The International Chamber of Shipping (ICS) has stated that it is disappointed with the EU’s decision to include international shipping into its regional Emissions Trading System (ETS) as it will impede current discussions on additional CO2 reduction measures at the IMO.
- The EU ETS uses a cap and trade principle whereby companies can buy or receive emissions allowances, which they can then trade with other EU countries as needed. After one year a company must surrender its allowances to cover all its emissions, otherwise face heavy fines.
- If emissions are reduced, the company can keep its spare allowances to cover its future needs, or sell them to another company that is short of allowances.
- However, the ICS says that the ETS, which has been developed primarily for industries such as power generation and cement and steel production, is completely inappropriate for international shipping which mostly comprises SMEs typically operating less than 10 ships.
- Applying the ETS to global shipping will create market distortion and generate trade disputes with non EU countries, such as China says ICS.
- ICS states that the decision will mean current attempts by the shipping industry to reduce CO2 through IMO measures may be polarised.
- Previously, the EU’s ETS has been applied to aviation and was unsuccessful.
- ICS is working with the European Community Shipowners’ Associations (ECSA) to persuade the plenary of the European Parliament, as well as EU Member States and the European Commission, to reject the EP Environment Committee’s report.
To read the press release from ICS, please click here.
Ship Efficiency Review News
To contact the reporter responsible for this article, please email editor@fathom-mi.com
