The European Committee Shipowners’ Associations (ECSA) on Tuesday (15 September) said it regrets a decision of the plenary in the European Parliament to draft a proposal to include shipping under the EU’s Emission Trading System (EU ETS).
This proposal has been put forward before a thorough impact assessment had been carried out, and under an unrelated piece of the legislation on the emissions monitoring system – the EU MRV.
The proposal aims to pre-empt the conclusions of the European Commission’s impact assessment study and undermines the ongoing negotiations at the UN International Maritime Organisation.
The move risks introducing sub-optimal environmental regulations at the EU level, contributing to a regulatory patchwork and an increased fragmentation at the international level, said ECSA.
It also noted that a recent study about the implications of the EU ETS on international shipping found that such a measure would undermine the international negotiations to implement the IMO’s Initial Strategy on Reduction of GHG Emissions from Ships and would increase political tension with third countries, potentially leading to trade disputes.
Another essential finding relates to the administrative burden and associated costs especially for small and medium-sized enterprises (SMEs), which accounts for the majority of shipping companies.
The use of the revenues is another critical point: depending on the final set-up, the revenues from the EU ETS would most likely not support efficiency projects and, in that case, it would not facilitate the energy transition of the sector.
The shipping industry is fully committed to eradicating its GHG emissions completely, in line with the ambitious targets set in the initial IMO GHG strategy concluded in 2018, said ECSA.
The IMO Strategy includes a target to cut total GHG emissions from international shipping by at least 50% by 2050 (compared to 2008). This implies that new builds will already have to be carbon-free in 2030.
It also sets up a carbon intensity target for international shipping, i.e. to reduce CO2 emissions per transport work by at least 40% by 2030 towards 70% by 2050, compared to 2008. Among other measures, the IMO Strategy may also develop a global market-based measure to help deliver the agreed targets.
“The whole European shipping is fully committed to decarbonisation and stands behind the EU’s bold ambition to become the world’s first carbon-neutral continent,” said Martin Dorsman, ECSA Secretary General.
“In our opinion, imposing any regulatory measures without measuring the impact on shipping is not prudent. Regional measures have been criticised for undermining global negotiations at UN IMO level and may slow down or even reverse the progress that has already been made
“We trust that the Council will put on hold any proposals until a thorough and comprehensive impact assessment is carried out. Any decision that will be taken has to truly work and actually deliver results.”
Photo credit: EU Flag
Published: 16 September, 2020
Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.
Bunker orders of ISO 8217:2010 spec LS 380 cSt 0.5% for Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern were placed through global commodities trading and logistics house Trafigura Pte Ltd.
While Covid-19 concerns are important, Captain Rahul Choudhuri was quick to note this does not mean bunker fuel related issues have indeed disappeared from the shipping sector.
‘Therefore, representing the players of the Malaysian bunker industry, we sincerely hope that this matter can be refined and reconsidered immediately so that all parties benefit together,’ says communication.
Maureen Poh, a Director of Helmsman LLC, offers plain practical tips on the differences between US and EU Sanctions and shares some thoughts on what companies could do if they are potentially exposed to sanctioned entities.
‘We [Consort Bunkers] have the opinion that the bunker business in Singapore is not related to the widely reported earlier cargo commodity trading mishaps,’ company source tells Manifold Times.