ESPO welcomes EU’s Fit for 55 package, but urges for improvements

The package includes different proposals regarding ports:

• A proposal for a Alternative Fuels Infrastructure Regulation (AFIR);
• A new proposal to increase the use of alternative fuels by shipping (FuelEU Maritime);
• The extension of the Emissions Trading System to shipping (EU ETS);
• Amendments to the Renewable Energy Directive (REDIII), and an update of the Energy Taxation Directive.

The fit for 55-proposals are an important first step: all ingredients are there to deliver the green deal and climate goals. We will now examine the proposals in depth and identify where the port pillar of this green deal architecture should be optimised. For Europe’s ports it is essential to ultimately achieve a policy that is effective in reducing emissions, is coherent, keeps an eye on the competitiveness of Europe’s port sector, is future-proof and does not create stranded assets or additional administrative burden for ports. It should take the diversity of the European port and maritime sector into due consideration

believes ESPO’s Secretary General Isabelle Ryckbost.

However, ESPO said that in oder to make the proposed package fit for purpose, the following key aspects have to be considered:

• Coherence of the package: Full alignment between FuelEU Maritime and the proposal for an Alternative Fuels Infrastructure Regulation will be key. The two different proposals must mirror each other and be considered together throughout the whole legislative process. The same goes for the other interrelated Fit for 55-proposals, which must be fully aligned.
• Efficiency in terms of emissions reductions: ESPO calls for an efficient policy that truly delivers in terms of reducing emissions, avoids stranded assets and is future-proof. A goal-based and technology-neutral approach that avoids one-size-fits-all solutions seems the best fit for this purpose. ESPO supports a framework that boosts innovation and progress, and enables bottom-up initiatives and coalitions of the willing. Cooperation between all relevant stakeholders will be crucial since unilateral moves will not deliver.
• Onshore power supply (OPS) where it makes sense: OPS is an important tool and part of the solution for lowering the shipping emissions at berth, but should not be seen as an end in itself. To ensure a rapid deployment of OPS and avoid a waste of public funds, Europe’s ports must be able to prioritise and focus on deploying OPS where it makes sense in terms of delivering cost-effective reductions of greenhouse gas emissions and air pollution at berth. It remains to see if the approach outlined in Article 5 of FuelEU Maritime and Article 9 in AFIR will lead to the right prioritisation as part of an intelligent approach to OPS.
• Safeguarding the competitiveness of the European port and maritime sector: Appropriate solutions will have to be found to the risks of deviation of certain EU port calls to ports outside Europe, linked to certain proposals in the package.
• Avoiding administrative burden for the port: To remain competitive and efficient, the Fit for 55-package should not lead to unduly complicated calculations, compliance procedures and administrative burden connected to port calls in Europe. Ports in Europe should not become green accountants for the shipping sector.
• Providing the funding for 55% emission reductions: Overall, the Fit for 55-package can only deliver if it is accompanied by sufficient support in terms of EU funding for investments in alternative fuels infrastructure, bunkering and production capacity, and retrofitting of existing ships. An ambitious OPS deployment plan in ports requires adequate funding, since every OPS facility installed so far has been supported by 50%  or more public financing.

If Europe is to become fit for 55, it needs to fund for 55. The needed investments in ports to facilitate the greening of shipping are huge. Since there is no silver bullet to green the shipping sector, these are high risk investments with hardly any return on investment for the investing port authority

comments Isabelle Ryckbost.

On July 15, the European Commission (EC) presented its FuelEU Maritime proposals. These proposals aim to increase shipping’s uptake of renewable and low carbon fuels (RLF).

More specifically, EC suggested adding shipping to the Emissions Trading System (ETS) for the first time. According to the EU plan, maritime would be added to the ETS gradually from 2023 and phased in over a three-year period.

The EU Emissions Trading System (ETS) works on the principle of ‘cap-and-trade’. It sets an absolute limit or ‘cap’ on the total amount of certain greenhouse gases that can be emitted each year by the entities covered by the system. This cap is reduced over time so that total emissions fall.

Shipowners will also have to buy permits under the ETS when their ships pollute, or else face possible bans from EU ports.