T&E Welcomes Shipping Industry Calls for Inclusion of Shipping in European ETS

Wednesday February 15, 2017

Transport & Environment (T&E) Tuesday welcomed news of two letters sent by shipping industry organisations Monday, supporting the European Parliament (EP) Environment Committee's proposal to regulate the sector via a Maritime Climate Fund from 2023 if the International Maritime Organization (IMO) "does not deliver a global measure to address shipping GHG emissions."

As Ship & Bunker has previously reported, T&E has repeatedly called for shipping's inclusion in the European Union's (EU's) Emissions Trading Scheme (ETS) as part of efforts to reduce the transport sector's overall emissions.

In December, the EP Environment Committee decided to include shipping emissions in the EU's ETS only from 2023 and only if the IMO does not have a comparable system operating for global shipping from 2021.

On Monday, the Clean Shipping Index, which represents 29 companies involved in international shipping, issued a letter stating that action by sections of business alone will be insufficient and that "first mover action" at state or regional level has triggered and supported action at the international level in the past.

In its own letter, BICEPS, a network for AB InBev, AkzoNobel, DSM, Farm Frites, FrieslandCampina, Huntsman, IOI Loders Croklaan, Lamb Weston/Meijer, and Vion Food Group, said it is time to "boost actions at international level to reduce ship CO2," calling on MEPs and EU governments to "ensure that EU related shipping contributes to the EU's 2030 climate targets from 1 January 2023 via the ETS or Maritime Climate Fund if IMO does not deliver a global measure to address shipping GHG emissions."

BICEPS suggest that the European Commission (EC) should facilitate such a process.

"Ship CO2 is completely unregulated and shipping is the only sector in Europe not contributing to the 2030 emissions reduction target," said Bill Hemmings, T&E's shipping director.

"Parliament is right that this must change if the IMO does not act. Lower CO2 means less climate warming and lower fuel burn, which lowers costs. Thats a win-win for industry, shippers and consumers."

Last month, Kitack Lim, IMO's Secretary-General, issued a letter to EU officials, urging them to address shipping emissions as a united front with IMO, noting that its proposed regional action "significantly risks undermining efforts on a global level."