ECSA supports proposal for commercial operators to pay for the EU ETS costs

ECSA also supported the proposal of the Rapporteur to create a sector-dedicated fund and to allocate at least 75% of the revenues generated by the shipping allowances to this fund.

In addition, Mr. Liese has also attempted to address the issue of the ice-class vessels in his report, which is one of elements highlighted by ECSA’s Framework conditions for an MBM for shipping.

Introducing a binding clause in contractual agreements between shipowners and commercial operators is at the core of ECSA’s position on the inclusion of shipping in the EU ETS

stated Philippos Philis, ECSA’s President, adding that this will ensure the proper application of the polluter pays principle, and will incentivise the uptake of further efficiency measures and cleaner fuels.

Furthermore, Sotiris Raptis, ECSA’s Acting Secretary-General, noted that the sector-dedicated fund is essential to finance R&D projects and to bridge the price gap between cleaner and conventional fuels.

Although the draft report needs to be improved on certain points and marks the beginning of a long legislative process, it is an essential step forward

For its side, ESPO also welcomed the proposal to include shipping in an Emission Trading System (ETS). However, it warned that evasive port calls at neighbouring non-EU ports could seriously jeopardise the effectiveness of the maritime ETS, as it would not reduce total shipping emissions.

Furthermore, the WSC stated that “the European Parliament’s lead MEP on the EU ETS proposes amendments to the ETS for maritime that put the impact and efficiency of the EU Green Deal at risk.”  

More specifically, WSC has two primary concerns:

1. The proposed changed definition of “responsible entity” would corrupt the ETS;
2. The bilateral agreements proposed would undermine progress towards global GHG policy.

EXPLORE MORE AT ECSA’S PAPER ON EU ETS