WSC calls on the EU institutions to work together in the trilogue process to ensure that EU ETS provides the correct market signals for decarbonising the shipping industry in support of the EU Green Deal GHG goals.
WSC recognises the commitment of the European Parliament to strengthen the EU’s climate ambitions through the reform of the EU ETS.
However, the Parliament position on the responsible entity presents a loophole to shield shipowners with a mandatory contractual pass through of costs to operators, delaying innovation.
“Rapid investment in green vessels and fuels requires that EU ETS engage all parties – vessel operators, charterers, and shipowners.
Legislation that is narrow and includes binding-pass through clauses will distort the market signal and delay progress to reduce greenhouse gas emissions,” says John Butler, President & CEO of WSC.
The payment of EU ETS compliance costs should be determined by the contracting parties themselves; negotiating the shared challenge of decarbonisation is best achieved without contractual terms imposed by legislation.
We urge the co-legislators in the upcoming trilogue process to remove the binding contract requirement.
WSC stands ready to further engage with the EU institutions to ensure that the reform of the EU ETS is ambitious, effective and practical.