New maritime fuel directive would "weaken" Finnish forest sector

21 July 2011

The Finnish Forest Industries Federation (FFIF) has reacted with disappointment to a new European Commission document which confirms that the maximum sulphur content of maritime fuels is likely to be lowered to 0.1% in the Baltic Sea by 2015.

The move, says FFIF, would increase the Finnish forest industry’s maritime transport costs by at least €200m.

The publishing of the European Commission’s proposed amendment to the Sulphur Directive incorporates a recommendation by the Internatonal Maritime Organisation for maximum sulphur contents without reservations.

The recommended sulphur levels for the Baltic Sea, English Channel and North Sea regions are more stringent and come into force 10 years earlier than in other sea areas.

The Commission has also released reports on the Directive’s consequences, as well as possible alleviating measures such as subsidies for a transition to liquified natural gas or the adoption of sulphur extractors.

“This decision poses a significant threat to the competitiveness of the export-dependent Finnish forest industry because over 90% of the industry’s products are shipped overseas,” said FFIF.

It said Finland would bear higher costs compared to competitior countries because of its greater distance to the main markets.

“The effectiveness of subsidies is questionable and no concrete measures were outlined.”

FFIF wants the measures to be postponed until 2025.