A memorandum of a CGEP Global Energy Dialogue in London on February 20, 2017 sheds light on the complex issues facing the marine transport sector as it comes up against the 2020 IMO sulfur regulations.
Senior Research Scholar Antoine Halff explores the outlook for marine bunkers and the impact of new environmental restrictions to come into effect January 2020 that aim to reduce sulfur oxide (SOx) emissions from ships.
By the International Maritime Organization’s (IMO) reckoning, some 5.5 million barrels of oil — 6% of world demand — get burned daily as bunker fuel on the high seas. Those bunkers are the world’s last big sink for high sulfur residual fuel oil (HSFO), the "bottom of the barrel,” as air-emission rules for ships have to date remained relatively loose. Tighter sulfur regulations may soon change that, with far-reaching impacts for the shipping industry, energy markets and air emissions from ships.