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<p>The rules concerning low emission fuel to which the Noble Lord refers are part
of the International Maritime Organization’s MARPOL Convention, a treaty to which
the UK is a party. The UK supported the development of these standards when they were
negotiated in the International Maritime Organization. The Government also supported
these standards, but not any ‘gold-plating’ of them, in the subsequent negotiations
on an EU Directive covering sulphur emissions from ships. The shipping industry has
known that it would need to comply with these international rules ever since they
were adopted by the International Maritime Organisation in October 2008.</p><p> </p><p>The
Government’s aim is to implement the sulphur limits in a way that minimises the economic
impact on the industry. We have not made a detailed assessment of the costs to P&O
Ferries which have been reported in the media. We recognise that ticket prices may
have to increase to cover the cost of low sulphur fuel, but falling oil prices should
offset at least some of this increase. We are looking at ways of helping industry
meet the new regulatory requirements. We have already been successful in 2014 in supporting
shipowners and ports who applied for EU assistance under the Trans-European Transport
Network (TEN-T) programme to help purchase innovative technologies. We propose to
take matters further and identify additional options for financial assistance to affected
parts of the UK shipping and ports industries.</p><p> </p>
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