EU ETS Review: Maritime Sector

As the EU reviews how the Emissions Trading System applies to maritime transport, Eurogas has set out its recommendations for a framework that is workable, proportionate and supportive of decarbonisation. Our paper addresses three areas where the Commission’s proposal could be improved, and includes concrete amendment proposals for the ETS Directive.

• Partial cargo discharge voyages. The maritime ETS should reflect the share of cargo actually delivered into the EU. When a vessel discharges only part of its cargo at an EU terminal and delivers the rest to a third country, charging ETS costs on the whole voyage risks making EU imports more expensive and effectively charges for commodities destined for non-EU markets.
• Sustainable maritime fuels and zero-emission technologies. Eurogas welcomes the reservation of allowances to support the uptake of sustainable fuels, including biomethane, RFNBOs, low-carbon hydrogen and their derivatives. To turn this into a strong investment signal, we call for greater predictability on the level of support and for safeguards ensuring that emerging fuels are not disadvantaged by a first-come, first-served approach.
• Extension of the ETS scope to ships between 5000 GT and 400 GT. Vessels of this size are typically run by smaller shipping companies with fewer resources to comply. Extending ETS obligations to them could bring significant administrative and financial burdens.

Together, these recommendations aim to keep the maritime ETS fair for importers, effective in driving investment in renewable and low-carbon fuels, and manageable for the operators who must comply with it.

Read the full paper