“If the EU implements a regional ETS, shipping risks getting hit by multiple emission trading systems which will make a global MBM (Market Based Measure) much more difficult to achieve,” states David Loosley, BIMCO Secretary-General

Instead, BIMCO prompts the EU to deal with the worldwide neighborhood at the International Maritime Organization (IMO) to obtain a worldwide market-based step developed, when the needed modern technology is offered, which would certainly guarantee the market operates an equal opportunity.

Representation Image– Credits: IMO Collection/ flikr.com

When the EU tried to unilaterally impose its ETS on airline companies flying in or out of EU in 2012, it was consulted with rigid resistance from big nations, such as China, India and also the UNITED STATE; an EU-imposed local ETS for delivery might cause comparable feedbacks.

“Given the international political climate in 2020, I see it as much more likely today that the EU ETS will be met with retaliation from its international trading partners over such a move,” Loosley states.

No motivation to boost carbon discharges

According to an ECSA and also ICS research on the ramifications of using the EU ETS to worldwide delivery from July 2020, the incorporation of local trips has actually not brought about discharges decreases for the aeronautics field. In reality, discharges from trips covered by the EU ETS have actually climbed by 26% considering that 2012.

In enhancement, a local market-based step falls short to incentivise shipowners to buy carbon-reducing modern technologies.

“When you build a ship, you don’t know how often it will call at EU ports during its 25-year lifetime. That makes it impossible to calculate when an investment in carbon-reducing technology will have paid off. The consequence is that a regional ETS will not change how ships are built – it will just be a tax that ultimately ends up with the consumers,” states Loosley.

Such a step might additionally adversely impact the great belief in between IMO member-states, lowering the chance of a worldwide step which would certainly have a much more powerful impact.

“When there are viable technology solutions commercially available to reduce carbon emissions, BIMCO will fully consider market-based measures to drive the uptake of such technologies,” Loosley states. “In the meantime, BIMCO advocates for an International Maritime Research Fund to drive innovation, paid for by a mandatory contribution on fuel used by ships, into technology the industry needs to cut carbon emissions by 50% in 2050 and ultimately eliminate those emissions.”

Reference: bimco.org