Seven EU Countries Call for Pause to Shipping's EU-ETS Inclusion

by Ship & Bunker News Team
Monday November 27, 2023

EU member states in the south of the continent are calling for a pause to shipping's inclusion in the bloc's emissions trading system, just over a month before the regulation is due to come into effect.

Ministers from seven EU countries including Spain and Italy have written a letter to the European Commission calling for a pause to the change because of the risk of driving business away from European ports, newspaper the Financial Times reported on Monday. The other ministers signing the letter are those of Greece, Portugal, Cyprus, Croatia and Malta.

"The ETS regime that will enter into force in 2024 may induce emissions to other parts of the world and even increase the volume of [greenhouse gas] emissions through longer routes to avoid calls at EU ports," the ministers were cited as saying in the letter.

From next year, the EU will require cargo and passenger ships over 5,000 GT in size to purchase emissions allowances covering the GHGs from their bunker consumption. The system will cover 100% of the emissions from intra-EU voyages, and 50% of those between the EU and elsewhere in the world.

A gradual phase-in has been agreed, meaning ships will pay 40% of the costs incurred in 2024, moving to 70% in 2025 and 100% in 2026.