In a plenary vote on 8 June, the European Parliament rejected several amendments to the EU Emissions Trading System (ETS) agreed in May by the EP’s Environment Committee (ENVI).
ore specifically, the European Parliament’s Rapporteur, MEP Peter Liese, expressed his disappointment at the result of the vote, which could delay the legislative process and the inclusion of shipping in the ETS.
As he said:
The Social Democrats and the Greens have failed to live up to their responsibility for climate protection. The proposal has tightened up the Commission proposal in many places and means more climate protection, e.g. we would have achieved a 63% instead of a 61% reduction in emissions trading in 2030. We would have included waste incineration, included shipping much earlier than envisaged by the Commission and there were many other points where we tightened up the Commission proposal
However, Mr. Liese noted that the two groups wanted a 67% reduction and a higher one-off reduction, “at the very time when we are challenged by the crisis in Russia and the need to become less dependent on Russian gas.”
However, despite the blow, Mr. Liese was optimistic that an agreement could be reached, sharing his hope that “the Council of Ministers will find sensible compromises on all the contentious points.”
NGO Transport & Environment (T&E) also responded to the vote and urged policymakers to go back to the report agreed during the committee phase in the European Parliament and to “not let political disagreements get in the way of ambitious transport measures.”
Earlier in 2022, European Union lawmakers had reached initial agreements on reforms to the EU carbon market, as they prepare to negotiate an overhaul of the EU’s core policy for reducing planet-warming emissions.
Regarding shipping, Reuters reports its emissions would be fully covered by the carbon market from 2024, two years earlier than the original proposal by the European Commission, which drafts EU laws.
What is more, the ‘charterer-pays’ clause and the Ocean Fund are also included, however the scope would increase from 50% to 100% of extra-EU voyages by 2028, while the phase-in period is out.
Furthermore, the environment committee agreed to end allocation of free emissions permits by 2030 and lower the ceiling on the total that can be granted.
- Full reporting on emissions to commence in 2025;
- 100% of non-EU emissions from ships calling at EU ports to be caught if IMO fails to introduce a similar global measure by 2028;
- ‘Time charterers’ now expressly included in the definition of ‘Shipping Company’;
- ETS responsibility and payment of final price to fall on the commercial operator who may not always be the Shipping Company;
- ‘Operation of the ship’ is now also expressly defined for the purposes of the contractual allocation clause;
- Establishment of an ‘Ocean Fund’ is recommended to fund R&D into maritime decarbonisation, cleaner fuels, short-sea shipping and cleaner ports.