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On 29th October 2012 the Council adopted a directive amending directive 1999/32/EC with regard to the sulphur content of marine fuels (PE-CONS 31/12) The key elements of the directive are:

– In line with Annex VI of the MARPOL Convention, the limits for the sulphur content of marine fuels used in designated SO2 Emission Control Areas (SECAs) will be 1% until 31st December 2014 and 0.10% as from 1st January 2015.

The IMO standard of 0.50 % for sulphur limits outside SECAs will be mandatory in EU waters by 2020. This will also apply to passenger ships operating outside SECAs, to which the current regime of 1.50 % applies until that date. A general cap does not allow the use of marine fuels with a sulphur content of more than 3.5 % by mass within Member States' territories, with the exception of fuels used by vessels with alternative exhaust gas cleaning systems, so-called scrubbers, operating in closed mode. In line with the MARPOL Convention, the directive provides that Member States shall endeavour to ensure availability of the required marine fuels.

– Aid for investment costs. Since the costs for compliance with the new requirements to reduce sulphur emissions could have negative effects on the competitiveness of the industry and could produce a modal shift from sea to land, Member States may provide support to operators in accordance with the applicable State Aid rules if such aid measures are deemed to be compatible with the treaty. Furthermore, the Commission should make full use of financial instruments that are already in place and promote the development and testing of alternative technologies to reduce emissions from ships.

– As part of the effective, proportionate and dissuasive penalties to be set by Member States in implementing the directive, possible fines should at least be equivalent to the benefits deriving from the infringements to the provisions of the directive.

– In relation to reporting and review, the Commission should, based on the implementation of the directive, draw up a report by December 2013 and consider further strengthening the provisions of the directive. In the review of the Commission's air quality policy scheduled for 2013, the Commission will consider all possibilities to reduce air pollution, including within the territorial seas of Member States.

The directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Member States will have 18 months after the entry into force to adopt the necessary national provisions.

Without success, the shipping industry had advocated the following:

- Possible derogation/exception/transitional period to the 2015 SECA requirement to be reflected in the revised directive. In this context, realities should be taken into account such as the fact that operational solutions, for example scrubbers and the use of LNG as alternative fuel - on which pilot projects are running - will not be available for full operational and commercial use in 2015. It has also become clear that the tool box of mitigation measures, i.e. state aid and the avoidance of a modal shift from sea to land transport, is far from sufficient.
- Revised sulphur directive to reflect the fuel availability clause of MARPOL Annex VI ;
- Extension of SECAs - 0.1% in EU waters. The introduction of any new Emission Control Area (if necessary) should go through the IMO process according to IMO agreed criteria under MARPOL Annex VI with a properly worked out case supported by scientific data and an impact assessment on an environmental and economic basis.