In fact, BIMCO recognizes the intentions of the EC to coordinate actions at the global level at the International Maritime Organization (IMO) and looks forward to continuing the already constructive work to decarbonize international shipping at the IMO with the European Commission; the EU member states and all the other member states.

Whatsoever, BIMCO is concerned by the intent to include international shipping in the European Emissions Trading Scheme (ETS), adding that if a market-based measure were to be considered for international shipping,

it should be at the global level at IMO, and other more appropriate options than ETS should be considered – such as a levy on carbon emissions.

As new low and zero-carbon fuels would be needed for the decarbonization the shipping industry, BIMCO further applauds the ambition of Europe “to increase the production of sustainable alternative transport fuel and accelerate the deployment of zero- and low-emission ships.”

BIMCO further highlights that there are very practical reasons for not taxing such fuels, as ships would end up simply bunker outside the EU; taxation of shipping and its services is a delicate matter which has been dealt with for decades by states all over the world bilaterally, including the EU member states, using the OECD model convention.

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Namely, as part of the European Green Deal, the Commission will deliver a Sustainable Europe Investment Plan – which will support one trillion euros of investment over the next decade, as part of the President's Strategy for a greener European future.

In order to achieve this, in March next year, the Commission will propose the first-ever European Climate Law to make the transition to climate neutrality irreversible.

This will include extending emission trading to all relevant sectors, clean, affordable and secure energy and the boosting of the circular economy. The European Green Deal will, among others, extend the Emissions Trading System to cover the maritime sector.