ESPO (European Sea Ports Organisation) and FEPORT (Federation of European Private Port Operators) welcome the inclusion of maritime in the EU ETS as part of decarbonizing shipping and call for further action against evasive port calls.
On the 13th of March 2023, the European Parliament is expected to vote on the political agreement for the revised EU Emissions Trading System (ETS). The revised ETS system will apply to maritime shipping and, after a phase-in period between 2024-2026, will require shipping companies to submit allowances covering 100% of emissions on intra-EU voyages (between two ports in the EU) and in ports, and 50% of emissions on extra-EU voyages (between a port in the EU and a port outside the EU).
Evasion from the maritime EU ETS is a serious concern that continues to pose a threat to the credibility and robustness of the EU ETS. Early action is crucial as changes in port traffic and the reconfiguration of shipping routes are almost impossible to reverse once they occur.
Managing bodies of Europe’s ports (ESPO) and private port companies and terminal operators (FEPORT), warn that the geographical scope of the EU ETS Maritime agreement could still lead to evasive port calls where shipping companies can avoid paying into the ETS in the following ways:
- By adding a call to a port outside the EU
- By reconfiguring their routes.
Risks of evasion:
- Evasion will threaten the integrity of the ETS, leading to higher emissions from longer voyages whilst failing to push shipping companies to green their operations.
- Fewer allowances being auctioned will mean less revenues available for the decarbonization of the sector.
- Evasive port calls will negatively affect employment and business activity in certain ports in the EU, and undermine their strategic role as hubs of transport, renewable energy, and connectivity.
Suggestions by ESPO and FEPORT
- AIS data and data from customs identify evasion after it has already taken place. The EU Commission should therefore use additional parameters that allow the early detection of evasive port calls and reconfigurations of shipping routes before they become irreversibly entrenched.
- The EU Commission should monitor cargo diversion via all relevant non-EU ports, not only those ports where the total share of container transhipment traffic exceeds 65%. If cargo diversion also takes place via ports or terminals below this threshold, this latter should be lowered or abandoned immediately.
- Port authorities, terminal operators and trade unions should be involved in the monitoring of the impact of EU ETS Maritime, and be continuously consulted on possible evasive trends. Both the European Port Forum and European Sustainable Shipping Forum should be consultative for the EU Commission in this respect.
- When monitoring the impacts of EU ETS Maritime, the focus should be on the cumulative impacts of the Fit for 55 package. This is especially true in the case of FuelEU Maritime. The impact of the current spike in energy prices on the competitive position of ports in the EU should be considered, as well as the trade and state aid policies of the EU’s competitors.
- The decarbonization of the sector will require significant investments in green refuelling and recharging infrastructure in ports as well as adaptations of port superstructure. ESPO and FEPORT very much welcome that revenues from the maritime ETS will support maritime decarbonization through dedicated calls under the Innovation Fund.
- A significant part of the ETS revenues should be invested in ports in the EU via dedicated EU and national calls. The revenues should be allocated to EU Member States based on port calls to ensure that investments in decarbonisation can be made in locations where the emissions take place.
The European Sea Ports Organisation (ESPO) represents the port authorities, port associations and port administrations of the seaports of 22 Member States of the European Union and Norway at political level. ESPO also has observer members in Albania, Iceland, Israel, Montenegro, Ukraine and the United Kingdom. ESPO is the principal interface between the European seaport authorities and the European institutions. In addition to representing the interests of European ports, ESPO is a knowledge network which brings together professionals from the port sector and national port organisations. ESPO was created in 1993.
The Federation of European Private Port Companies and Terminals (FEPORT) represents the interests of 1225 private port companies and terminals performing cargo handling and logistics related activities in the seaports of the European Union, which employ over 390.000 port workers. The organization was founded in 1993 to promote the interests of its members, and to maintain continuous dialogue with all EU institutional and non-institutional stakeholders. FEPORT is based in Brussels, Belgium
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