The European Committee of Permanent Representatives endorsed the compromise agreed between the Council and the European Parliament regarding the directive amending directive 1999/32/EC as regards the sulfur content of marine fuels.

Emissions from shipping due to the combustion of marine fuels with a high sulfur content contribute to air pollution in the form of sulfur dioxide and particulate matter, which harm human health and contribute to acidification. The directive aims to reduce these emissions considerably.

The text as it stands now was negotiated in informal “trilogue” meetings between the Council—represented by the Danish presidency—the European Parliament and the European Commission.

The key elements of the agreement are:

• In line with the Annex VI of the MARPOL Convention, the limits for the sulfur content of marine fuels used in designated SO₂ Emission Control Areas (SECAs) will be 1% until 31 December 2014 and 0.1% as from 1 January 2015.

  The IMO standard of 0.5 % for sulfur limits outside SECAs will be mandatory in EU waters by 2020. This will also be valid for passenger ships operating outside SECAs to which the current regime of 1.5 % applies until that date. A general cap does not allow the use of marine fuels with a sulfur content of more than 3.5 % by mass within member states territory, with the exception of fuels used by vessels with alternative exhaust gas cleaning systems, the so-called scrubbers, operating in closed mode. According to the compromise, member states should endeavor to ensure the availability of the required marine fuels.

• Aid for investment costs. Since the costs of new requirements to reduce sulfur emissions could have negative effects on the competitiveness of the industry and could produce a modal shift from sea to land, member states may provide support to operators in accordance with the applicable state aid rules if such aid measures are deemed to be compatible with the treaty. Furthermore, the Commission should make full use of financial instruments that are already in place and promote the development and testing of alternative technologies to reduce emissions from ships.

• As part of the effective, proportionate and dissuasive penalties to be set by member states in implementing the directive, possible fines should at least be equivalent of the benefits deriving from the infringements to the provisions of the directive.

• In relation to reporting and review, the Commission should, based on the implementation of the directive, draw up a report by December 2013 and consider in this context the potential for reducing air pollution by ships. In the review of the Commission’s air quality policy scheduled for 2013, the Commission will consider all possibilities how to reduce air pollution, including in the territorial seas of member states.

EU ministers and lawmakers will need to approve the agreement later in the year.