EMEA News
European Council Sets Negotiating Position on Shipping's Inclusion in Emissions Trading
The European Council has adopted its negotiating position on shipping's inclusion in the EU emissions trading system after the European Parliament approved the move last week.
The council -- the EU institution setting the organisation's general political direction, comprised of the heads of state or government of the 27 EU member states -- officially agreed to the inclusion plan on Wednesday.
After the council adopted its negotiating position, the next step will be for it to negotiate it with the European Parliament as part of the wider 'Fit for 55' package of decarbonisation measures.
If the plan is implemented into law, from the start of next year ships travelling between EU ports will pay for 100% of their GHG emissions, while voyages between the EU and the rest of the world will incur 50% of the charge. That 50% level would be increased to 100% from the start of 2027.
75% of the funds raised from shipping would go to a fund to support maritime decarbonisation.
"The general approach accepts the Commission proposal on the gradual introduction of obligations for shipping companies to surrender allowances," the organisation said in a statement on its website on Wednesday.
"As member states heavily dependent on maritime transport will naturally be the most affected, the Council agreed to redistribute 3,5 % of the ceiling of the auctioned allowances to those member states.
"In addition, the general approach takes into account geographical specificities and proposes transitional measures for small islands, winter navigation and journeys relating to public service obligations, and strengthens measures to combat the risk of carbon leakage in the maritime sector.
"The general approach includes non-CO2 emissions in the MRV regulation from 2024 and introduces a review clause for their subsequent inclusion in the EU ETS."
