Container Lines Ready for the EU Emissions Trading System: WSC

Container lines are the largest consumers of bunker fuel. File Image / Pixabay

The container shipping industry is ready for compliance with the European Union's emissions trading system, according to industry body the World Shipping Council.

EU institutions reached an agreement this week on how to impose the ETS on shipping and start charging the industry for its GHG emissions, with a three-year phase-in starting in 2024.

Container lines are prepared for the regulation, the WSC said in an emailed statement.

"Liner shipping is already investing in the transition to zero GHG fuels, and is eager to operate vessels using renewably derived marine fuels distributed through a sustainable supply network," Jim Corbett, European environmental director at the WSC, said in the statement.

"We are ready, and we hope that the EU ETS for maritime will help drive investment in renewable energy as well as in the supply networks needed for the alternative maritime fuels necessary to make the transition."

Corbett reiterated the WSC's call for the regulation to take a well-to-wake approach to assessing the GHG emissions output of alternative bunker fuels.

"Including all GHGs – CO2, methane and nitrous oxide - in the EU ETS is an important step," he said in the statement.

"But only when the EU ETS takes a full life cycle perspective will it reach its real potential, increasing the competitiveness of truly renewable fuels.

"A correct price signal is the key to driving investment in the green energy necessary to produce sustainable fuels.

"With the agreed phase-in, there is a window of opportunity to move forward with a rapid adoption of life-cycle perspectives.

"This will also align the EU ETS with FuelEU requirements, promoting the uptake of new fuels."