EU sulphur directive support bound to create inequality - Kallas

Photo: Mihkel Maripuu

Guidelines on how European Union member states can support their enterprises in meeting the requirements of the sulphur directive include state aid, but the state aid funds are completely in the hands of individual states which is bound to create certain inequality, European Commission Vice President and Transport Commissioner Siim Kallas says.

«There is no political readiness to change the regulation. That's how things stand right now and it has to be complied with,» Kallas said at an international maritime conference in Tallinn on Friday referring to the EU directive that obliges ships to start using fuels with a sulphur content of no more than 0.1 percent beginning from 2015.

Kallas noted that state aid guidelines contain provisions enabling countries to support fulfillment of the sulphur directive but that this depends on countries themselves. Although the EU is constantly battling against state aid distorting competition there is much debate on this topic and the rules are complicated.

«Inequality may happen, there is no doubt about it,» he said.

Given that the sulphur directive has to be complied with, the main question is how to proceed, Kallas said. «We need to look how to reduce negative effects. Existing financial instruments have to be used and new ways of financing have to be sought,» he said.

Positions on the adoption of new ship fuels differ in Europe, the commissioner observed. «Not the entire shipping sector says it cannot cope. Ferry operators have quietly said they have no problem. Engine producers have said they've taken this into account and adjusted their production accordingly long ago. Calculations differ, it is estimated that fuel consumption will rise by as much as 30 percent whereas others say it won't increase so much,» he said.

«We have to try and find solutions. The legislation contains a provision that appears to allow a slightly more flexible implementation,» Kallas added.