The European Parliament’s Rapporteur on the EU Emissions Trading System (ETS), MEP Peter Liese, on 14 January 2022 published a Report on the revision of the EU ETS, in the framework of the “Fit for 55” legislative package for Shipping.

The Cyprus Shipping Chamber notes with satisfaction, that the Report recognises the role of the commercial operator and introduces the requirement for a binding clause in contractual agreements between shipowners and commercial operators thus applying the “polluter pays” principle to Shipping.

Shipping is willing to contribute its fair share to address the climate crisis and whoever takes operational decisions affecting the CO2 emissions, should be responsible for them. As such, the commercial operators should pay for the ETS costs. It is the only way, under the EU ETS, to address the right entity and to incentivise the uptake of further operational efficiency measures and cleaner fuels.

In addition, the Report proposes the development of an “Ocean Fund”, calling for 75% of revenues from Shipping’s ETS allowances, to be invested back in the Shipping sector to stimulate technological and operational developments for a sustainable transition of shipping to zero carbon fuels and greener technologies for ships and operators.

The Chamber believes that the above positions, included in the Report, are a welcome first step. We hope that the EU Parliament will adopt them during its plenary meeting later this year and that the EU Commission and the EU Council will also embrace them, in the process of arriving at a pragmatic and effective inclusion of maritime transport in the EU ETS.