Emissions scheme will scupper CO2 reduction

Instead, BIMCO urges the EU to work with the IMO to establish a global market-based measure which would ensure the industry operates on a level playing field.

“If the EU implements a regional ETS, shipping risks getting hit by multiple emission trading systems which will make a global ETS much more difficult to achieve,” said David Loosley, BIMCO secretary general.

Airlines became subject to the ETS in 2012 but, according to a study by the European Community Shipowners’ Association and the International Chamber of Shipping, the inclusion of regional flights has not led to emissions reductions for the aviation sector, rising by 26% instead. Moreover, it is argued that a regional market-based measure fails to incentivise shipowners to invest in carbon-reducing technologies.

“When you build a ship, you don’t know how often it will call at EU ports during its 25-year lifetime,” explained Mr Loosley. “That makes it impossible to calculate when an investment in carbon-reducing technology will have paid off.

“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,” he said.