THE World Shipping Council says inclusion of shipping in the European Union’s Emissions Trading Scheme will encourage shipping’s journey towards decarbonisation, but EU action threatens to undermine broader international progress if the ETS extends outside of the EU.
John Butler, president & CEO of WSC said, “The EU can lead global climate action, but it can’t succeed alone. Advancing fuel-technology pathways in global shipping requires the shared commitment and co-operation of industry, governments and international regulators.
“Through the ETS, the EU has a unique opportunity to strengthen, motivate and complement global policy for reducing greenhouse gas emission in international shipping.”
WSC supports inclusion of the maritime sector in the European Commission’s proposed regional market-based approach, including both vessel owners and operators as responsible entities. As detailed in a recent WSC position paper, this design can reduce regional shipping greenhouse gas emissions by about 42% and accelerate emission reductions among non-maritime sectors as well.
However, an intra-EU scope rather than the extra-regional one proposed by the Commission, would increase the EU’s influence on the global stage, according to WSC.
An intra-EU scope would strengthen economic incentives for climate action and minimise the potential for carbon leakages that would undermine EU Green Deal goals.
It would also maintain coherence with the necessary supply side requirements for production and distribution of low-carbon marine fuels proposed in the Renewable Energy Directive (RED) and Alternative Fuels Infrastructure Directive (AFIR), says WSC.
“If the EU goes ahead with an ETS that reaches outside its borders, it runs a serious risk of alienating non-EU countries and making it more difficult to establish global market-based measures at the IMO,” Mr Butler said.
“Why not instead take this opportunity to both achieve the Green Deal goals and drive faster international progress through strong European leadership?
