The International Chamber of Shipping (ICS) has actually launched a declaration adhering to the European Commission’s recommended expansion of the EU’s Emissions Trading System (ETS) to cover the global delivery market.

Guy Platten, assistant general of ICS, commented: “Other than as an ideological revenue raising exercise, which will greatly upset the EU’s trading partners, it’s difficult to see what extending the EU ETS to shipping will achieve towards reducing CO2, particularly as the proposal only covers about 7.5% of shipping’s global emissions. This could seriously put back climate negotiations for the remaining 92.5% of shipping emissions.”

“We know that non-EU States like Japan have already expressed concern over this diplomatic overreach and imposition of a unilateral and extra-territorial tax on trade. It cannot be equitable for non-EU shipping companies to be forced to pay billions of euros to support EU economic recovery plans, particularly under a scheme that undermines CO2 negotiations.”

Image Credits: Shutterstock/ ics-shipping. org

“It is clear from exactly how such plans operate in various other industries that there will certainly be unintentional effects from the charge of such a proposition. There are easier as well as much more reliable alternatives– such as an international gas levy– however these need political management as opposed to political suitability. Another essential concern for ICS is that who spends for the expense of gas must coincide individual that inevitably pays the expense of carbon allocations.

“The failing to consist of financial investment in r & d in the propositions, each time when the IEA as well as the brand-new United States management are highlighting that discharge decrease will just be feasible with the advancement of innovations that do not presently exist, is frustrating. To suggest something at the start of the procedure and after that to withdraw it to spend for a message covid healing sends out a clear message to sector that the EU is not absolutely major concerning decarbonising worldwide delivery. This likewise sends out a message past delivery that political as well as financial investment threat is high inEurope This just mosts likely to reveal why we require the 5 billion USD IMO Maritime Research Fund.

“Volatility in the cost of allocations makes this strategy even more difficult to hand down the expense to the business that spends for the gas, specifically for most of smaller sized delivery firms that make up most of delivery. This proposition is excessively governmental. The sector’s frustrating choice is for an international levy which will certainly incentivise genuine discharge decreases as opposed to bureaucracy.

“It is clear that there will certainly require to be an independent effect evaluation of these propositions asap, to guarantee that we are not sleepwalking in the direction of unrestrainable prices for worldwide profession.

“ICS will along with industry partners will be reviewing the latest draft proposals in detail and will continue to highlight these concerns in discussions with the EU Council and the European Parliament. We need urgent action but action must result in decarbonisation rather than a pure money grab.”

Reference: ics-shipping. org