The European Commission on Wednesday proposed adding shipping to the bloc’s carbon market for the first time, adding pressure on an industry, which had for more than a decade avoided the European Union’s system of pollution charges, to become greener, saysan article published on reuters website.
Why does the EU propose a plan?
With about 90% of world trade transported by sea, global shipping accounts for nearly 3% of the world’s CO2 emissions.
Under the EU plan, shipping would be added to the European Union Emissions Trading System (ETS) gradually from 2023 and phased in over a three-year period.
Ship owners will have to buy permits under the ETS when their ships pollute or else face possible bans from EU ports.
In addition to ships sailing within the EU, the proposals will also cover 50% of emissions from international voyages starting and ending in the bloc, the proposal showed.
EU ETS
The EU ETS, the world’s largest carbon market, was set up in 2005 and, by placing a price on pollution, has helped to force utilities to shift away from fossil fuel to increased use of renewable energy.
Previous efforts to bring in international aviation threatened a trade war, forcing an EU policy U-turn, although emissions from flights within Europe are covered by the EU carbon market.
Similarly, the EU shipping plan has potential to place the bloc on a collision course with the International Maritime Organization (IMO), which is coordinating measures to curb emissions among its more than 170 members.
IMO aim
It aims to halve maritime emissions by 2050 from 2008 levels. That falls short of the EU’s plan to eliminate its economy-wide net emissions by then, a goal scientists say the world must meet to avoid the worst impact of climate change.
“Shipping is an international sector requiring global regulation. We welcome concrete proposals from EU Member States for additional globally-adopted measures to further reduce CO2 emissions from ships which should be submitted to the IMO body which deals with emissions,” the IMO spokesperson said.
EU proposal aim
A separate EU proposal would set targets for ships to limit the greenhouse gas intensity of the energy they use on board by -2% in 2025, stepping up to -6% in 2030 and eventually -75% in 2050, compared with 2020 levels.
EU plan approved
The European Commission’s proposals need to be negotiated and approved by a majority of EU countries and the European Parliament before they enter into force, a process that could take up to two years.
European lawmaker Jytte Guteland, who has sought tougher goals for shipping, said she would be pushing for “higher ambitions” with proposals at the parliamentary level.
Summary
- The European Commission on Wednesday proposed adding shipping to the bloc’s carbon market for the first time.
- With about 90% of world trade transported by sea, global shipping accounts for nearly 3% of the world’s CO2 emissions.
- Under the EU plan, shipping would be added to the European Union Emissions Trading System (ETS) gradually from 2023.
- The European Commission’s proposals need to be negotiated and approved by a majority of EU countries and the European Parliament before they enter into force.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: reuters.com
