Shipping Industry Calls for Inclusion of Ship CO2 in EU ETS

  • Rules & Regulation

Associations of shippers and cargo owners have called on the European Parliament, Council and Commission to include shipping emissions in the EU emissions trading system (ETS) under a special fund, Transport & Environment association said.

As disclosed, in two letters sent yesterday, the shipping industry’s customers backed the Parliament environment committee’s proposal to regulate the sector via a Maritime Climate Fund from 2023 “if IMO (the UN’s International Maritime Organisation) does not deliver a global measure to address shipping GHG emissions”.

The Clean Shipping Index, which represents 29 companies involved in shipping goods around the world, said that action by sections of business alone will be insufficient and that “first mover action” at state or regional level has in the past helped trigger action at a wider international level. It said the environment committee’s proposal, which MEPs will vote on tomorrow (Wednesday), aims to achieve this.

In its letter, BICEPS, which is a network for AB InBev, AkzoNobel, DSM, Farm Frites, FrieslandCampina, Huntsman, IOI Loders Croklaan, Lamb Weston/Meijer, and Vion Food Group, pointed out that it was time “to boost actions at international level to reduce ship CO2”.

It called on MEPs and EU governments to “ensure that EU related shipping contributes to the EU’s 2030 climate targets from 1 January 2023 via the ETS or Maritime Climate Fund if IMO does not deliver a global measure to address shipping GHG emissions.” The European Commission should facilitate this process, it added.

 “Ship CO2 is completely unregulated and shipping is the only sector in Europe not contributing to the 2030 emissions reduction target. Parliament is right that this must change if the IMO does not act. Lower CO2 means less climate warming and lower fuel burn, which lowers costs. That’s a win-win for industry, shippers and consumers,” T&E’s shipping director Bill Hemmings said in a comment.

The European Parliament will also vote on the EU-Canada Comprehensive and Economic Trade Agreement (CETA) tomorrow at its plenary meeting in Strasbourg.

According to the European Community Shipowners’ Associations (ECSA) CETA should facilitate and boost trade between Canada and the EU, eliminating many trade barriers and offering access to new markets.

 “We are pleased CETA will bring legal certainty and a clear legal framework, especially given today’s context of rising protectionism. While shipping can be considered as more liberalised than many other sectors, this is in very few cases backed by international legal binding agreements. The consequence is that it is very easy to revert and to close markets,” Patrick Verhoeven, Secretary General of ECSA comments.


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