and environmentalists for making this happen. Emissions at sea are known to be a major cause of air pollution. Yet weak marine shipping laws mean the problem has not previously been dealt with seriously. It was not until recent years that vessels were required to switch to less-polluting fuels while berthing in the city under a pilot scheme. This became mandatory under the new law, which allows for a maximum jail term of six months and a HK$200,000 fine for non-compliance.

But air pollution knows no boundaries. Just like the need for collective efforts to keep the neighbourhood clean, it does not help when other cities in the Pearl River Delta are not doing their part. It’s time we convinced our neighbours to do the same and adopt a region-wide fuel standard for vessels. That would mean establishing an emissions control area, within which vessels have to use low-sulphur fuel.

The importance of getting Guangdong and others on board to improve air quality has long been recognised. The joint emission reduction targets set out in the Hong Kong-Guangdong Cooperation Conference, a forum on cross-border issues, are an example. Indeed, the issue of reducing emissions by vessels in the delta region was raised at the conference a few years ago, with both sides pledging to further explore the feasibility of adopting joint fuel standards. Now that we have made efforts to clear up our skies, the next step is to urge our neighbours to follow suit. This is not just for Hongkongers, but also for the tens of millions of people living in the delta region.

Berthing ships must use fuel with low sulphur under new Hong Kong law

Jul 2nd, 2015
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New law forces all vessels berthing in the city to switch to cleaner fuel, but now the focus shifts to consistency throughout the Pearl River Delta

Berthing ships must use fuel with low sulphur under new Hong Kong law

Berthing ships must use fuel with low sulphur under new Hong Kong law

An anti-pollution law under which all ocean-going vessels must be powered by low-sulphur fuel while berthing in Hong Kong took effect yesterday, accompanied by calls to look ahead to the next step – pressuring other regional ports to follow suit.

The city now makes it compulsory for berthing ocean-bound vessels to use fuel with sulphur content no higher than 0.5 per cent, lower than the international cap of 3.5 per cent.

In return, shipowners save half of their berthing fees through government subsidies.

The move is expected to cut emissions of sulphur and respirable suspended particles of 10 microns or less by 12 per cent and 6 per cent, respectively, according to the Environmental Protection Department – improvements in air quality that one think tank estimates will lead to 44 per cent fewer premature deaths each year.

With the new law now in place, it is time to shift the focus to setting up an emissions control area (ECA) for the Pearl River Delta region, said Simon Ng Ka-wing, chief research officer for the think tank, Civic Exchange.

“There needs to be a level playing field for the entire region,” Ng said. “Shenzhen already has an incentive scheme and hopefully Guangzhou will be pressured to do something, too.”

He said the region’s emissions data was being updated and would provide more justification for an ECA.

Civic Exchange helped pave the way for a local Fair Winds Charter, launched in 2011.

Under the voluntary scheme, 3,000 ocean vessels from 17 freight lines switch to low-sulphur fuel at berth each year, equivalent to roughly 10 per cent of total annual port calls.

With the new mandate, all 30,000 ocean-going ships that berth in Hong Kong yearly must comply, the department said.

Retired Liner Shipping Association chairman Peter Ng Yee-chun agreed a region-wide fuel standard would make things easier for shipping operators.

If an ECA was the ultimate goal, he said, all ships in the region should adopt a consistent standard of 0.1 per cent sulphur in their fuel, the latest cap for recognised ECAs.

This idea was echoed by Shippers’ Council chairman Willy Lin Sun-mo. “It would be much better for shippers, if Shenzhen or Guangzhou could adopt the same regulation for a consistency of regional standards,” he said.

Subsidies to help the industry comply end in 2018, and the question is how to transfer the cost, eventually, to the consumer. Current oil prices make 0.5 sulphur fuel 20 per cent more expensive than regular heavy fuel.

“All parties need to shoulder the cost burden,” Peter Ng said.

Law on cleaner marine fuel a step forward in fight against air pollution

Mar 26th, 2015
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26 March 2015

Activists tend to remember landmark victories in the fight against air pollution. But most people would be surprised to hear that it is 25 years since the government took a policy decision which, according to researchers, made a difference to air quality overnight. That was to impose a cap on the sulphur content of industrial fuel used in factories. The year was 1990. Ever since, sadly, other pollution sources have undermined air quality. But a similar landmark victory may not be far off, according to a think tank that specialises in environmental issues. Simon Ng Ka-wing, chief research officer at Civic Exchange, says this is likely when it becomes mandatory for ocean-going vessels to use low-sulphur marine diesel fuel when berthing in Hong Kong, under a proposed law that activists hope will take effect as early as July. Although ship emissions account for only 18 per cent of sulphur dioxide in the city’s air, they penetrate residential areas easily.

As with the factories in 1990, Ng expects the policy to have a dramatic effect because sulphur emissions will be cut by almost 80 per cent immediately. This is the kind of boost to its environmental credentials the city needs, given the importance of good air quality in attracting the talented people and tourists so important to its economy. The latest data shows that measures such as phasing out dirty diesel vehicles and buses that fail even outdated European emission standards are having a welcome impact. But average concentrations of pollutants remain too high, especially for ozone.

The ultimate goal of tackling marine diesel emissions in Hong Kong is a recognised clean-fuel emissions control area (ECA) for the Pearl River Delta, like those in North America, the Baltic Sea and the North Sea. That would depend on participation of Guangdong ports and support from Beijing in the International Maritime Organisation. Meanwhile, if a mandatory cap were to have the predicted dramatic effect, it should prompt the government to redouble efforts to upgrade local bus and truck fleets to combat roadside air pollution.

http://www.scmp.com/comment/insight-opinion/article/1747352/law-cleaner-marine-fuel-step-forward-fight-against-air

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Clean marine fuel a step forward

Mar 26th, 2015
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Activists tend to remember landmark victories in the fight against air pollution. But most people would be surprised to hear that it is 25 years since the government took a policy decision which, according to researchers, made a difference to air quality overnight. That was to impose a cap on the sulphur content of industrial fuel used in factories. The year was 1990. Ever since, sadly, other pollution sources have undermined air quality. But a similar landmark victory may not be far off, according to a think tank that specialises in environmental issues. Simon Ng Ka-wing, chief research officer at Civic Exchange, says this is likely when it becomes mandatory for ocean-going vessels to use low-sulphur marine diesel fuel when berthing in Hong Kong, under a proposed law that activists hope will take effect as early as July. Although ship emissions account for only 18 per cent (CTA: actually 50% SO2 in 2012 !) of sulphur dioxide in the city’s air, they penetrate residential areas easily.

As with the factories in 1990, Ng expects the policy to have a dramatic effect because sulphur emissions will be cut by almost 80 per cent immediately. This is the kind of boost to its environmental credentials the city needs, given the importance of good air quality in attracting the talented people and tourists so important to its economy. The latest data shows that measures such as phasing out dirty diesel vehicles and buses that fail even outdated European emission standards are having a welcome impact. But average concentrations of pollutants remain too high, especially for ozone.

The ultimate goal of tackling marine diesel emissions in Hong Kong is a recognised clean-fuel emissions control area (ECA) for the Pearl River Delta, like those in North America, the Baltic Sea and the North Sea. That would depend on participation of Guangdong ports and support from Beijing in the International Maritime Organisation. Meanwhile, if a mandatory cap were to have the predicted dramatic effect, it should prompt the government to redouble efforts to upgrade local bus and truck fleets to combat roadside air pollution.

Source URL (modified on Mar 26th 2015, 10:06am): http://www.scmp.com/comment/insight-opinion/article/1747352/law-cleaner-marine-fuel-step-forward-fight-against-air

SEE WHAT HK GOVERNMENT Pass- the-Buck EPD HAD TO SAY

Mar 17th, 2015
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Download (PDF, 411KB)

Government should rethink blanket incentives for shippers with new regulation due soon

Mar 5th, 2015
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Simon Ng wonders at the need for incentives for shippers to comply with stricter emission standard, when the industry itself is ready for change

In last week’s budget speech, Financial Secretary John Tsang Chun-wah proposed to extend a government incentive scheme to March 2018 that halves the port facilities and light dues charged on ocean-going vessels that switch to low-sulphur fuel while at berth in Hong Kong. The extension is, the government explained, a means to help the shipping industry’s transition to more stringent fuel regulation that is expected to come into effect later this year.

Vessels will be required by law to burn marine fuel with a sulphur content of 0.5 per cent or less, slashing at-berth sulphur dioxide and particulate emissions by up to 80 per cent.

Given the maritime industry’s contribution to Hong Kong’s economy, the proposal is a calculated attempt to prevent cost-conscious ship operators from going to Shenzhen and other neighbouring ports where regulation on marine fuel quality is lacking. Despite assurances from major shipping lines that they have no plans to bypass Hong Kong, the government is taking no chances.

It is debatable whether tighter environmental regulations will drive ships away. The government’s concerns could be fuelled by Hong Kong’s diminishing competitive advantage over neighbouring ports. That said, to think that introducing higher environmental standards will inevitably make Hong Kong’s port less competitive is missing the bigger picture.

There is growing evidence that the maritime sector has become more responsive in recent years to the call for better environmental performance. For example, Koji Sekimizu, secretary general of the International Maritime Organisation, put forward in 2012 the concept of a sustainable maritime transport system. This was a wake-up call at the highest level that, despite its significant contribution to trade and economic growth, the sector has a major responsibility to reduce its environmental footprint.

Around the world, national, regional and local governments are working tirelessly together with the industry for innovative solutions – technical, financial and regulatory – to improve the energy efficiency of ships, and to reduce air pollution and greenhouse gas emissions. Here in Hong Kong, the shipping industry voluntarily initiated the Fair Winds Charter in 2011. We are expecting ship emission control regulation this year, and are pushing for the same across the region. The tide has turned.

The government’s generosity in light of impending regulation has therefore raised a few eyebrows. Questions have been asked as to why it is planning to give away public money to polluters, who are only months away from complying with regulation with or without government incentives.

If the government insists on doling out the money, the scheme would only make sense with different incentives. Vessels meeting the regulation requirements should get a standard rebate, whereas carriers willing and ready to take the next step, such as burning fuel with 0.1 per cent sulphur content, should be rewarded with a higher rebate. This way, all industry players would receive some financial support from the government for switching fuel, the front runners would be motivated to reach for a higher standard, and Hong Kong as a whole would benefit from a green maritime sector in the long run.

Simon Ng is chief research officer at Civic Exchange
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Source URL (modified on Mar 5th 2015, 12:02pm): http://www.scmp.com/comment/insight-opinion/article/1729936/government-should-rethink-blanket-incentives-shippers-new

Ships face lower sulphur fuel requirements in emission control areas from 1 January 2015

Dec 23rd, 2014
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http://www.imo.org/en/MediaCentre/PressBriefings/Pages/44-ECA-sulphur.aspx#.V3aiJWh96Hs

Ships trading in designated emission control areas will have to use on board fuel oil with a sulphur content of no more than 0.10% from 1 January 2015, against the limit of 1.00% in effect up until 31 December 2014.

The stricter rules come into effect under the International Convention for the Prevention of Pollution form ships (MARPOL) Annex VI (Regulations for the Prevention of Air Pollution from Ships), specifically under regulation 14, which covers emissions of Sulphur Oxides (SOx) and particulate matter from ships. These requirements were adopted in October 2008 by consensus and entered into force in July 2010.

The emission control areas established under MARPOL Annex VI for SOx are: the Baltic Sea area; the North Sea area; the North American area (covering designated coastal areas off the United States and Canada); and the United States Caribbean Sea area (around Puerto Rico and the United States Virgin Islands).

Outside the emission control areas, the current limit for sulphur content of fuel oil is 3.50%, falling to 0.50% m/m on and after 1 January 2020. The 2020 date is subject to a review, to be completed by 2018, as to the availability of the required fuel oil. Depending on the outcome of the review, this date could be deferred to 1 January 2025.

Ships may also meet the SOx requirements by using gas as a fuel or an approved equivalent method, for example, exhaust gas cleaning systems or “scrubbers”.

Emissions from Maritime Transport

Dec 11th, 2014
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Air pollutant emissions from maritime transport can be transported over long distances and thus increasingly contribute to air quality problems in the EU. The Thematic Strategy on air pollution from 2005 concluded that sulphur emissions from shipping were forecast to exceed those from all land-based sources in the EU by 2020 (Source: Clean Air for Europe impact assessment, p31, 2005). Further action is therefore needed to improve human health and the environment.

Directive 1999/32/EC regulates sulphur emissions from ships by limiting the maximum sulphur content of marine fuel. This Directive was amended by Directive 2005/33/EC that designated the Baltic Sea, the North Sea and the English Channel as sulphur emission control areas (SECAs) and limited the maximum sulphur content of the fuels used by ships operating in these sea areas to 1.5% (frequently asked questions). This fuel standard applies also to passenger ships operating on regular service outside SECAs. However, already at the time of adoption the SECA fuel standard was widely recognised as being insufficient to address observed environmental impacts from shipping.

Due to the international dimension of the shipping industry, environmental, security and safety standards are developed by the International Maritime Organization (IMO), a United Nation’s specialized agency. Directive 1999/32/EC as amended transposes provisions of Annex VI of IMO’s Marine Pollution Convention, MARPOL 73/78. The Commission called for action at the International Maritime Organization (IMO) to further reduce emissions and in October 2008 an amended Annex VI was adopted that further reduces the maximum sulphur content of marine fuels inside and outside of SECAs.

The European Parliament and the Council requested the Commission to report on the implementation of the Directive and to consider submitting a proposal for an amendment. Following this request and considering the development at the IMO in 2008, the Commission carried out a review of the Directive and adopted a proposal for its revision on 15 July 2011. Finally, Directive 2012/33/EU amending Directive 1999/32/EC was published in the Official Journal of the European Union on 17 November 2012. The deadline for bringing Member States’ legislation in compliance is 18 June 2014 and the amended Sulphur Directive will enter into force 1 January 2015.

Information on EU policies on policies to reduce greenhouse gas emissions from shipping can be found here.

http://ec.europa.eu/environment/air/transport/ships.htm

Shenzhen in 200m yuan push for green shipping

Sep 26th, 2014
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Thursday, 25 September, 2014

Jing Yang

Mainland city plans to spend 200m yuan a year on cash rebates to encourage firms to switch to low-sulphur fuel while at berth to cut emissions

The Shenzhen government plans to spend 200 million yuan (HK$252.7 million) a year on cash rebates to encourage shipping lines to switch to low-sulphur fuel while at berth, following initiatives taken by Hong Kong, as both cities attempt to rein in vessel exhaust emissions.

The Shenzhen government will subsidise between 75 and 100 per cent of the extra costs incurred in the voluntary at-berth switch to fuel with a maximum 0.5 per cent sulphur content, which is more expensive than regular marine bunker that contains 3 to 3.5 per cent sulphur. The scheme will take effect next month and last for three years.

“We are learning from the experiences in Hong Kong, where companies have volunteered to switch to low-sulphur fuel and the government provides subsidies for extra costs incurred,” Dong Yanze, director of the Construction Management Office of Shenzhen municipality’s Transport Commission, said yesterday.

In 2011, 19 shipping firms came together in Hong Kong to voluntarily switch to low-sulphur fuel at berth, bearing the entire extra bunker costs – an average of US$2 million a year – themselves. Known as the Fair Winds Charter, the endeavour did not receive cash subsidies from the city’s government until September last year, when a three-year grant was rolled out that offset up to 50 per cent of the switch costs.

Bunker bills generally account for 20 to 30 per cent in the operational costs of shipping lines, which have been hit by heavy losses in a protracted industry slump.

The Fair Winds Charter also led to a legislative effort in Hong Kong. The Department of Justice is drafting a bill to mandate a switch to low-sulphur fuel for all ocean-going vessels docking at the city’s terminals, the first such legislation in Asia.

The government initially planned to table the bill to the Legislative Council before the summer recess, aiming for the legislation to come into effect early next year.

“There has been [at least a half-year] delay in the drafting of the legislation,” Undersecretary for the Environment Christine Loh Kung-wai said. “We hope the drafting will finish by the end of the year so that we could put it to Legco as soon as possible. We still want the legislation to come into effect within 2015.”

While mooring at ports, cargo ships contribute to 66 per cent of sulphur dioxide emissions in Shenzhen. In Hong Kong, the proportion is 78 per cent, government statistics show.

Shenzhen was pushing for a sulphur emission control area that would cover the Pearl River Delta by 2018, said Li Shuisheng, deputy director of Shenzhen’s Human Settlements and Environment Commission.

“We hope to set an example for other coastal ports in China and that our efforts will be acknowledged by the central government, eventually leading to nationwide policies,” he said.

An emission control area, which could cover either sulphur or nitrogen dioxide or both, is a designated area that must comply with emission caps set by the International Maritime Organisation under the International Convention for the Prevention of Pollution from Ships. The action, once approved by the maritime body, would be non-discretionary, with emission standards more stringent than in non-emission control areas.

There are currently three such areas in the world – in the Baltic Sea, the North Sea and North America. Asia has lagged behind despite its status as a centre of global shipping traffic.

The steps leading up to the declaration of an emission control area are long and arduous. Hong Kong was collaborating with Shenzhen towards that aim, Loh said.

“2018 is a very aggressive date,” she said. “We are very supportive of the idea to set up [such an area]. But there is a lot of work involved.”

Twenty-three shipping lines signed a joint Green Shipping Shenzhen Declaration yesterday, pledging to contribute to cleaning up the air in the city. It remains unclear how many shipping lines will sign up for the scheme as implementation measures are still being formulated. They are expected to come out by October 1.

http://www.scmp.com/business/economy/article/1599745/shenzhen-200m-yuan-push-green-shipping

American cruise lines to control SO2 and PM

Jan 12th, 2014
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from Airclim’s Acid News, Dec 2013 issue:

Cruise line Carnival has announced an agreement with US and Canadian agencies to invest USD180 million in emission-reduction technology on 32 of its cruise ships to comply with the Emission Control Area (ECA) standards.

The ECA sulphur standards require ships operating within 200 nautical miles of the US or Canadian coasts to use fuel containing less than 0.1 per cent sulphur by 2015. A 1 per cent sulphur limit on fuel took effect in August 2012.

Under the agreement the company will install scrubbers and diesel particulate filters on its ships to cut emissions of sulphur dioxide (SO2) and fine particulate matter (PM), pollutants that exacerbate smog and damage human health.

The agreement follows a similar deal between the US Environment Protection Agency and the other major cruise line operating in the country, Royal Caribbean, which also called for the installation of pollution controls on a trial basis, in lieu of using lower sulphur fuel.

Source: Car Lines No 5, October 2013

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