Hapag-Lloyd Underlines "Huge Problem" with Proposed EU Emissions Trading Scheme

Wolfram Guntermann of Hapag-Lloyd says "the unilateral move by the EU is considered as counterproductive." Image: Hapag-Lloyd

Hapag-Lloyd AG (Hapag-Lloyd) has highlighted a "huge problem" posed to the shipping industry by the inclusion of shipping emissions in the European Union's (EU's) Emission Trading Scheme (ETS).

As Ship & Bunker reported in February, Members of European Parliament (MEPs) voted in favour of the inclusion of shipping emissions in the ETS from 2023 if the International Maritime Organization (IMO) does not have a comparable system operating for global shipping from 2021.

Wolfram Guntermann, Director of Environmental Fleet Management at Hapag-Lloyd, says the company considers "the unilateral move by the EU" as counterproductive international efforts toward reducing shipping's emissions.

"As our business is globally, we do favor decisions which apply to all competitors in our industry worldwide. Therefore, we are concurring with the opinions expressed by various ship owners' associations that the EP decision is setting the wrong course line," said Guntermann.

"A regional system will not be suitable to mitigate global CO2 emissions as being pursued by the global solution of the IMO."

As Ship & Bunker reported in January, Kitack Lim, IMO's Secretary-General, issued a letter to EU officials, urging them to address shipping emissions as a united front with IMO, noting that its proposed regional action "significantly risks undermining efforts on a global level."

Guntermann says Hapag-Lloyd agrees with Lim's position, stating: "unilateral or regional action that conflicts with or undermines actions that have been carefully considered and deliberated by the global community at IMO threatens world-wide confidence in the consistent, uniform system of regulation developed by IMO.

"Regional or unilateral action will harm the goals of the wider international community to mitigate global greenhouse gas emissions from ships and be at odds with the overarching objectives of the Paris Agreement."

In March, Jos Delbeke, Head of the European Commission (EC) Climate Action Department, said MEPs have sent a "clear signal of their frustration that work on a global objective isn't going fast enough."