MAJOR European shipping nations are resisting the EU's plans to charge vessels entering their waters for emissions, saying the policy could divert maritime trade away from the bloc, reports London's Financial Times.
In a letter to the European Commission, ministers from seven eu countries including Spain and Italy have called for the option to pause plans to include shipping in the EU's emissions trading scheme (ETS) from January.
The letter said the move risks driving business away from European ports, while offering limited environmental benefit.
'The ETS regime that will enter into force in 2024 may induce emissions to other parts of the world and even increase the volume of greenhouse gas emissions through longer routes to avoid calls at EU ports,' said the ministers.
It could also have 'serious impacts on our import and export sectors' and investments in ports, they said.
Under plans to tax shipping emissions within its limited jurisdiction, Brussels will soon require shipowners to buy credits for every tonne of CO2 emissions they produce on journeys between two EU ports, as well as half of their emissions on shipments between an EU port and a non-EU port.
The rules will be introduced incrementally with all emissions covered by 2026.
Europe's current price is about EUR80 (US$87) a tonne. London's Lloyd's List remains between EUR80 to EUR90 per tonne of CO2, total tax revenues from the coverage of shipping by the ETS could amount to more than EUR11 billion annually.
The ship most likely to face the highest ETS bill was the cruise liner MSC Grandiosa, it said. It could face a EUR1 million annual bill in 2026.
SeaNews Turkey
In a letter to the European Commission, ministers from seven eu countries including Spain and Italy have called for the option to pause plans to include shipping in the EU's emissions trading scheme (ETS) from January.
The letter said the move risks driving business away from European ports, while offering limited environmental benefit.
'The ETS regime that will enter into force in 2024 may induce emissions to other parts of the world and even increase the volume of greenhouse gas emissions through longer routes to avoid calls at EU ports,' said the ministers.
It could also have 'serious impacts on our import and export sectors' and investments in ports, they said.
Under plans to tax shipping emissions within its limited jurisdiction, Brussels will soon require shipowners to buy credits for every tonne of CO2 emissions they produce on journeys between two EU ports, as well as half of their emissions on shipments between an EU port and a non-EU port.
The rules will be introduced incrementally with all emissions covered by 2026.
Europe's current price is about EUR80 (US$87) a tonne. London's Lloyd's List remains between EUR80 to EUR90 per tonne of CO2, total tax revenues from the coverage of shipping by the ETS could amount to more than EUR11 billion annually.
The ship most likely to face the highest ETS bill was the cruise liner MSC Grandiosa, it said. It could face a EUR1 million annual bill in 2026.
SeaNews Turkey