US and Swiss legislators move on shipping emissions

Ten days apart but united in objective, legislative measures in the US and Switzerland could have a dramatic impact on global shipping, despite being touted as domestic legislation.

In the US, on June 8 two senators introduced the Clean Shipping Act of 2023, which aims to reduce greenhouse gas emissions from the shipping industry to protect the health of port communities and address the environmental injustice impacts of the climate crisis.

The act would set a path to eliminate greenhouse gas emissions from all ocean shipping companies that do business with the US, directing the Environmental Protection Agency (EPA) to set both progressively tighter carbon intensity standards for marine fuels – culminating in zero emissions by 2040 – and require ships to eliminate in-port emissions by 2030.

The Clean Shipping Act in particular aims to harmonise US policy with that of the EU’s FuelEU Maritime initiative, and contains the same proviso that, if IMO legislation is deemed at least as stringent, then the US administration should adopt those standards.

Container line Maersk has full support for the bill, said Lee Kindberg, Head of Environment & Sustainability, Maersk North America. “Maersk continues to work actively to decarbonise our global operations by 2040, as demanded by many of our top global customers as well as governments and port communities. We appreciate and recognize the efforts by the US to lead in climate and environmental progress and to establish structures to accelerate decarbonisation.”

Another bill, introduced on the same day, aims to reduce emissions by imposing a pollution fee on large marine vessels offloading cargo at US ports. The goal of the International Maritime Accountability Act is to fund decarbonization efforts in the U.S. maritime economy.

Meanwhile, the Swiss public will vote in a referendum on June 18 on whether to pass into law the Federal Act on Climate Protection Goals, Innovation and Strengthening Energy Security (Climate and Innovation Act). If passed, the law will not only enshrine the country’s net-zero ambition in law, but also require all Swiss companies to reach net-zero by 2050.

Critically, the Swiss act includes both direct and indirect (Scope 1, 2 and 3) emissions, meaning that not only will Swiss-owned shipping companies have to eliminate their emissions from operations, but Swiss-owned companies will need to ensure that all transport of their goods is also emission-free by 2050. As well as big shipowners – notably container and cruise owner MSC – the country is also home to several global dry cargo charterers and  consumer goods companies, meaning the bill will have a dramatic impact on several key maritime stakeholders if passed.