The Plenary of the EU Parliament voted on two dossiers which will have an important impact on the EU shipping sector. Europarliamentarians ratified the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and supported the reform of the European Emissions Trading System (ETS), the EU carbon market designed to reduce the Union´s emissions by obliging companies to buy and trade allowances for its year emissions. This review of the ETS would imply the inclusion of the emissions produced by the shipping sector if the IMO failed to reach a global framework by 2023.

An ample majority of Members of the EU Parliament voted in favour of ratifying the CETA. The agreement will remove tariffs on most goods and services, removing trade barriers to EU companies both within the public and private sectors. Canada is the 10th EU biggest partner and CETA is expected to increase EU-Canadian trade by more than a 20% when the agreement is implemented. The deal could apply provisionally on the 1st of April at the earliest. Nevertheless, as CETA is a mixed agreement, meaning it affects areas of national competence, it has to be ratified by the 28 Member States. This process of national ratification could still cause plenty of trouble if national parliaments rejected it.

Regarding the reform of the ETS, Members of the Parliament backed the plans to include shipping carbon emissions in the European scheme if the IMO fails to approve a comparable system at the global level in 2021. The decision if implemented, would force shipping companies to buy ETS allowances from 2023 or pay an equivalent amount into a new Maritime Climate Fund. The initiative has been criticized by shipowners associations and IMO for it could jeopardize the EU IMO cooperation and international negotiations to define a global framework while reducing the competitiveness of the EU shipping sector. Still, this initiative could be blocked by the Member States as MEPs will now enter into negotiations with the EU Council in order to reach a common agreement. These triangular discussions (Commission, Parliament and Council) could take more than a semester.

Categories: News

0 thoughts on “EU Parliament decides on shipping emissions and trade”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

News

ETA warmly receives “Connecting Ships, Ports and People” as the 2017 World Maritime Day theme

“Connecting Ships, Ports and People” has been selected as the World Maritime Day theme for 2017 following a proposal by Secretary-General Kitack Lim to the IMO Council. The theme would provide, according to Mr. Lim, Read more...

News

Estonia´s Council Presidency to focus on the digitalisation of transport

Estonia replaced Malta at the helm of the EU Council. Being an insular nation and a shipping power, Malta gave great relevance to maritime policy during its 6 months Presidency. Estonia, for its part, as Read more...

Events

Another successful Annual Meeting of ETA

The European Tugowners Association gathered in Edinburgh for its 53rd Annual Meeting between the 11th and 13th May 2016. The event, hosted by Svitzer, attracted one of the largest turnouts of attendees ever with over Read more...