\u201cWe\u2019re \u2013 cautiously \u2013 optimistic… but it\u2019s a mixed bag,\u201d Lars Robert Pedersen of BIMCO told TMS.<\/p>\n
This may be the point: the Green Deal\u2019s challenges and opportunities are designed to both be far reaching and intertwined in a way that\u2019s never before been attempted.<\/p>\n
Along with enshrining 2050 climate-neutrality in law and increasing the 2030 target to at least 50% from its current 40%, it\u2019s looking to tighten the European Emissions Trading Scheme, broaden its reach and by the way, close existing tax exemptions for maritime fuels \u2013 which is, according to Pedersen, \u201ccomplex\u2026 and a very hot potato for member states\u201d.<\/p>\n
Further, alongside the Euro-ETS, the Deal states it wants to \u201cregulate access of the most polluting ships to EU ports and to oblige docked ships to use shore-side electricity\u201d. It\u2019s also ambitious enough to push for phasing out investment in fossil-fuel infrastructure in partner countries using \u201cdiplomatic and financial tools\u201d.<\/p>\n
However, on the other hand, it\u2019s trying to open what it calls \u201ca sustainable blue economy\u201d.<\/p>\n
So, there\u2019s money for clean technology, a pot which could amount to \u20ac10 billion. \u201cIt\u2019s important to highlight, the shipping sector is eligible for this finance,\u201d said Sam Van den plas, Carbon Market Watch policy director: \u201cFor example, fuel cells and renewable, green hydrogen power could be supported through the innovation fund,\u201d largely through EU programmes such as Horizon Europe.<\/p>\n
\u201cThis is very positive… they\u2019ve recognised shipping is a very efficient form of transport, and want to ramp up sustainable transport fuels. This can really drive our decarbonisation future,\u201d said Pedersen, pointing to the priority put on disseminating green energy infrastructure.<\/p>\n
However, there are definitely layers of ambiguity, added Pedersen. For example, while the Deal implies it wants to bring shipping inside the European Emissions Trading Scheme (ETS) by June 2021, \u201cit also says it wants to develop international carbon markets with global partners\u201d, adding for shipping \u201cthis means IMO\u201d.<\/p>\n
But does the inclusion in the EU ETS compromise potential IMO moves to put a price on shipping\u2019s carbon?<\/p>\n
Certainly, back in 2017 IMO Secretary-General Kitack Lim said: \u201cInclusion of emissions from ships in the EU-ETS significantly risks undermining efforts on a global level.\u201d<\/p>\n
But Van den plas disagrees: \u201cIt could be compatible with IMO rules, which might take into account the IMO levy or carbon price and subtract it.\u201d He added: \u201cMost importantly, what the European ETS does is establish a floor on carbon pricing and encourage IMO to move forward.\u201d<\/p>\n
There are challenges. As the Deal states \u201cthe ecological transition will reshape geopolitics, including global economic, trade and security interests\u201d, and it recognises that \u201cas long as many international partners do not share the same ambition as the EU, there is a risk of carbon leakage\u201d.<\/p>\n
There may be some consolation for clean shipping companies: the new \u2018carbon border adjustment mechanism\u2019 (which aims to level the field against high-carbon, lower-cost imports), will embrace transport, so shipping companies offering a low CO2 footprint should gain European business.<\/p>\n
But it will be some time before all this reaches the law books. \u201cWe have to remember, this is a policy document not legislation – and there\u2019s a lot that needs working out,\u201d said Pedersen. \u201cWhat is real, what is pressure, is difficult to ascertain \u2013 but still, although there are concerns, we are positive.\u201d<\/p>\n
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The Green Deal, unveiled by EC President Ursula von der Leyen, is now on the table, but what are we to make of it? The implications certainly require a considered look, writes Stevie Knight.<\/p>\n","protected":false},"author":8,"featured_media":382,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12],"tags":[],"sponsor":[],"class_list":["post-381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/posts\/381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/comments?post=381"}],"version-history":[{"count":0,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/posts\/381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/media\/382"}],"wp:attachment":[{"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/media?parent=381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/categories?post=381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/tags?post=381"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.motorship.com\/propulsion-and-future-fuels-conference\/wp-json\/wp\/v2\/sponsor?post=381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}