• 2020 September 18 10:16

    ECSA publishes study on implications of EU ETS for shipping

    With the European Commission announcing an increased climate target for 2030 and aiming to extend the EU's Emission Trading System (EU ETS) to the shipping sector, ECSA is publishing its joint study with the International Chamber of Shipping (ICS) on the "Implications of application of the EU Emissions Trading System (ETS) to international shipping, and potential benefits of alternative Market-Based Measures (MBMs)" written by Dr Edmund Hughes.

    "Implementing the European Green Deal, the Commission has put forward a new increased EU emissions’ reduction target for 2030 aiming to extend the EU ETS to shipping," said Martin Dorsman, ECSA Secretary-General. "Since the IMO's Initial Strategy on Reduction of GHG Emissions from Ships was adopted in 2018, the shipping industry has been working hard towards these goals and made important progress. Additionally it has put forward a proposal for an International Maritime Research and Development Fund. The proposal seeks the establishment of a programme to accelerate the introduction of low-carbon and zero-carbon technologies and fuels for new and existing vessels. There should be absolutely no doubt that the industry is fully committed to decarbonisation and green energy transition. Yet many questions still remain as to whether an EU market-based measure (MBM), in addition to other short and medium term measures set by the IMO, would derail the international negotiations at the IMO and revert progress already made. Furthermore, is the EU ETS an effective and efficient measure? If not, what are the alternatives?

    "Rather than blindly implement the EU ETS on the shipping industry that is already advancing towards decarbonisation, we should first answer all these questions with an independent, thorough and comprehensive impact assessment," Mr Dorsman continued.

    In order to contribute constructively to the discussion, a study was commissioned by the industry to look at both potential advantages and disadvantages of the EU ETS on shipping.

    One of the most significant findings is the mismatch between the EU ETS and the complex diversity of the numerous segments within the shipping industry:

    "The characteristics of the numerous ship types, contractual relationships and operators present a highly complex market that is unlikely to be effectively or appropriately addressed suggesting a pragmatic approach by decision makers is required, as has already being demonstrated by the European Parliament’s recommendation to continue leaving road transport outside the scope of EU-ETS."

    Furthermore, such a measure would undermine the international negotiations to implement the IMO’s Initial Strategy on Reduction of GHG Emissions from Ships and would increase political tension with third countries, potentially leading to trade disputes.

    Another finding pertains to the dominance of SMEs within the industry, where “administrative burden and associated costs in comparison to other MBMs would be significant and should be a critical consideration for policymakers”.

    The use of the revenues is another critical point: depending on the final set-up, the revenues from the EU ETS would most likely not support efficiency projects and, in that case, they would not facilitate the energy transition of the sector.

    "ECSA invites all policymakers to enter into discussion with the industry and openly discuss both pros and cons of an EU action and the different policy options. We also look forward to fully contributing to the impact assessment exercise, which we insist is an absolute necessity," Mr Dorsman concluded.




2020 October 29

18:31 Wan Hai Lines to launch Straits – Bangladesh Express Service
18:09 Lloyd’s Register launches dedicated Maritime Decarbonisation Hub
17:56 Bill on corporatization of FSUE Rosmorport submitted to RF Government
17:56 Hapag-Lloyd announces winter surcharge to and from St. Petersburg and Ust-Luga
17:30 Rosmorport’s Azov-Black Sea Basin Branch purchased 5 tugboats
17:05 Wärtsilä to collaborate with Anemoi Marine Technologies in future sales of Rotor Sail solutions
16:59 Romania’s border authorities using EMSA RPAS for coast guard surveillance
16:35 Jon Fredrik Baksaas appointed DNV GL’s Chair of the Board
16:17 Nordion Energi moves closer to the aim of 100% green energy by joining the European Clean Hydrogen Alliance
16:01 Port of Los Angeles streamlines online permit process
15:28 MABUX released Bunker Weekly Outlook
15:22 Bunker prices are slightly down in the Far East ports of Russia (graph)
15:20 CMA CGM announces Peak Season Surcharge from China to Russia
15:01 Partnership agreement between leading Hamburg Port Authority and Tanger Med Port Authority
14:36 Port Kolomna takes delivery of multibucket dredger of Project 3409
14:11 MAN compressor technology for largest FPSO vessel offshore Brazil
13:53 Novatek to launch LNG terminal in Rostock (Germany) in 2023
13:30 Rosatom looks into using barges for LNG delivery to Arctic regions
13:11 IMEC and ITF opens big quarantine and testing facility in Manila
12:52 RS grants GASA to GTT’s Mark III Technology
12:29 Rosatom expects reactor plants RITM-200 to be efficient for container carriers and oil tankers
12:10 GTT entrusted by Zvezda with the tank design of ten ARC7 ice-breaking LNG сarriers
11:48 USC forecasts complete transition of shipping industry to electric propulsion in 20-25 years
11:30 Rijkswaterstaat has awarded the enlargement of the Twente canals to a consortium of Van Oord - Hakkers - Beens
11:09 DSV Panalpina acquires Prime Cargo
10:50 Novatek to put into operation 30,000-cbm gas carrier under Cryogas-Vysotsk project in 2022
10:37 Volvo Penta IMO III marine generator sets help power five electric ferries in Norway
10:09 International Association of Dredging Companies signs major strategic collaboration agreement with FIDIC
09:51 MABUX: Bunker Market this morning, Oct 29
09:46 Three LNG-powered product tankers for shipment of stable gas condensate from Ust-Luga to be delivered in 2022-23
09:24 Oil prices show slight increase
09:20 Vestdavit wins contract to supply six French Navy vessels
09:12 Baltic Dry Index as of October 28

2020 October 28

18:15 Sri Lanka's East Container Terminal inaugurates for operations
17:51 Tallink Grupp makes temporary changes to Tallinn-Helsinki route schedule from 29 October 2020
17:30 Key element of Russia’s collider facility NICA transshipped in Bronka
17:06 GONDAN delivers new fishing stern trawler to Prestfjord AS
16:39 Rosmorrechflot resumes work on programme for encouraging LNG-powered shipping
16:13 Cavotec launches next generation MoorMaster
16:05 CNL awarded Transport Canada contract to research clean energy technologies to decarbonize marine sector
15:48 Profit attributable to NOVATEK shareholders amounted to RUB 24.1 billion in 9M’2020
15:25 Petersburg Oil Terminal increased shipments of oil products by 18% in 9M'2020
15:03 World’s first LPG-retrofit announced
14:56 SCF time charters three icebreaking LNG carriers to the Arctic LNG 2 project
14:22 FSUE Rosmorport to adjust design documentation for dredging at LNG terminal in Bechevinskaya bay
14:03 LNG-fueled PCTC“SAKURA LEADER” accredited as the world's first digital smart ship
13:37 Blue Wave terminal in Azov port increased its throughput by 13% in 9M’2020
13:11 Cooperation agreement signed between Fincantieri and the Cochin Shipyard
12:35 LNG bunkering vessel Optimus built by Damen arrived in Shanghai for start-up procedures and sea trials
12:04 CMA CGM announces PSS for cargo from Pakistan to North Europe
11:42 Global Ports to launch tank container repairs service at Yanino
11:23 MPA launches RFP for new LNG bunker supplier licence
11:01 4th “LNG Fleet, LNG Bunkering and Alternatives” conference kicked off
10:50 CMIT receives largest container vessel in Vietnam’s history
10:15 “All Ferries of Russia. Baltic Sea” webinar scheduled for 6 November 2020
10:10 Total charters four new LNG-powered vessels
10:01 MABUX: Bunker Market this morning, Oct 28
09:59 CMA CGM announces FAK rates from Asia to North Europe
09:46 Bunker market sees mixed price movements in the Port of Saint-Petersburg, Russia (graph)
09:28 Oil prices start decreasing