Page 4 - EurOil Week 38

EurOil COMMENTARY EurOil

EU Parliament backs applying

emissions trading to shipping

Shipowners have already invested heavily in upgrades to meet IMO standards.

Paying for their carbon emissions will mean significantly higher operating costs

EUROPE THE European Parliament has backed the inclu- sector to adequately reduce emissions. Applying
sion of pollution from ships in the EU emissions the ETS to shipping is therefore needed. Greens
WHAT: trading system (ETS), a move that would burden lawmaker Jutta Paulus of Germany said the vote
MEPs want ships to the industry with significantly higher operating was “a strong signal in line with the European
pay for their emissions costs. Green Deal and the climate emergency.”
starting in 2022. From 2022, ships with a gross tonnage of “Monitoring and reported CO2 emissions
more than 5,000 will have to pay for carbon per- is important, but statistics alone do not save a
WHY: mits to cover their emissions when they make single gram of greenhouse gas,” she said. “That’s
Lawmakers argue that voyages within Europe or travel to and from an why we are going further than the Commission
existing IMO rules do EU port, under the new proposals. MEPs on proposal and demanding tougher measures to
not motivate shipowners September 16 voted 520 to 94 in favour of add- reduce emissions from maritime shipping.”
to make large enough ing shipping to the ETS, while 77 lawmakers MEPS also want to see shipowners commit to
reductions in emissions. abstained. lowering their annual CO2 emissions by at least
The European Commission earlier this year 40% by 2030. Parliament will next negotiate with
WHAT NEXT: proposed aligning EU emissions rules with member states on what final shape the legislation
A new study by DNV GL those of the International Maritime Organisa- takes.
sees LNG as a transition tion (IMO). Stricter IMO rules came into force An Aframax tanker could be saddled with an
fuel in shipping, while this year regarding the sulphur content in marine extra $4,000 per day in costs to meet ETS criteria,
painting a bleak future fuels, forcing shipowners to invest heavily in ves- investment firm Clarksons Platou Securities has
for hydrogen. sel upgrades and refiners in developing cleaner estimated. This figure assumes fuel consump-
fuels. tion of 40 tonnes per year (tpy), emissions of 3.1
The Parliament has gone further, after MEPs tonnes of CO2 per tonne of fuel, and an emis-
argued that IMO rules had not encouraged the sions certificate price of €30 per tonne. This extra

P4 www. NEWSBASE .com Week 38 24•September•2020