The proposed fuel mechanism announced today for the maritime sector follows the policy logic already used in aviation. Helping close the price gap between conventional and alternative fuels can encourage uptake, support investment in production and position Europe as a leading alternative fuel bunkering hub.
“Liner shipping has already invested over €160 billion in ships that can operate on renewable fuels, but these cleaner ships need cleaner fuels,” said Simon Bergulf, Vice President, Environment and Climate at World Shipping Council. “Closing the price gap is one of the most practical ways to get those fuels into ships’ tanks.”
Sustainable maritime fuels can still cost from 100 to 400 percent more than conventional marine fuels, making the price gap one of the biggest barriers to uptake.
Reinvesting a significant share of ETS revenues in maritime decarbonisation is both a sensible and necessary step to meet the EU’s climate goals. WSC believes those ETS revenues could also be used to strengthen European ports, including through alternative fuel infrastructure and electrification, benefitting all who call European ports and contribute to ETS.
WSC also welcomes recognition that the current ETS design can make European ports more expensive and less competitive for cargo moving between two non-EU markets and transhipped in Europe.
However, WSC is concerned by the Commission’s proposal to expand the transshipment list of neighbouring non-EU ports based on infrastructure alone. Ports within 150 nautical miles of the EU could be penalised simply because they have deep water, long berths and ship-to-shore cranes, regardless of whether transhipment is taking place.
“The ETS should be focused on cutting emissions, not making neighbouring non-EU ports less competitive,” Simon Bergulf said.
WSC also noted that it would like to see a firmer commitment in the final ETS revisions against double payments once a global measure is adopted at the IMO. “That certainty would strengthen Europe’s position in global negotiations and support progress at the IMO,” Simon Bergulf said.
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