EMEA News
EU ETS May Shift Less Efficient Tonnage Away From Europe: Trafigura
Commodity trading firm Trafigura has criticised the European Union's approach to marine decarbonisation policy, suggesting the regional approach could cause distortions to global freight markets.
Applying the EU's emissions trading system to ships visiting European ports is likely to shift older, less efficient ships away to other parts of the world, price reporting agency Argus Media cited Andrea Olivi, head of oil chartering at Trafigura, as saying at an industry event this week.
"We're just shifting vessels from one area to another," Argus cited Olivi as saying.
The acceleration of European policymaking on charging the shipping industry for its carbon emissions has emerged as a result of the perception of insufficient progress at the International Maritime Organization on this subject.
Trafigura favours a global approach to marine decarbonisation spearheaded by the IMO.
The biggest effect of the European policy is likely to be on EU-bound tanker routes such as the US Gulf Coast-UKC Aframax route, Argus said.
