After much deliberation and expensive consultancy work, the IMO has finally decided that the Global Cap on ship’s fuel oil sulphur be set at 0.5% max. This limit shall come into force from 1 January 2020.
Furthermore, in a parallel action, the Chinese authorities have decided to implement the 0.5% sulphur limit at 11 major Chinese ports with effect from 1 January 2017. These include Shenzen and Shanghai. It would be interesting to see if this is followed by others.
As always, this 2020 limit will apply to signatory states. We have not yet seen the full list of signatory states, but at the last round in the application of Annex VI we noted that Russia was a significant non-signatory.
The implications of this global cap are very significant and will have a number of unintended consequences which will only emerge after the passage of time.
Read the full article by Charles Daly
Chairman of Channoil Consulting Limited