According to an article published in Forbes, the IMO, the industry’s regulator, will require all ships to reduce the level of sulphur in their engine emissions from 3.5% currently to 0.5% or less from 1 January 2020.
Change to affect all sectors
It may seem an arcane rule change, but the ramifications ripple right across the oil value chain.
As well as the shipping industry, crude producers, traders, refiners and consumers will all be affected by the change.
The story is complex and Alan Gelder, Head of Oils Analysis, tells us what to expect as the rules that come into focus.
Is IMO 2020 a progressive environmental regulation?
The limit reduces the sulphur dioxide (SO2) from fuel burn emitted into the atmosphere through the ship’s funnel. There will be a lot less SO2 that finds its way into the air.
Yet the new regulation isn’t holistic. Two problems stand out.
- Many ships will comply by investing in scrubbers that strip the sulphur out of the exhaust. There is a serious concern that this diverts air pollutants directly into the sea.
- The other issue is that the regulation places no obligation on refiners to extract the sulphur at the source.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Forbes
