The European Parliament agrees to include ship emissions in the European carbon market

European parliamentarians agreed on Tuesday to include international carbon emissions from the maritime sector in the EU emissions market, putting the spotlight on an industry that still does not pay for the pollution it generates.

They also called for binding targets for shipping companies to reduce the average annual _CO2 emissions of all ships in operation, by at least 40% by 2030 compared to 2018 levels, going beyond an original proposal from the European Commission.

Pollution from ships sailing in international waters often escapes countries’ emission reduction targets, but the Commission has said the sector must contribute to its €1 trillion plan to achieve a “climate-neutral” economy by 2050.

Shipping companies are not yet included in the EU Emissions Trading System (ETS), which forces factories, power plants and airlines to pay for the pollution they generate with their activity. The EU executive plans to incorporate them in 2021 so that the sector joins the bloc’s efforts to reduce greenhouse gases.

While the UN shipping agency has taken steps to reduce sulphur dioxide emissions from ships, a comprehensive plan to tackle _CO2 is still years away.

The European Parliament’s environment committee also called for the creation of an “Ocean Fund” from 2023 to 2030, financed by revenues from the auctioning of allowances within the framework of the European market, to make ships more energy efficient.

“Emissions from global maritime traffic are expected to increase by 50% to 250% by 2050, which is not compatible with the long-term climate neutrality target,” said Swedish PARLIAMENTARIAN Jytte Guteland, who led the committee’s talks on the issue.

The full legislative assembly will vote in September on the approval of the rules. Once the European Parliament has agreed its position on this matter, discussions will begin with the Commission and national governments in the Council of the EU on the final terms of funding.

Last year, the Mediterranean Shipping Company (MSC) overtook Ryanair in europe’s 10 largest carbon dioxide emitters in 2019, a list that remains dominated by large coal-fired power plants, according to EU data.

Source: Reuters