Executive Briefings

Support Grows to Include Ocean Shipping Emissions in EU CO2-Control Initiative

A proposal to include emissions from shipping in the European Union's 2030 emissions reduction target through the E.U. emissions trading system (ETS) has gained cross-party support among members of the E.U. parliament.

Support Grows to Include Ocean Shipping Emissions in EU CO2-Control Initiative

The amendment calls for shipowners to buy ETS allowances from 2021 onwards or pay an equivalent amount into a new climate fund that minimizes administrative burden by buying allowances collectively on their behalf.

The parliamentary groups of the Socialists and Democrats, Greens and the liberals tabled the proposal. The center-right group, the European People’s Party, also supports the inclusion of shipping in the ETS as a way to make the sector contribute to the E.U.’s 2030 climate target.

The fund will also function as a flow-back mechanism by reinvesting 20 percent of the allowances’ revenues to make the shipping industry and ports more efficient. This new source of financing is expected to support carbon-saving retrofitting, innovative technologies and port charging schemes.

The proposal is based on the existing E.U. monitoring system of shipping emissions to keep to a minimum the extra administrative cost for shipowners, ports and authorities. The owners of ships arriving at or departing from E.U. ports would have to either buy directly E.U. ETS allowances to cover their CO2 emissions or pay an equivalent amount into the fund that will collectively purchase and retire the required number of allowances on their behalf.

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The amendment calls for shipowners to buy ETS allowances from 2021 onwards or pay an equivalent amount into a new climate fund that minimizes administrative burden by buying allowances collectively on their behalf.

The parliamentary groups of the Socialists and Democrats, Greens and the liberals tabled the proposal. The center-right group, the European People’s Party, also supports the inclusion of shipping in the ETS as a way to make the sector contribute to the E.U.’s 2030 climate target.

The fund will also function as a flow-back mechanism by reinvesting 20 percent of the allowances’ revenues to make the shipping industry and ports more efficient. This new source of financing is expected to support carbon-saving retrofitting, innovative technologies and port charging schemes.

The proposal is based on the existing E.U. monitoring system of shipping emissions to keep to a minimum the extra administrative cost for shipowners, ports and authorities. The owners of ships arriving at or departing from E.U. ports would have to either buy directly E.U. ETS allowances to cover their CO2 emissions or pay an equivalent amount into the fund that will collectively purchase and retire the required number of allowances on their behalf.

Read Full Article

Support Grows to Include Ocean Shipping Emissions in EU CO2-Control Initiative