Port of Rotterdam Authority highlights measures to prevent EU ETS evasion

The Port of Rotterdam Authority has welcomed the European Parliament’s decision to make the Emissions Trading System (EU ETS) cover shipping and says the EU can take steps to avoid carbon leakage to other regions.

PHOTO: Port of Rotterdam Authority supports the EU's shipping emission reforms. Port of Rotterdam

The ETS reforms that were passed through a European Parliament vote last month will cover half of emissions from vessel voyages to and from EU countries between 2024-2026, before being expanded to cover 100% of these emissions from 2027.

Concerns have been raised over whether vessels can circumvent the ETS by various means. A big vessel could conceivably sail to a port just outside the ETS area to unload cargo, for a smaller vessel to pick up and bring across to a destination EU port. The voyage from a non-EU to EU port would then both be shorter and taken by a smaller vessel, resulting in less carbon dioxide emitted on the distance covered by the ETS, and lower emission costs.

Rotterdam says that vessels will find it harder to evade emissions costs by including non-EU ports within a 300 nautical mile periphery of the ETS area, and covering 100% of the emissions on extra-EU routes by 2027.

These steps will discourage vessels from circumventing the ETS, it argues.

On 22 June, the European Parliament voted in favour of ETS reforms. The next step is for the proposal to be negotiated between EU member states.