Shipping Firms Will 'Struggle' to Absorb EU Carbon Pricing: UECC

by Ship & Bunker News Team
Wednesday October 13, 2021

Shipping companies will struggle to cover the costs of upcoming EU carbon pricing themselves, and will need to pass these on down the supply chain, according to vehicle carrier firm UECC.

UECC backs the idea of aggressive emissions targets from the EU, the company said in a post on its website on Wednesday. The new European Fit for 55 measures, proposed to come into effect from 2023, would see ships larger than 5,000 gross tones starting to pay for their GHG emissions both from intra-EU voyages and those between EU ports and the rest of the world.

"Putting a price on carbon is unfortunately the only way we will see the huge decarbonisation of the fleet that is required by incentivising the use of green technologies and alternative fuels to lower emissions, though this should be a moral and ethical obligation," Daniel Gent, energy and sustainability manager at UECC, said in the post.

"Many shipping companies will struggle to absorb even the current level of carbon pricing based on the emissions profile of their fleets, with these higher costs set to be passed onto cargo owners, charterers and consumers.

"As a shipowner that has been proactively investing in green tonnage and alternative fuels for some years, UECC has seen this development coming and is well-positioned to protect all stakeholders under this changed market scenario."

UECC was an early adopter of LNG bunkering, as well as more recently taking on battery power systems and trying out biofuels.