The European Union’s Emissions Trading System (ETS) expansion to the transportation sector has prompted concerns from the Federation of European Private Port Operators (Feport). They are seeking a reevaluation to ensure EU ports are not adversely affected.
Feport’s Concerns
Report highlights the need for evidence on how the ETS might impact EU ports, emphasizing that current discussions overlook practical challenges. There’s the worry that the ETS could make EU ports less competitive, pushing carriers to avoid additional costs by diverting to non-EU harbours.
EU Commission’s Inclusion of Non-EU Harbors
The report previously proposed including non-European Economic Area (EEA) ports, but recent EU Commission decisions imply that certain non-EU harbours like Tanger Med and Port Said, are now under the EU ETS jurisdiction.
Financial Impacts
Drewry Shipping estimates potential fines of up to 3.4 billion euros for vessels at European ports due to ETS. Carriers are expected to pass these costs to shippers, as seen in previous instances.
Feport’s call for a reevaluation reflects industry concerns about the ETS’s impact on EU ports, with implications for competitiveness and potential shifts in transhipment activities to non-EU ports. Responsive measures are crucial to address these challenges.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe!
Source: OCEAN CREW
