The Asian Shipowners’ Association (ASA) expressed its concerns regarding the inclusion of shipping in the EU ETS, which says that “it is being taken forward with little apparent understanding of the implications for the ongoing negotiations at IMO to eliminate GHG emissions.”
More specifically, ASA said that it opposes to any proposal for the unilateral regulation of international shipping, as it could “undermine the authority of International Maritime Organisation (IMO).”
As the industry’s global regulator, IMO is the only appropriate forum for the development of a market-based measure (MBM) applicable to international shipping
For this reason, ASA is very concerned about the inclusion of shipping in the EU ETS, claiming that it is being taken forward with little understanding of the implications for the ongoing negotiations at IMO, “or the wider ramifications for the EU’s relationships with its trading partners.”
In particular, ASA is concerned that the application of the EU ETS to non-EU flag ships is an “extraterritorial tax” when the EU needs to encourage global trade, not create new barriers.
ASA is concerned that, if the EU goes ahead with this extraterritorial approach, other nations around the world might feel entitled to emulate this unwelcome precedent, applying their own ‘carbon charges’ to international voyages .. creating chaos and fragmentation of the global maritime regulatory framework
Taking all of the above into consideration, ASA believes that the extension of the EU ETS to shipping will only serve to “impede the process of decarbonisation of international shipping.”
On the other hand, ASA proposes the adoption of an International Maritime Research Fund to drive innovation, paid for by a mandatory contribution on fuel used by ships, into technology the industry needs to cut carbon emissions by 50% in 2050 and ultimately eliminate those emissions. This will be supported by a levy-based system linked to fuel consumption/CO2 emissions.
