Sulphur Directive approval to cost Finnish forestry sector €200m

Talks between the EU Commission, the European Parliament and the Council of Europe on May 16 concluded in a settlement that will cap maximum sulphur content of ship fuels at 0.1% as of the beginning of 2015.

"This decision will load a minimum of €200m in annual extra costs on the Finnish forest industry," said Timo Jaatinen, director-general of the Finnish Forest Industries Federation.

"This is equal to the average yearly earnings of more than 5,000 forest industry employees."

The restrictions will apply in the Baltic Sea, North Sea and the English Channel.

The maximum sulphur content will be reduced even further to 0.5% in the densely-populated Mediterranean Sea region, but this will only enter into force in 2020.?

FFIF said the Sulphur Directive is particularly bad for the competitiveness of Finnish companies and distorts competition both within the EU and relative to other countries.

Because of its geographical location, Finland is extremely dependent on sea transport - more than 90% of the forest industry's products are exported by ship.

? ?"Retaining the Finnish export sector's present level of competitiveness will necessitate substantial compensatory measures to offset the unreasonable extra cost caused by the Sulphur Directive," added Mr Jaatinen.

"This calls for both EU funding and national compensation."