Hope for the sulfur directive dashed
The hopes of Swedish base industry to stop the EU’s sulfur directive have been dashed. Instead, the Swedish forest industry hopes now lie with the government compensating it for the increased annual costs of about SEK 1 billion that the directive will cost the industry.
“It is terribly unfortunate to be burdened by this type of political tax during these harsh times when our member companies are working hard to manage the market situation and maintain their competitive edge,” says Carina Håkansson, in the next issue of the Nordic Paper Journal.
The sulfur directive enters force next year and means for Sweden’s part that the sulfur content of marine fuel for shipping over the Baltic and along the west coast should be, essentially, zero. For other countries in EU waters, a sulfur content of 0.5% is permitted in fuel from 2020, when the rules become homogeneous for the entire EU.
The hopes of the forest industry now lie with a compensation package from the government. The package is based on the entire cost of the sulfur directive for all industry in Sweden being in the range of SEK 4.5 – 6.4 billion per year, of which the annual cost for the forest industry is more than SEK 1 billion.
“The government stated in its budget bill that the sulfur directive would be implemented in line with the EU’s directive, but that the competitiveness of industry would be maintained,” says Carina Håkansson.