IMO 2020
Meaning
IMO 2020 is the global limit, in force since 1 January 2020, of 0.50% sulphur in ship fuel outside emission control areas.
Also written as Global sulphur cap, 0.5% sulphur cap
IMO 2020 explained
Before 2020 the global limit was 3.50%. Ships now comply by burning very low sulphur fuel oil (VLSFO) or by fitting scrubbers and continuing to burn high sulphur fuel oil.
The price gap between VLSFO and HSFO decides how much a scrubber saves, which affects how scrubber-fitted tankers are valued and chartered.
Related terms
ECA
An emission control area (ECA) is a sea area where ships must burn fuel with no more than 0.10% sulphur, or use a scrubber, under MARPOL Annex VI.
Scrubber
A scrubber (exhaust gas cleaning system) removes sulphur from a ship's exhaust, letting it burn cheaper high sulphur fuel oil while staying compliant.
Bunkers
Bunkers are a ship's fuel, mainly very low sulphur fuel oil (VLSFO), high sulphur fuel oil (HSFO) for scrubber-fitted ships, and marine gasoil (MGO).
MARPOL
MARPOL is the IMO's International Convention for the Prevention of Pollution from Ships, covering oil, chemicals, sewage, garbage and air emissions.