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Mon 28 Jan 2013, 13:44 GMT

EC approves changes to cleaner ship scheme


Amendments are said to provide owners with an incentive to use cleaner fuel in ships.

The European Commission (EC) has said that amendments to an existing Finnish scheme supporting investment in cleaner ships are in line with EU state aid rules. In particular, it concluded that the amendments are aimed towards providing ship owners with incentives to use less polluting fuel, ahead of the entry into force of EU standards.

Joaquín Almunia, Commission Vice President in charge of competition policy, said: "This Finnish scheme demonstrates how the current state aid rules can be used for encouraging the maritime industry to adapt to stricter environmental rules ahead of their entry into force."

The EC authorized the initial Finnish scheme in 2011. The following year, it adopted a new Sulphur Directive. The amendments notified by the Finnish authorities aim at adapting the existing scheme to the more stringent rules on sulphur limits in marine fuel that will apply as from 1 January 2015 in the Sulphur Emission Control Area (SECA), which includes the English Channel, the North Sea and the Baltic Sea.

Changes made to the scheme allow owners, under certain conditions, to finance the acquisition of new ships or the adaptation of old ships, provided they operate under stricter environmental standards than currently in force in the EU.

"The aid provides a real incentive and is necessary to achieve the intended objective. It will result in bringing forward by up to two years the use of less polluting fuel in ships," said the EC.

"No aid will be granted after the entry into force of the new standards," the EC added.

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