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Industry Announcements

MEPs back CO2 targets and EU carbon market for shipping

Press Release: The European Parliament’s environment committee has voted to require ships to reduce their emissions and finally pay for their carbon pollution. Green group Transport & Environment (T&E) said the European Commission should follow this cue to propose including ships in the EU carbon market and investing the money raised in greener maritime technology.

MEPs today supported applying the ‘polluter pays’ principle to shipping by including it in the EU emissions trading system (ETS). They also called for a 40% carbon intensity reduction target to apply to ships when they are in operation, to be met by 2030. Ships must also be emissions free at berth by 2030, which will stop maritime transport from polluting cities while docked in Europe’s ports.

Faïg Abbasov, shipping manager at T&E, said: “MEPs have delivered a wake-up call to the European Commission, which has focused too much on biofuels and hardly at all on making shipping pay for its pollution. It should follow through on bringing the sector into the EU carbon market and stop dragging its heels on operational CO2 standards, which are essential to making hydrogen ships cost-effective.”

MEPs also asked for the current monitoring system (MRV) for emissions from ships to be more transparent and to include all greenhouse gases, including methane emissions from LNG-powered ships. The plenary will vote on the environment committee’s report on 14 September.

The shipping sector emits approximately 13% of Europe’s annual transport greenhouse gas emissions. Last year, the Mediterranean Shipping Company (MSC), moved to 7th place in the ranking of EU carbon emitters if shipping were part of the EU’s emissions trading system. Even if required to buy EU pollution permits, European shipping would still be paying seven times less for their emissions than trucks do (through fuel taxes). 

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