EMEA News
Intercargo Sees EU Carbon ETS for Shipping Increasing Emissions
The European Union applying its emissions trading system (EU ETS) to shipping may end up increasing emissions rather than cutting them, according to dry bulk shipping organisation Intercargo.
The European Parliament voted in favour of the move earlier this month, and draft plans from the European Commission have shown an intention to regulate at least intra-EU voyages at the start.
"The EU ETS risks causing trade retaliation, an increase in emissions and the decline of European ports," Intercargo said in a statement on its website last week.
"There is a danger that trans-shipment centres will be set up just outside EU borders and served by large, efficient bulk vessels.
"Smaller, less GHG efficient ships will then transport cargoes to EU ports, which will lose efficiencies gained through technology and size. In short, carbon leakage will take place."
The organisation reiterated its support for putting a $2/mt levy on bunker fuel sales to build up a research and development fund for decarbonisation technologies.
"The industry needs fuel/energy suppliers, engine manufacturers, shipbuilders and charterers to achieve IMO's objectives," Kostas Gkonis, secretary general of Intercargo, said in the statement.
"Bringing these key stakeholders aboard has arguably been the greatest challenge for IMO.
"One more challenge has now been added: changing the thinking of narrow-minded regional decision-makers and persuading them to see the broader picture.
"The inclusion of shipping in EU ETS is basically a money collection mechanism, fundamentally disconnected from the work at IMO, and risks undermining a global GHG solution."
