EU ETS won't work for shipping

The head of the UK's shipping trade body has rejected the EU emissions trading scheme (ETS) as an effective way to lower greenhouse-gas (GHG) emissions from the sector.

Ahead of publishing documents to encourage debate on how best to cut future emissions from shipping firms, Mark Brownrigg, the director general of the UK Chamber of Shipping, came out against the EU ETS saying it wasn’t suitable for the sector.

“This is a complex international debate for which we need active participation from the shipping industry and governments to find a genuine solution,” he said. “This must be global rather than regional.”

On Tuesday (9 August) the chamber launched two “manuals”, each describing a potential economic mechanism to encourage companies to lowering CO2 emissions, saying it was time to build on the technical improvements that are being made to the energy efficiency of ships, with a financial incentive to cut emissions.

One of the documents outlines how a global sector-specific cap-and-trade scheme might work, while the other discusses the possibility of a GHG contribution fund, in which shipping companies would contribute from purchases of fuel. Brownrigg warned that it was crucial not to discount either of the possible mechanisms at the this time.

“The debate lies ahead on which option will provide greater certainty of outcome, ease of application, and without damaging the growth of the industry and world trade. That debate must be based on practical considerations rather than conjecture,” he said.

The chamber’s announcement follows the International Maritime Organisation’s recent adoption of the Energy Efficiency Design Index. The index is the first globally binding measure to improve energy efficiency of new ships and sets technical standards for certain categories of new ships.

The aim of the index, which will become mandatory from 2015, is to cut CO2 emissions from international maritime transport by 25-30% by 2030.