Ahead of the forthcoming review of the EU Emissions Trading Scheme (ETS), Europe’s shipowners are calling on the Commission to make the exemptions for maritime transport permanent.
The European Community Shipowners’ Association (ECSA) has issued a public appeal to increase the pressure on Brussels. It is important to “permanently enshrine the exemptions for maritime transport beyond 2030 and ensure that they are fit for purpose”, according to a statement.
“Shipping accounts for around 76 per cent of the EU’s external trade and ensures connectivity for European islands, outermost regions and ice-covered regions. To safeguard the competitiveness of European shipping and the connectivity of local economies, the exemptions under the EU ETS should apply automatically – without being subject to an activation decision by Member States – and remain in place permanently beyond 2030,” according to the shipowners’ statement.
The ECSA has also put forward a number of “targeted improvements” as recommendations to ensure the exemptions are appropriately designed:
- Islands: The exemption should be extended to all EU islands – including island states and islands with more than 200,000 permanent residents – for both passenger and freight transport. Connectivity and competitiveness should not depend on population figures.
- Ice-class vessels: Higher emissions from ice-class vessels are not a business decision, but the result of safety and navigation requirements under harsh winter conditions. The ETS exemption for ice-class vessels should be made permanent and aligned with the relevant provision in the ‘FuelEU Maritime’ Regulation, which takes into account not only ice-class vessels but also navigation under ice conditions.
- Outermost regions: In the shipowners’ view, the exemption should cover all voyages to, from and between the outermost regions and all EU Member States. This is “crucial” to ensuring the essential connectivity for goods and passengers in these regions, maintaining a level playing field and promoting territorial cohesion.
- Public service obligations: The exemption for cross-border public service obligations should also be retained.
In the shipping companies’ view, the current geographical scope of the EU ETS for shipping can be maintained, provided these recommendations are taken into account. A stable geographical scope offers the industry the necessary planning certainty. “Sustainable and appropriate exemptions complement this framework and ensure that it works for islands, outermost regions, ice-covered regions and the relevant trade routes.”
