The World Shipping Council (WSC), representing the global container shipping and vehicle carrier industry, has welcomed the European Commission’s practical EU ETS revisions to accelerate alternative maritime fuels and channel revenues back into shipping’s decarbonisation.
The proposed fuel mechanism for the maritime sector follows the policy logic already used in aviation. Helping close the price gap between conventional and alternative fuels can encourage uptake, support investment in production and position Europe as a leading alternative fuel bunkering hub.
Simon Bergulf, WSC VP Environment and Climate, said: “Liner shipping has already invested over €160bn in ships that can operate on renewable fuels, but these cleaner ships need cleaner fuels. Closing the price gap is one of the most practical ways to get those fuels into ships’ tanks.”
Sustainable maritime fuels can still cost from 100% to 400% more than conventional marine fuels, making the price gap one of the biggest barriers to uptake. Reinvesting a significant share of ETS revenues in maritime decarbonisation is considered both a sensible and necessary step to meet the EU’s climate goals. WSC believes those ETS revenues could be used to strengthen European ports, including through alternative fuel infrastructure and electrification, benefitting all who call European ports and contribute to ETS.
Although WSC welcomes recognition that the current ETS design can make European ports more expensive and less competitive for cargo moving between two non-EU markets and transhipped in Europe, it is concerned by the Commission’s proposal to expand the transshipment list of neighbouring non-EU ports based on infrastructure alone. Ports within 150 naut mile of the EU could be penalised simply because they have deep water, long berths and ship-to-shore cranes, regardless of whether transhipment is taking place.
Bergulf said: “The ETS should be focused on cutting emissions, not making neighbouring non-EU ports less competitive.”
WSC also 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 IMO.
Bergulf concluded: “That certainty would strengthen Europe’s position in global negotiations and support progress at the IMO.”
