Climate impact of exemptions to EU’s shipping carbon pricing

In July 2021, the European Commission published a set of proposals to decarbonise the maritime sector. However, the proposed carbon pricing scheme (ETS) and the low GHG fuel standard (FuelEU Maritime) will only apply to ships above 5,000 GT and exclude a number of ship types such as offshore vessels, fishing vessels and yachts.

These proposals will play a crucial role in the future of the sector. It is therefore crucial that the thresholds and exemptions that determine which ships fall under the regulations are justified. T&E has analysed the current proposals to find that too many heavily emitting ships would be let off the hook. T&E instead recommends a system which is based on an emissions threshold and not based on size. This would cover more emissions without adding an administrative burden to the industry.