From 1 January 2020, Regulation 14 of MARPOL Annex VI provides
that the sulphur content in fuel oil used on board ships shall be
reduced from a maximum limit of 3.5% to a maximum limit of 0.5%
(the limit in emission control areas remains at 0.1%). Regulation 4
of MARPOL Annex VI permits equivalent methods of compliance
provided such methods are at least as effective in terms of
emissions reductions.
Whilst it is up to individual port state control and flag states
to implement and enforce MARPOL Annex VI, the use of Exhaust Gas
Cleaning Systems ("Scrubbers") is widely expected to be a
legitimate option as an equivalent method of compliance.
The anticipated key financial benefit for Owners that have
invested or are considering in investing in Scrubber-fitted
vessels, is that there will be substantial savings in the cost of
trading the vessels due to the expected price differential between
fuels with a high sulphur content and 'compliant' fuels
with a low sulphur
