Two of the largest organisations representing European port authorities, operators and associations, has raised concerns about shipping firms rerouting vessels to dodge new carbon tax regulations.
The Federation of European Private Port Companies and Terminals and the European Sea Ports Organisation (ESPO) raised their concerns this week ahead of the EU Parliamentary vote on the revised EU Emissions Trading System (ETS) that takes place on 13 March.
The revised ETS will apply to maritime shipping and, after a phase-in period between 2024-2026, will require shipping companies to submit allowances covering 100% of emissions on intra-EU voyages (between two ports in the EU) and in ports, and 50% of emissions on extra-EU voyages (between a port in the EU and a port outside the EU).
ESPO and FEPORT said in a joint statement that the organisations welcomed the inclusion of maritime in the EU ETS as part of decarbonising shipping, but warned about shipping lines dodging the rules.
“Managing bodies of Europe’s ports (ESPO) and private port companies and terminal operators (FEPORT) support financial incentives to speed up the greening of shipping. Nonetheless, the geographical scope of the EU ETS Maritime agreement could still lead to evasive port calls where shipping companies can avoid paying into the ETS by adding a call to a port outside the EU, or by reconfiguring their routes,” said ESPO and FEPORT.
“Evasion will threaten the integrity of the ETS, leading to higher emissions from longer voyages whilst failing to push shipping companies to green their operations. Fewer allowances being auctioned will mean less revenues available for the decarbonisation of the sector. Evasive port calls will negatively affect employment and business activity in certain ports in the EU, and undermine their strategic role as hubs of transport, renewable energy, and connectivity,” the organisations warned.
“Evasion from the maritime EU ETS is a serious concern that continues to pose a threat to the credibility and robustness of the EU ETS. Early action is crucial as changes in port traffic and the reconfiguration of shipping routes are almost impossible to reverse once they occur,” the organisations said.
The organisations said more should be done to ensure monitoring and effective prevention of carbon and business leakage from EU ETS Maritime.
“It is a positive signal that the political agreement takes the risks of evasion into account, and ESPO and FEPORT appreciate that the Commission will monitor and report on the impacts of EU ETS Maritime on port traffic, port evasion and traffic shift of transhipment hubs. Port managing bodies and terminal operators strongly support that the Commission acts as soon as evasion is identified,” the organisations said.
FEPORT and ESPO said they also valued legislators’ efforts to introduce a definition of “port of call” which excludes stops in container transhipment ports neighbouring the EU, to be defined via Implementing Acts.
