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The World Shipping Council welcomed the European Commission’s proposed revisions to the European Union Emissions Trading System to accelerate alternative maritime fuels and channel revenues back into shipping’s decarbonization
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The proposed fuel mechanism announced on July 17 is seen to close the price gap between conventional and alternative fuels, which can encourage uptake
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WSC also said reinvesting a significant share of ETS revenues in maritime decarbonization is both a sensible and necessary step to meet the EU’s climate goals
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However, WSC expressed concern over the EC’s proposal to expand the transshipment list of neighboring non-EU ports based on infrastructure alone, saying this unduly penalizes competition
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WSC also called for a firmer commitment in the final ETS revisions against double payments once a global measure is adopted at the International Maritime Organization
The World Shipping Council (WSC), representing the global container shipping and vehicle carrier industry, welcomed the European Commission’s proposed revisions to the European Union Emissions Trading System (EU ETS) to accelerate alternative maritime fuels and channel revenues back into shipping’s decarbonization.
The proposed fuel mechanism announced on July 17 follows the policy logic already used in aviation, WSC said in a statement.
It noted that it will help close the price gap between conventional and alternative fuels, which can encourage uptake, support investment in production and position Europe as a leading alternative fuel bunkering hub.
“Liner shipping has already invested over €160 billion in ships that can operate on renewable fuels, but these cleaner ships need cleaner fuels,” said Simon Bergulf, WSC vice president for Environment and Climate. “Closing the price gap is one of the most practical ways to get those fuels into ships’ tanks.”
READ: Shipping forges on with decarbonization even without approved net zero framework
Sustainable maritime fuels can still cost from double up to 400% more than conventional marine fuels, making the price gap one of the biggest barriers to uptake.
Reinvesting a significant share of ETS revenues in maritime decarbonization is both a sensible and necessary step to meet the EU’s climate goals.
WSC said it believes those ETS revenues could also be used to strengthen European ports, including through alternative fuel infrastructure and electrification, benefitting all who call European ports and contribute to ETS.
Competition
WSC also welcomed recognition that the current ETS design can make European ports more expensive and less competitive for cargo moving between two non-EU markets and transshipped in Europe.
However, WSC expressed concern over the European Commission’s proposal to expand the transshipment list of neighboring non-EU ports based on infrastructure alone.
Under the expanded list, ports within 150 nautical miles of the EU could be penalized simply because they have deep water, long berths and ship-to-shore cranes, regardless of whether transshipment is taking place.
“The ETS should be focused on cutting emissions, not making neighboring non-EU ports less competitive,” Bergulf said.
WSC also called for a firmer commitment in the final ETS revisions against double payments once a global measure is adopted at the International Maritime Organization (IMO).
“That certainty would strengthen Europe’s position in global negotiations and support progress at the IMO,” Bergulf said.
READ: Shipping industry throws support to IMO ahead of meeting advancing decarbonization
WSC noted that the movement of goods by sea is essential to Europe’s economy given that EU trade carried by liner shipping is worth €2.5 trillion annually, citing that 90% of goods by volume enter and leave the EU by sea.
Liner shipping makes more than 65,000 port calls to some 130 EU ports every year. These ships connect Europe to over 900 ports worldwide, reaching key markets and building important international relationships.
