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ICCT report provides considerations on future policy revisions of EU ETS Directive

Report targets EU ETS review by 31 December 2024 about whether to include ships smaller than 5,000 GT and a review by 31 December 2026 about whether to include offshore vessels.

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The International Council on Clean Transportation (ICCT) on Wednesday (20 December) issued policy update ‘The maritime sector in the European Union Emissions Trading System’ which provides suggestions to further improve the Emissions Trading System Directive (EU ETS Directive).

ICCT noted the EU ETS has been updated in phases since its inception in 2005 with such work scheduled to be continued.

In particular for maritime transport, there will be a review by December 31, 2024 about whether to include ships smaller than 5,000 GT in the EU ETS, and a review by December 31, 2026 about whether to include offshore vessels.

Future policy revisions could consider the following to further improve the policy’s impact on the marine sector:

Regulated GHG emissions: Black carbon (BC), a potent short-lived climate pollutant, is not currently within the scope of regulation. These emissions from international shipping accounted for about 7% of all CO2e emissions in 2018, based on 100-year global warming potentials, and emissions of BC from shipping increased by 12% from 2012 to 2018.10 To include BC in future revisions of the Directive, shipping companies could report BC emissions to the European Union for incorporation in the EU ETS Directive the following year.

Geographical scope: Currently, only 50% of emissions from extra-EU voyages are included in the EU ETS Directive. According to 2021 MRV data, this leaves 41.8 Mt of CO2 annual emissions outside the scope.11 Additionally, a European Commission study estimated that maintaining the geographic scope at 50% would result in €37 billion in missed revenues between 2020 and 2050.12 Future revisions of the Directive could consider extending the scope to 100% of extra-EU voyages for voyages that are not already subject to a carbon price equal to or greater than the EU ETS price. This would help limit the climate impact of maritime transport and unlock additional revenue.

Vessel size and type: Fishing vessels, yachts, service vessels, and military vessels are currently excluded from the scope of the Directive, as are smaller vessels between 400 GT and up to but not including 5,000 GT. While the smaller vessels will be the subject of the aforementioned feasibility study in 2026, it remains uncertain whether they will subsequently be included in the EU ETS. Smaller ships account for 15% of maritime emissions and typically offer more decarbonization options than larger vessels; this makes them particularly good candidates for testing new zero-carbon technologies. Policymakers could consider including all ship types in the ETS Directive and expanding it to cover ships of 400 GT and above, after the feasibility and impact assessment.

Photo credit: Guillaume Périgois on Unsplash
Published: 27 December 2023

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Business

EMSA drone to monitor ship emissions at Port of Barcelona

EMSA said nearly a quarter of all maritime trade in Spain flows through the Port of Barcelona, which is one of the largest commercial and industrial centres in the Mediterranean region.

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EMSA drone to monitor ship emissions at Port of Barcelona

The European Maritime Safety Agency (EMSA) on Thursday (18 July) said its Remotely Piloted Aircraft Systems Services (RPAS) is supporting Spanish authorities in the Port of Barcelona with emissions monitoring this summer.

The specially equipped RPAS is being used to measure exhaust plumes from ships, helping ensure compliance with EU and IMO regulations on sulphur content in marine fuels.

“Data from the RPAS is fed into the THETIS-EU platform, managed by EMSA, which records and exchanges the results of individual compliance verifications performed by Member States under the Sulphur Directive,” it said in a social media post.

“This can trigger follow-up inspections of individual vessels.” 

EMSA said nearly a quarter of all maritime trade in Spain flows through the Port of Barcelona, which is one of the largest commercial and industrial centres in the Mediterranean region. 

“As well as emissions monitoring, the RPAS can help port authorities to detect issues like oil spills and floating debris in the port’s internal waters, anchorage area and North and South access channels,” it added. 

 

Photo credit: European Maritime Safety Agency
Published: 23 July, 2024

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FuelEU

Columbia Group launches solution to help ship owners comply with FuelEU Maritime

Firm said the platform creates transparency in managing the fuel life cycle from bunkers supply to consumption and emissions; can collect, clean, analyse and forecast emissions data.

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Philippos Ioulianou, Director of Energy and Renewables at Columbia Group

Columbia Group on Tuesday (16 July) said it has launched a new one-stop shop platform to help ship owners comply with the new FuelEU Maritime regulations. 

The introduction of Fuel EU Maritime restrictions that will enforce a reduction of carbon intensity levels on vessels by 2% next year is a challenge ship owners and managers trading in and out of EU waters will need to address and prepare for over the next six months.

The firm said the platform creates transparency in managing the fuel life cycle from bunkers supply to consumption and emissions. It can collect, clean, analyse and forecast emissions data. By using this platform, clients can feel safe in the knowledge they have a reliable partner who can also help them create long-term green strategies for the future.

“Thanks to its amazing technology and the use of AI, it can streamline these processes, providing accurate and efficient solutions that adapt to the evolving regulatory landscape,” it said.

Philippos Ioulianou, Director of Energy and Renewables at Columbia Group, said: “These new restrictions are going to have a big impact for owners and managers and it’s important they look at what measures they are going to need to take to comply with the regulations and to avoid hefty fines. 

“At Columbia Group, we believe that sustainability and profitability can go hand in hand.”

“We will be able to not only help our clients put measures in place to reduce their carbon intensity levels but we can also handle inputting and analysing the data as well.”

“Our mission is to empower the shipping industry with the tools and knowledge they need to achieve their environmental goals while maintaining competitive advantage. Through continuous innovation and dedicated support, we are committed to driving the global transition to a low-carbon economy.”

 

Photo credit: Columbia Group
Published: 17 July 2024

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Association

INTERCARGO joins shipping industry in calls for IMO to amend CII flaws

CII in its current format is inadequate and its one-size-fits approach, has inherent flaws that unfairly punish the shipping industry, particularly the dry bulk sector.

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Revised IMO

The International Association of Dry Cargo Shipowners (INTERCARGO), representing 50 companies from 30 countries, on Thursday (11 July) issued a statement indicating its position on flaws related to the Carbon Intensity Indicator (CII).

With discussions regarding the IMO’s (International Maritime Organization) Carbon Intensity Indicator (CII) due to recommence at their Marine Environment Protection Committee (MEPC) 82 meeting in September, INTERCARGO, the association of dry bulk shipping companies, together with the other global shipping associations, have issued a pertinent joint policy statement to the IMO calling for changes to the flaws in the Carbon Intensity Indicator (CII).

Along with CLIA, BIMCO, InterManager, ICS, and INTERTANKO, INTERCARGO has indicated that the CII in its current format is inadequate and its one-size-fits approach, has inherent flaws that unfairly punish the shipping industry, particularly the dry bulk sector.

In line with the IMO’s strategy to reduce emissions from shipping, the sector is actively striving to do all it can to achieve the goal of being carbon free by 2050. However, due to serious shortcomings with the CII metric the shipping industry is calling on the IMO to amend the current way the CII is applied, in order to avoid unintentional outcomes that conflict with the IMO Strategy to reduce overall greenhouse gas emissions.

In addition, INTERCARGO is calling on the regulatory authorities to work in closer cooperation with the shipping industry and flag states, to ensure that the true environmental performance of vessels is reflected in the CII.

Kostas Gkonis, Secretary General of INTERCARGO, said: “In March the IMO recognised the concerns raised by the shipping industry relating to the shortcomings and unintended consequences of the CII, resulting in agreement that it should be reviewed. The IMO has, so far, received 78 submissions calling for amendments and/or highlighting the concerns of the CII. INTERCARGO and the rest of the shipping industry will be part of the solution to these issues, and we look forward to the commencement of the CII review at the IMO’s Marine Environment Protection Committee in the autumn.”

INTERCARGO and its members remain fully committed to safe, sustainable shipping in clean oceans and in line with IMO targets, we will continue to strive to be carbon free by 2050.

Related: INTERCARGO: Current CII has ‘significant flaws’ that need to be addressed
Related: EU beginning to grasp realities of shipping, says INTERCARGO

 

Photo credit: International Maritime Organization
Published: 16 July 2024

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