Cyprus Shipowners Say EU-Only CO2 Rules Harm Competitiveness

The current proposed regulation aims to lower ships' CO2 emissions by 2 percent by 2020.

According to the Cyprus Shipping Chamber (CSC), establishing European Union-only carbon dioxide (CO2) emission restrictions would affect the competitiveness of the European shipping industry, local Cyprus media reports. 

Instead, Deputy Director General of the CSC Alexandros Josephides argues, such laws should be taken at the international level.

"EU regulation would require that ships trading to Europe will have to introduce additional measures both in terms of procedures, monitoring and reporting, as well as in terms of equipment for the better monitoring of the ship's fuel consumption," he said.

"If these measures are agreed at the IMO (International Maritime Organization), which is our strongly preferred option, then of course these additional costs will be incurred, but they will apply equally to all vessels trading globally".

The current proposed regulation aims to lower ships' CO2 emissions by 2 percent by 2020. 

Josephides added that he wasn't against implementing CO2 restrictions, and that companies had strong incentives to reduce fuel consumption and thus CO2 emissions.

"Bunker costs represent an increasingly significant proportion of ships' operational expenses, having increased by about 300 percent in the last five years, while marine fuel prices are also expected to remain high," he said.

A European Commission report previously stated that ships could potentially save up to 55 percent in fuel consumption through a variety of solutions that include speed reduction, hull coatings, or equipment upgrades. 

The International Chamber of Shipping also said early this year that the EU should wait on monitoring CO2 emissions.