Sunday, February 5, 2023
spot_img
HomeEnvironmentEuropean Shipowners Welcome Deal to Include Shipping in EU Carbon Market

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

European Shipowners Welcome Deal to Include Shipping in EU Carbon Market

European shipowners are welcoming this week’s provisional agreement to include maritime shipping in the EU carbon market, which will force vessels to pay for their share of global warming emissions.

The deal, agreed to on Tuesday, would add to the EU Emissions Trading System (ETS) all carbon dioxide, methane and nitrogen dioxide emissions from maritime voyages within the EU.

Set up in 2005, the EU ETS is the world’s first international emissions trading system, requiring industrial emitters to buy permits for their emit carbon dioxide, thereby incentivising them to pollute less. Shipping has avoided being included in the market, but that is now set to change from 2024 when shipping companies will have to buy EU carbon permits to cover 40% of their emissions, rising to 70% in 2025 and 100% in 2026. It would also include 50% of emissions from international voyages starting and ending in the EU.

The European Community Shipowners’ Association said the deal can mark a turning point for European shipping’s decarbonization, and praised legislators for embracing calls of the industry stakeholders to earmark EU ETS revenues back to the maritime sector to support its energy transition.

According to the ECSA, at least 20 million ETS allowances, which correspond to 1.5 billion Euro under the current ETS carbon price, will be allocated to maritime projects under the Innovation Fund.

“European shipowners welcome the increased climate ambition of the ‘Fit for 55’ package, recognising that the climate crisis is one of the greatest economic and environmental challenges faced by our society. Decarbonising shipping is not a question of ‘if’ but a question of ‘how’,” said Sotiris Raptis, ECSA’s Secretary General.

Fit for 55 refers to the EU’s target of reducing net greenhouse gas emissions by at least 55% by 2030?.

“Setting aside part of the ETS revenues for maritime is a victory for the decarbonisation of the sector. Dedicated support through the Innovation Fund is key to bridging the price gap with clean fuels, improving the energy efficiency of ships, fostering innovation and building the infrastructure in ports. We look forward to working with the Commission and the stakeholders to develop effective tools for the industry’s transition”, Secretary General Raptis added.

ECSA also welcomed the upholding of the “polluter-pays principle” through mandatory requirements for the pass-through of the EU ETS costs to the commercial operators of the vessels.

The ECSA said the phase-in period and gradual inclusion of emissions from shipping over a three-year period is also “crucial” to ensure a smooth transition for the sector. The legislators also agreed on special provisions for ice-class vessels, small islands and outermost regions.

The provisional agreement on shipping is subject to an overall agreement on the ETS revision in late December.

Related Posts

Video

Finance & Economy
Shipping News
Ports

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...