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Whitepaper

Marine Emissions: the IMO Says 2020, Where Do You Stand?

The October 2016 decision by the International Maritime Organization to implement strict sulphur emissions from 2020 will transform the shipping industry and bunker fuel markets in the longer term, though it signals uncertainty and some big swings in price relationships for crude oil and refined products as we near 2020.

In this paper, we look at the forthcoming transition and some implications for refiners.

For more than a decade now, the Marine Environment Protection Committee (MEPC) of the UN’s International Maritime Organization (IMO) has been planning an orderly reduction in the global level of sulphur and nitrogen emissions from marine sources.

Early mandates saw emissions sharply lowered in some environmentally sensitive regions, or Emissions Control Areas (ECAs), however the majority of global waters have continued operating with a level of stack emissions equivalent to burning 3.5% sulphur residue bunker fuel (HSFO) with no emissions abatement.

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Marine Emissions: the IMO Says 2020, Where Do You Stand?

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