World Shipping Council Backs EU ETS Revisions for Maritime Decarbonization
The World Shipping Council, which represents the global container shipping and vehicle carrier industry, has expressed support for the European Commission’s practical revisions to the EU Emissions Trading System (ETS). According to the organization, these changes are designed to accelerate the adoption of alternative maritime fuels and to channel revenues back into the decarbonization of the shipping sector.
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The proposed fuel mechanism for the maritime sector, announced on the same day as the source text, follows the policy logic already applied to aviation. The World Shipping Council indicated that helping to close the price gap between conventional and alternative fuels could encourage their uptake, support investment in production, and position Europe as a leading hub for alternative fuel bunkering.
The organization noted that liner shipping has already invested over EUR 160 billion in vessels capable of operating on renewable fuels, but that these cleaner ships require cleaner fuels. Closing the price gap was described as one of the most practical methods to get those fuels into ships’ tanks.
Sustainable maritime fuels can still cost between 100 and 400 percent more than conventional marine fuels, making the price gap one of the largest barriers to their adoption, according to the World Shipping Council.
The World Shipping Council also welcomed the recognition that the current design of the ETS can make European ports more expensive and less competitive for cargo moving between two non-EU markets that is transshipped in Europe.
However, the organization expressed concern about the European Commission’s proposal to expand the list of neighboring non-EU ports subject to transshipment rules based solely on infrastructure. Ports located within 150 nautical miles of the EU could be penalized simply because they have deep water, long berths, and ship-to-shore cranes, regardless of whether transshipment is actually taking place.
The World Shipping Council commented that the ETS should focus on cutting emissions, not on making neighboring non-EU ports less competitive.
Additionally, the organization noted that it would like to see a firmer commitment in the final ETS revisions against double payments once a global measure is adopted at the International Maritime Organization (IMO). The World Shipping Council stated that such certainty would strengthen Europe’s position in global negotiations and support progress at the IMO.
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