The decision to adopt new regulations was taken in secrecy with no
prior impact assessment done
LOWER SULPHUR LEVELS IN
SHIPPING - NOT SUSTAINABLE

The global sulphur and nitrogen dioxide regu- lations of the Marpol Annex VI was a success for the IMO, but the even more stringent
regional sulphur rules of the Sulphur Emission Con-
trol Area (SECA: English Channel, North Sea and the
Baltic Sea) was a decision taken in darkness since no
impact assessment was conducted prior to the deci-
sion. The SECA regulation will lead to trade-off effects
and enormous negative competiveness implications,
which should make all politicians shiver.

Table 1 - TOTAL FUEL COST INCREASE BY INDUSTRY SECTORS IN MILLION € WITH DIFFERENT LEVELS OF PRICE OF MARINE FUEL MGO, WHERE THE MIDDLE COLUMN IS REGARDED AS THE MORE LIKELY SCENARIO

662 USD/ton
5,459
3,586
1,497
1,275
527
303
211
108
34
1
13,001

+75% = 1,160 USD/ton +150% = 1,655 USD/ton
9,553 13,647
6,275 8,965
2,619 3,742
2,230 3,186
922 1,318
530 757
368 526
189 270
60 86
3 4
22,749 32,501

Chemical industry Minerals and mining Forest industry Agriculture Soil and rock Metal industry Technology industry Food industry Forestry Textiles Sum Cost increase in percent of the total profit in the industry* 1, 5 2, 6 3, 7

* Gross profit from 2006

Source: Johan Nyström - Confederation of Swedish Enterprise with data from Swedish Maritime
Administration, SIKA and Statistics Sweden

Table 2 - TOTAL FUEL COST INCREASE BY INDUSTRY SECTOR IN RELATION TO VALUE ADDED AT DIFFERENT PRICE LEVELS FOR MARINE FUEL MGO (MARINE GAS OIL)

662 USD/ton +75% = 1160 USD/ton
Forest industry 4% 7%
Minerals and mining 9% 16%
Source: Johan Nyström - Confederation of Swedish Enterprise
+150% = 1655 USD/ton
10%
22%