The European Commission has proposed adding shipping to the bloc's carbon market for the first time, in a move that is set to shake up the industry after years of avoiding pollution charges by the bloc.
But already there is disagreement about how it will work given the complexities of the shipping industry and how fast it can decarbonise.Register now for FREE unlimited access to Reuters.comWith about 90% of world trade transported by sea, shipping accounts for nearly 3% of the world's CO2 emissions.
Last July the European Commission proposed adding shipping to the ETS gradually from 2023 until 2026 when shipowners would need to buy permits covering all their emissions inside the EU and 50% of their emissions from international voyages starting and ending in the EU.However, the European Parliament wants shipping phased into the ETS earlier, by 2025.
The European Commission's proposal faces months of discussions. The European Parliament and EU countries can ask for changes to the text and agree on a final version.There are divergent views within the commercial shipping industry, which is made up of different segments including container, oil tanker and dry bulk.
"Ship greenhouse gas emissions result from the combination of design technology, fuel consumed, and operational practice," said WSC Chief Executive John Butler.
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