Suggested improvements to the shipping ETS:
- The gross tonnage threshold and the inclusion of other ship types must be reconsidered – The current exemptions for ships under 5,000 gross tonnes (GT) and ships types not carrying cargo or passengers are set to exempt 25.7 Million tonnes (Mt) of CO2. GT is not the best parameter and that a ship’s carbon emissions should decide its payment. Ships and maritime activities that are currently not under the scope of EU MRV (e.g. offshore, marine constructing vessels, etc.) should be introduced at a later stage after a phase in period. The phase in period should be used to establish an appropriate EU MRV which fits for these specific maritime activities, since they don’t operate between two ports and have a different operational profile compared to cargo and/or passenger trade.
- Ensure revenues are geared towards maritime decarbonisation – Dedicated financial support is needed for the maritime sector to develop and operate zero-emission vessels. As such, a for shipping dedicated financial mechanism must be adopted by the Parliament and Council and should include support for R&D as well as the deployment of clean fuels through Carbon Contracts for Difference (CCfDs) and for the corresponding supply chain investments. Only a dedicated financial mechanism and maritime CCfDs would ensure enough business and investor confidence to guarantee shipping’s green transition.