European ports are urging the European Commission for an urgent review of the maritime EU-ETS to curb traffic and carbon leakage

The ESPO organization warns that the current system penalizes transshipment in Mediterranean ports and leads to a transfer of cargo from the sea to the road.

European ports are urging the European Commission for an urgent review of the maritime EU-ETS to curb traffic and carbon leakage
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The European Sea Ports Organization (ESPO) has launched an appeal to the European Commission to ensure that the ongoing review of the EU-ETS Directive (2003/87/EC) corrects the negative effects that the emissions trading system applied to maritime transport is generating on the competitiveness of European ports and on the very decarbonization objectives themselves.

The European Commission is currently working on finalizing a proposal to revise the directive, which was extended to the maritime sector in January 2024. Since 2021, when the proposal for the maritime EU-ETS was presented, European ports have been calling for an evaluation and addressing of the negative impact arising from the system's limited regional scope, which imposes a 100% levy on journeys between ports in the European Union and 50% on calls entering and leaving European ports.

According to ESPO, the first and main effect is felt in the large transshipment ports of the Mediterranean, but there are also clear examples of changes in the order of calls in other parts of Europe, resulting in a loss of direct connectivity with Asia, among other markets. In addition to the loss of calls and connectivity, the affected ports are experiencing an impact on investments in terminal capacity, while capacity in EU neighboring countries is growing sharply and rapidly to the detriment of community ports.

Isabelle Ryckbost, Secretary General of ESPO, stated: "The European Commission and policymakers in Europe must finally learn the lessons from these first years of application. It is time to act. European ports are key to achieving energy transition, energy security, and military preparedness objectives for Europe. We cannot continue to accept a policy that generates carbon leakage and threatens to destroy the economic strength and competitiveness of strategically located ports that we need to achieve European ambitions in terms of geopolitical and geoeconomic resilience, energy transition, and security."

ESPO also warns that the maritime EU-ETS is negatively impacting short sea shipping in certain countries, with clear examples of modal transfer to the road, a sector that remains excluded from the emissions trading system until 2028. "For decades, Europe has pursued a clear policy of shifting traffic from road to sea through its well-known sea motorway concept. The current EU-ETS is doing everything possible to return short sea shipping cargo to the conventional highway," added Ryckbost.

ESPO has presented its proposals for the system revision to the Commission. The main priority is to reach a global agreement followed by an immediate alignment of the European system. Pending that agreement, European ports are requesting the removal of the 65% transshipment criterion for the list of neighboring container transshipment ports excluded from the definition of a call port, they oppose the extension of the scope to new types of vessels, ask for greater attention to the specific impact on outermost regions, and demand that a much larger proportion of the revenues from the maritime EU-ETS be reinvested in the maritime and port sector.

Ryckbost concluded: "ESPO and its members are and will remain fully committed to Europe's decarbonization agenda. However, the unintended impact of the current EU-ETS on both decarbonization and competitiveness cannot continue to be ignored. The European Commission is making great efforts and developing new tools to accelerate, reindustrialize, simplify, and strengthen European competitiveness and resilience. But these efforts are a drop in the ocean for ports if the maritime EU-ETS is not seriously reviewed."

- A D V E R T I S I N G -

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