The IMO has agreed to start working on the development of a ban on the use and carriage of heavy fuel oil (HFO) as fuel by ships in Arctic waters. Such a ban would not prohibit the carriage of heavy grade oil in bulk as cargo, but would require ships sailing in the Arctic waters to use and carry non-HFO bunker fuels only. This would lead to a reduction of black carbon emissions and reduce costs and damages in case of an oil spill, but also impose additional costs on ship owners/operators that otherwise would have used and/or carried HFO bunkers or blends thereof for on-board combustion purposes.
Residuals bunker ban in the IMO Arctic waters: Cost implications for Russian trade flows – a case study
The study is complementary to CE Delft’s 2018 assessment of the costs and benefits of a Residuals bunker fuel ban in the IMO Arctic waters and analyses for a Russian trade flow the potential impacts of a ban on the use and carriage of heavy fuel oil (HFO) for use by ships in IMO Arctic waters (hereinafter referred to as ‘Arctic HFO ban’).
The study does not comprehensively assess the cost implications of an Arctic HFO ban on Russian trade flows, but rather estimates the potential additional shipping costs of an Arctic HFO ban and analyses the potential cost pass-through by means of a case study.