EU turns shipping to carbon trading market to curb emissions Reuters

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© Reuters. File photo: During the Coronavirus Disease (COVID-19) outbreak in Hamburg, Germany on March 29, 2021, container ships were loaded at a container terminal in the port. REUTERS/Fabian Bimmer

Author: Kate Arnett and Jonathan Sol

Brussels (Reuters)-According to a draft plan to increase shipping emissions to the EU carbon market, shipowners may be forced to pay for pollution caused by ships or face a ban on EU ports.

Shipping currently does not face EU emission targets, but this will change according to a proposal to make its economy greener, which will be announced next month.

A draft proposal seen by Reuters would expand the carbon market to cover emissions from shipping within the EU, international voyages to the EU, and those anchored in EU ports.

This will force shipowners to purchase licenses from the EU Emissions Trading System (ETS) when their ships are polluting. ETS currently covers power plants and factories in Europe.

Shipping is regarded as one of the most difficult industries to decarbonize, and industry organizations say it lacks commercially viable green technologies.

According to the draft EU plan, the shipping industry will gradually join the ETS from 2023, when shipowners must surrender enough carbon dioxide emissions to cover 20% of their emissions.

This will rise to 45% in 2024 and 70% in 2025. Starting in 2026, shipowners will need to surrender sufficient permits to cover 100% of their ETS emissions.

The draft document states that if a shipping company fails to comply with ETS for two consecutive years, EU countries can issue a “deportation order” to the EU to prohibit ships owned by the company from entering EU ports.

The European Commission declined to comment on the proposal on Wednesday, which may change before it is announced.

Maritime doubts

European Union countries and the European Parliament have expressed their hope that shipping will be added to the ETS in 2022, and the final rules need to be negotiated, which may take about two years.

The proposal will increase the carbon dioxide emissions of the EU’s emissions trading system by approximately 90 million tons, which is a slight drop from the EU’s total greenhouse gas emissions of more than 3 billion tons.

About 90% of the world’s trade is transported by sea, and global shipping accounts for nearly 3% of the world’s carbon dioxide emissions. If not controlled, these emissions are expected to rise, threatening efforts to curb climate change.

The European Union’s plan may put it in conflict with the International Maritime Organization, which is coordinating measures to curb emissions among its more than 170 members.

Guy Platten, secretary-general of the International Shipping Association, said the industry “wholeheartedly supports carbon pricing.”

“However, it must be fair to all countries, not just developed countries, and it must be decided on an international level, not on a region-by-region basis,” Platten told Reuters.

“Multiple and overlapping regional carbon taxes will ultimately be detrimental to trade, detrimental to developing economies, and decarbonization,” he added.

The IMO’s measures aim to halve ocean emissions by 2050. This is a far cry from the EU’s plan to eliminate net emissions across its entire economy by then. Scientists say the world must achieve this goal to avoid The most serious impact of climate change.



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