European Commission:

European Cruise Council 2010 European Cruise Council 2010 ConferenceConference

Brussels 14 September 2010Brussels 14 September 2010

Elena ViElena Viššnar Malinovsknar MalinovskááEuropean CommissionEuropean Commission

European Commission:

Cruise ship in Cruise ship in MediterraneanMediterranean

European Commission:

Haze over Norwegian Fjord Haze over Norwegian Fjord due to (cruise) shipsdue to (cruise) ships

European Commission:

Satellite image of ship Satellite image of ship trackstracks

European Commission:

Contribution Contribution of of ships to SOx ships to SOx 20202020

IIASA 2007IIASA 2007• Relative Relative

contribution contribution ships to air ships to air pollution on pollution on land; 2020 land; 2020 scenario scenario without without amendment to amendment to MARPOL Annex MARPOL Annex VI (1.5% VI (1.5% sulphur in sulphur in SECA; assumed SECA; assumed 2.7% sulphur 2.7% sulphur outside SECAs)outside SECAs)

European Commission:

Preliminary result: reduction Preliminary result: reduction SOxSOx(only current SECAs) (only current SECAs)

European Commission:

Preliminary results SECA Preliminary results SECA 0.10%0.10%

• Left column: annual Left column: annual reduction life years reduction life years lost with use of fuel lost with use of fuel with max 0.10% in with max 0.10% in current SECAscurrent SECAs

• Middle one: Middle one: additional gain additional gain MediterraneanMediterranean

• RightRight column: column: additional gain additional gain Black SeaBlack Sea

Dominant: PM Dominant: PM reductionreduction

Health Benefits - number of life years saved against the baseline

020406080

100120140160180

Life

yea

rs (T

hous

ands

)

Sea1

Sea2

Sea3

European Commission:

Fuel standards: ships Fuel standards: ships compared to otherscompared to others

• Maximum permitted sulphur content of fuels:Maximum permitted sulphur content of fuels:

• Ships at open sea, today:Ships at open sea, today: 45000 ppm (4.50%)45000 ppm (4.50%)• Ships at open sea, 2012:Ships at open sea, 2012: 35000 ppm (3,5%)35000 ppm (3,5%)• Ships in SECAs today:Ships in SECAs today: 10000 ppm (1.00%)10000 ppm (1.00%)• Ships at open sea, 2020:Ships at open sea, 2020: 5000 ppm (0.50%)5000 ppm (0.50%)• Ships in SECAs, 2015:Ships in SECAs, 2015: 1000 ppm (0.10%)1000 ppm (0.10%)• Ships at berth EU ports, now:1000 ppm (0.10%)Ships at berth EU ports, now:1000 ppm (0.10%)

• Trucks, cars, busses:Trucks, cars, busses: 10 ppm (0.001%)10 ppm (0.001%)• Inland shipping, trains, 2011:Inland shipping, trains, 2011: 10 ppm (0,001%)10 ppm (0,001%)

Direct link fuel quality and sulphur content and PM!Direct link fuel quality and sulphur content and PM!

European Commission:

GHG: ships compared to other GHG: ships compared to other transport sectorstransport sectors

• EC action on transport GHG• Aviation included in EU ETS proposed 2006,

agreed 2008• ‘Low carbon fuel standard’ proposed 2007,

agreed 2008• ‘CO2 and cars’ proposed 2007, agreed 2008• Light Duty Vehicles (vans) (proposed October

2009)• Car Labelling (under preparation)• Heavy Duty Vehicles (Trucks) (under preparation)• Maritime Transport (if required)

European Commission:

Commission planningCommission planning

• Proposal to amend Directive Proposal to amend Directive 1999/32/EC on sulphur in fuel end 1999/32/EC on sulphur in fuel end 2010 (especially to implement 2010 (especially to implement amendments to MARPOL Annex VI)amendments to MARPOL Annex VI)

• No decision yet on EU measures to No decision yet on EU measures to reduce greenhouse gas; potentially reduce greenhouse gas; potentially end 2011?end 2011?

European Commission:

Air pollution: relevant for Air pollution: relevant for Cruise shipsCruise ships

• Amendment aims to align with new Amendment aims to align with new standards and definitions adopted by standards and definitions adopted by IMO and ISO, including the 2008 IMO and ISO, including the 2008 amendment to MARPOL Annex VI to amendment to MARPOL Annex VI to require use of fuel with 0.10% in SECAs require use of fuel with 0.10% in SECAs as of 2015.as of 2015.

• The EU fuel requirements for passenger The EU fuel requirements for passenger ships outside SECAs (1.5% sulphur) ships outside SECAs (1.5% sulphur) under consideration.under consideration.

• Clarification of applicability of this Clarification of applicability of this provision to cruise ships.provision to cruise ships.

GHG: ‘Global action’ - difficult progress

• Full support to global measures developed through IMO

• Broad coverage of emissions, no distortion of competition between ships

• Blockage in IMO: political problem - not technical

• Difficulty of agreeing: cap, exemptions, use of revenue, institutional arrangements, access to credits, penalties

• Need to agree: monitoring/verification ruels, auctioning rules, global registry, administrating bodies, enforcement

European Commission:

Key messagesKey messages

• No action is not a solution No action is not a solution • Industry should be part of the solutionIndustry should be part of the solution• Understanding of the economic Understanding of the economic

sitution but health and environment sitution but health and environment ask for further actionask for further action

• Each sector needs to contributeEach sector needs to contribute• The Commission is traditionally open The Commission is traditionally open

for dialoguefor dialogue

European Commission:

Questions: Questions:

• Firstly, and assuming nobody likes the look and smell of Firstly, and assuming nobody likes the look and smell of black smoke coming out of the stack from ships (leave black smoke coming out of the stack from ships (leave alone during the romantic experiences of cruise shipping), alone during the romantic experiences of cruise shipping), to what extent has the industry been implementing to what extent has the industry been implementing abatement equipment or clean fuel like LNG? Are you abatement equipment or clean fuel like LNG? Are you considering doing so for the purpose of obtaining a considering doing so for the purpose of obtaining a competitive advantage, and if not, why? competitive advantage, and if not, why?

• Secondly, and also for the purpose of avoiding confusing in Secondly, and also for the purpose of avoiding confusing in measures applying in EU waters, would industry support the measures applying in EU waters, would industry support the full alignment of IMO rules into EU law, and if not, why? full alignment of IMO rules into EU law, and if not, why?

• Finally, and accepting that MARPOL VI might come with Finally, and accepting that MARPOL VI might come with significant albeit warranted costs, what can the European significant albeit warranted costs, what can the European Commission do to support a transition to low emission Commission do to support a transition to low emission cruise ships.cruise ships.