Independent journal on economy and transport policy
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The WSC reiterates that the EU ETS for shipping must be directed towards a global solution
Wrong - denounces the association - to move from a policy based on "the polluter pays" to one in which "the polluter is paid"
January 24, 2022
Highlighting that carbon pricing is a key part of the strategy to promote the adoption of zero greenhouse gas emission fuels and that the ETS of the EU can be an important step towards the adoption of measures based on the global market to be applied to all ships, and not only to a part of the international fleets, the shipowners' association explained that there are two concerns of the WSC regarding the amendments that have been proposed by German MEP Peter Liese, principal European Parliament negotiator for the reform of the EU ETS.
First of all, the World Shipping Council fears the negative effect of the proposal to amend the definition of "entity" responsible" which aims to reduce the impact of costs of the ETS on shipowners and thus to ensure their access priority to the revenues generated by the ETS, such as the Ocean Fund. "This - specified the WSC in a note - would undermine the entire plant of the ETS, transforming it from a 'polluter' policy pays" to a system in which "the polluter is paid" and would greatly reduce its effectiveness."
The second concern of the WSC is aroused by others amendments under which the European Commission should abandon its multilateral approach to engage instead in bilateral agreements with nations in order to extend the carbon pricing only to the sea routes that serve Europe. According to the WSC, this would entail a change in strategy with a costly effect, which would jeopardise progress towards a global policy on greenhouse gases for shipping within the Framework of the International Maritime Organization (IMO) and it would therefore slow down progress towards the decarbonisation of the maritime transport, as well as having other negative effects including a loss of competitiveness of the ports of the European Union and a distorting impact on trade.
Beyond these reasons for concern, the World Shipping Council reiterated that the EU ETS, as a system regional, must not in any case compromise or hinder the path to develop a global system within the IMO: decarbonisation of maritime transport - underlined the WSC Chairman and CEO, John Butler - represents a global effort of all, and regional policy it must be a guide rather than an obstacle."
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