EU ETS for shipping grants competitive advantage to truck transport – Danish Shipping

The Danish shipowners association says that including shipping in the EU Emissions Trading System (ETS) before road transport is included will lead to a competitive imbalance between the road haulage and short-sea shipping sectors.

PHOTO: European Parliament headquarters in Strasbourg, France. Getty Images

Danish Shipping argues that the ETS will push maritime transport cost higher and may lead customers to opt for road transport.

The EU should rather consider moving cargo from road to sea-based transport, as it would prevent road traffic and accidents, it says.

EU authorities came to an agreement last month to implement an ETS for shipping by 2024. An ETS for commercial road transport, on the other hand, is still under discussion and may not be implemented for several years.

Danish Shipping believes that the EU's proposed plan to increase short seaborne trade by 25% by 2030, and by 50% by 2050, could be held back by the ETS.

By Nithin Chandran

Please get in touch with comments or additional info to news@engine.online