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T&E and ECSA warn proposed EU shipping law ‘risks doing more damage than good’

01 Jun 2022

Transport & Environment (T&E), a European NGO campaigning for cleaner transport, on Tuesday (31 May) said it has joined forces with the European Community Shipowners’ Associations (ECSA) to call on EU countries and the members of the European Parliament to align the FuelEU Maritime Regulation proposal with EU Climate Law and Paris Agreement goals.

Both warned that the Commission proposal falls short of ambition and fails to address the responsibilities of other stakeholders such as the fuel suppliers. If adopted in its current form, the proposal might do more harm than good to shipping’s  climate ambition. 

With this in mind, ECSA and T&E call on the EU member states and the Μembers of the European Parliament to implement the following revisions to the EU’s proposed FuelEU Maritime regulation:

  1. Support more ambitious targets under Article 4.2 in order to align them with the decarbonisation pathway compatible with the temperature goals of the Paris Agreement and the EU Climate Law.
  2. The responsibilities of the fuels suppliers are essential to achieve the ambitious regulatory targets as called for above. Thus, we call to introduce robust requirements on Member States under the FuelEU Maritime to ensure that fuel suppliers in European ports deliver compliant fuels to ships in sufficient quantities in order to meet the regulatory objectives (shared responsibility). In addition, fuel suppliers should have more concrete responsibilities under the Renewable Energy Directive.
  3. Earmark the revenues generated under the EU ETS and the FuelEU Maritime to facilitate the energy transition of the sector and contribute to bridging the price differential between conventional fuels and sustainable, and scalable alternatives, inter alia, through the carbon contracts for difference. In this regard, the establishment of a dedicated fund under the EU ETS to leverage the revenues so that sustainable fuels become commercially available is strongly supported.
  4. Introduce a high multiplier for the use of sustainable and scalable marine fuels under the FuelEU Maritime Regulation in order to render them cost-competitive vis-a-vis other alternatives.

“European shipowners are ready to contribute their fair share in addressing the climate crisis at EU level as well. But we need all hands on deck,” said Sotiris Raptis, ECSA’s Secretary-General.

“The current FuelEU  proposal does not address the responsibilities of the fuel suppliers and how cleaner  and safe fuels will become available in Europe. We look forward to further cooperation with the Commission, the MEPs and the Member States to come up with workable solutions.”

“The EU’s shipping fuels proposal has the potential to bring the renewables revolution to the shipping industry. But the current proposal by the Commission risks doing more damage than good. To seize this historic opportunity, the European Parliament  and Member States should align FuelEU’s regulatory targets with the Paris,” said Faig Abbasov, T&E’s shipping programme Director. 

“Agreement, EU Climate Law and other international commitments and incorporate into the law incentives that promote sustainable and scalable fuels like green hydrogen.” 

Note: The organisations’ full joint statement can be found here

Related: T&E: FuelEU Maritime policy lacks predictability for deployment of green e-fuels
Related: Proposed FuelEU Maritime proposal ‘not fit for purpose’ in current form, says shipping association
Related: WSC: FuelEU can do more for the decarbonisation of shipping – in the EU and internationally
Related: ECSA: Members support uptake of clean fuels but highlight FuelEU enforcement loopholes
Related: EU “Fit for 55” package ineffective, believes Cyprus Chamber of Shipping
Related: IBIA: Fuel EU Maritime, EU ETS and bunker tax proposals raise many questions
Related: ECSA: EC “Fit for 55” package offers lack of consistency among other climate proposal
Related: T&E: EU push to green shipping is positive but risks locking in fossil gas
Related: LEAKED: EU’s supposedly ‘green’ shipping law will lock in fossil fuels, says T&E

 

Photo credit: Chris Pagan on Unsplash
Published: 1 June, 2022

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