The European Commission's proposal will be the first step towards taxing the shipping industry for its carbon emissions. File Image / Pixabay
The shipping industry will have to wait another month to discover the measures the European Union plans to impose at the regional level to encourage its decarbonisation.
The European Commission had been expected to announce its legislative proposal on whether and how to include shipping in its emissions trading system (ETS) -- effectively taxing the industry for its carbon emissions -- in June. This announcement has now been pushed back to July 14, price reporting agency Argus Media reported on Wednesday.
As well as including shipping in the existing ETS, the commission is also reportedly considering creating a separate ETS for the transport sector, taxing shipping's emissions and creating a hybrid system of emissions trading and complementary measures
The move will be the first step towards taxing the shipping industry for its carbon emissions, and will be watched closely by regulators around the world. The UK, China and the US are reported to be considering emissions trading for shipping, depending on the results of the EU's attempt.
Meanwhile the International Maritime Organization tends to disapprove of these moves at the regional level, arguing they undermine its global approach. But with any global IMO measures on carbon taxation looking to be at least a few years away, regional and national bodies are likely to continue making their own plans before then.