European ports warn against carbon leakage from emissions trading system
The European Sea Ports Organisation (ESPO) says that carbon leakage needs to be addressed before shipping becomes part of the EU Emissions Trading System (EU ETS).
PHOTO: European Parliament headquarters in Strasbourg, France. Getty Images
While welcoming shipping's inclusion in the EU ETS, ESPO says that the European Parliament and Member States in the European Council should protect the competitiveness of European ports and avoid carbon leakages to neighbouring ports.
“Rerouting to ports outside the EU, or a modal shift to road are to be seen as failures of the system," ESPO secretary general Isabelle Ryckbost says.
The Danish shipowners association has voiced similar concerns about a competitive imbalance between the road haulage and short-sea shipping sectors. It argues that the ETS will push maritime transport costs higher and potentially lead customers to opt for road transport.
EU authorities agreed last month to implement an ETS for shipping by 2024. Voyages between EU ports, as well as voyages between EU ports and third countries, will be included in the proposed scheme, according to European Parliament member Peter Liese.
“A lot however will depend on the application of the provisions foreseen in this (EU ETS) agreement. It will be of crucial importance to monitor from day one in view of identifying possible unwanted consequences at a very preliminary stage,” the ESPO’s Ryckbost says.
The ESPO has urged policy makers to earmark revenue generated from the shipping EU ETS for the maritime sector only, through creating an "Innovation Fund".
It says the fund should support deployment and use of new technologies, sustainable alternative fuels, and for building onshore power infrastructure in ports.
By Shilpa Sharma
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