ECSA, the approval of the Council of the EU to the inclusion of shipping in the ETS is good, but the funds for the decarbonization of the sector are not enough
Philis: Allocating ETS revenues to shipping is key to bridging the price gap between clean and conventional fuels
July 1, 2022
ECSA's applause goes to the strong support given by ministers of the Environment within the Council of the EU to the obligatory the transfer of EU ETS costs to the operating entity commercially the ship, on the basis of the "polluter" principle pay", Council common position - recalled the shipowners' association - which follows the recent adoption of a similar position on the part of the European Parliament (
of 22 June 2022). ECSA pointed out that "also the maintenance of the transitional period and gradual inclusion of Maritime transport emissions over a period of four years are essential to ensure a smooth transition for the sector.'
In addition, if the shipowners' association has welcomed also the commitment expressed by the Council of the EU to ensure specific attention to shipping through specific calls for tenders under the ETS Innovation Fund, which is Instrument for financing projects on the use of innovative technologies with low CO2 emissions, however ECSA considers that 'this commitment is not sufficient to support innovation and to bridge the considerable price gap with the clean fuels'. The association therefore invited 'to allocate ETS revenues to the energy transition of the maritime sector, as proposed by Parliament'.
"It's encouraging," the president noted. of ECSA, Philippos Philis - that a particular attention to maritime transport within the framework of the Fund for innovation, but the Council's position is lacking with regard to the allocation of revenue. The attribution of revenues to the sector - underlined Philis - is fundamental to close the price gap between clean fuels and conventional fuels through, inter alia, contracts for difference on the price of carbon. We urge the Council to make a a further step forward in the course of the negotiations and to move closer to the Parliament's position. 80% of current ETS revenues - specified the president of the shipowning association - used for the energy transition of other ETS sectors and we need to see that the same happens for transport maritime. It is - underlined Philis - a moment decisive for the decarbonization of shipping and for the competitiveness of the sector'.
Referring then to the support that the Council of the EU has manifested to the proposal to address the issues of Ice Class notations of ships and to introduce provisions specific to small islands and outermost regions, the ESCA has expressed its firm willingness to engage with the Council and with Parliament to find an appropriate solution.
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