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Industry associations hit out as EU persists with plan to include shipping in Emissions Trading System

Industry associations hit out as EU persists with plan to include shipping in Emissions Trading System
International shipping associations have rounded in a chorus disapproval on the result of a vote in the European Parliament on Wednesday.

A majority of MEPs supported the proposal that international shipping (including non-EU flag ships) should be incorporated into the EU Emissions Trading System from 2023 if there is no comparable system operating in the IMO by 2021.

“Putting unrealistic pressure on IMO with regional measures that will gravely hurt a global sector and do very little for climate is not the way to proceed,” commented ECSA (European Community Shipowners’ Associations) secretary general Patrick Verhoeven. “We thank those MEPs that voted against the inclusion of shipping and hope this spirit will prevail in the upcoming trilogue negotiations" between representatives of the European Parliament, Council and Commission.

The ICS (International Chamber of Shipping) said it was ‘disappointed but not surprised’ by the vote, which it felt “simply risks polarising debate among IMO Member States which have already agreed to develop a strategy for reducing shipping’s CO2 emissions in line with the goals of the Paris Agreement on Climate Change.”

“EU Member States, which are also members of IMO, now have a duty to reject these unhelpful proposals, as they are taken forward as part of the wholesale attempt to reform the EU Emissions Trading System,” added ICS director of Policy & External Relations Simon Bennett. “Trying to include thousands of small shipping companies – including thousands of companies not based in the EU – into a system designed for major EU power generating companies and steel and cement producers is only going to complicate this reform.”

“Intertanko and its members consider the EU Parliament’s ambition as totally counter-productive,” commented Dragos Rauta, technical director of the international independent tanker association. “This undermines the work undertaken by IMO and may upset the spirit of cooperation under which IMO develops global rules for a global industry.”

“It is disappointing that, despite the IMO Secretary General’s recent appeal to EU leadership, they still fail to recognise the crucial importance effective regulations at global level will have in this domain,” added Katharina Stanzel, Intertanko managing director. “We can only achieve global goals through widespread buy-in to international solutions for shipping.”

The German Shipowners’ Association (VDR) also added its voice saying the vote by the European Parliament sent a detrimental signal to the 172 IMO member states. “Including international shipping in the ETS jeopardises the positive outcome of the joint negotiations within IMO, where countries like the USA, China, Brazil and India until now pulled together. Climate protection, as well as shipping, need global solutions, not a patchwork of regional approaches,” said Ralf Nagel ceo of VDR.