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INTERCARGO calls out EU decision to impose ETS on shipping to be detrimental

24 Sep 2020

The International Association of Dry Cargo Shipowners, (INTERCARGO) on Monday (21 September) said the inclusion of shipping in the EU Emissions Trading System (ETS), which European lawmakers have recently supported, has ignored calls from INTERCARGO and the industry as a whole for collaboration and adapted solutions to achieve the much needed reduction in Greenhouse Gas (GHG) emissions for greener shipping.  

Far from being a meaningful contribution towards meeting those objectives, the association noted that this move is, instead, a confirmation of how distanced the thinking of European decision-makers is from the global dimensions of the shipping sector.

Global challenges and problems require global handling and solutions: The International Maritime Organization (IMO) works to ensure a level playing field globally unlike European or other regional regulations. 

The latter have proven ineffective, as they create distortions and multi-tier markets, or even trade tensions.  A thorough impact assessment on the inclusion of shipping in EU ETS is imperative, it added. 

“The industry needs fuel/energy suppliers, engine manufacturers, shipbuilders and charterers to achieve IMO’s objectives,” said INTERCARGO Secretary General Kostas Gkonis. 

“Bringing these key stakeholders aboard has arguably been the greatest challenge for IMO. One more challenge has now been added: changing the thinking of narrow-minded regional decision-makers and persuading them to see the broader picture. 

“The inclusion of shipping in EU ETS is basically a money collection mechanism, fundamentally disconnected from the work at IMO, and risks undermining a global GHG solution.”

Photo credit: INTERCARGO
Published: 24 September, 2020


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