World Shipping Council (WSC), the lobby organization for container lines, is positive on the prospect of EU's inclusion of shipping in its Emissions Trading System (ETS), but it warns that if the EU reaches over its scope it could undermine other global initiatives at the International Maritime Organization.

"If the EU goes ahead with an ETS that reaches outside its borders, it runs a serious risk of alienating non-EU countries and making it more difficult to establish global market-based measures at the IMO. Why not instead take this opportunity to both achieve the Green Deal goals and drive faster international progress through strong European leadership?" asks John Butler, President and CEO of WSC, in a press release.

Intra-EU scope

However, if the EU opts for just an intra-EU scope, regional, instead of its extra-regional proposal, Butler believes the inclusion of shipping in EU ETS could be a success and provide a "decisive example about the need to introduce a carbon price for shipping without complicating that pathway for others by overlapping with their trade," according to the release.

The release outlines four bullet points as to what an intra-EU scope would achieve, e.g. that it would turn the EU into frontrunners that could drive global policy through IMO and thus reduce emissions internationally, and it would, according to WSC, enhance the competitiveness between member states internationally.

"The EU can lead global climate action, but it can’t succeed alone. Advancing fuel-technology pathways in global shipping requires the shared commitment and cooperation of industry, governments and international regulators. Through the ETS, the EU has a unique opportunity to strengthen, motivate and complement global policy for reducing greenhouse gas emission in international shipping," says John Butler.

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