EU Shipping Emissions Policy and Global Climate Commitments

No time to read?
Get a summary

The sea transport sector will begin paying for greenhouse gas emissions starting in January, a step already taken by aviation and expanding to heavy polluting sectors and industries such as refineries, cement, steel and glass. Until now, the European Union had kept this sector largely exempt under the EU Emission Trading System.

This policy sparked protests from the port sector and the maritime logistics chain. It creates a pressure point for ships arriving from the Americas and Asia to call at North African ports outside the EU in order to sidestep higher costs.

More sustainable technologies

The new rule keeps pushing the industry toward decarbonization and accelerates the adoption of cleaner technologies among shipping companies. It is part of the European plan to cut overall emissions by 55 percent by 2030. In maritime transport, the goal is to lower emission intensity from fuels used in shipping operations from current levels toward substantial reductions by 2030 and beyond.

The regulations include a special incentive regime that supports the adoption of renewable fuels of non biological origin. Revenues generated from emissions payments will be reinvested in projects that help decarbonize the maritime sector.

The shipping levy discussed by many nations is aimed at climate action. Pexels

Rail as an alternative impulse

During the process, the rules were adjusted to ensure that only half of the emissions produced on routes linking European ports to destinations outside the EU would be taxed, while full accounting would apply to connections within the EU. The objective is to encourage less polluting rail transport. However, port stakeholders warn that emissions could rise if road transport is favored within the EU.

The rollout will be gradual: next year ships over 5,000 tonnes will pay 40 percent of their emissions; 70 percent of emissions from connections within the EU in 2025 and 100 percent in 2026. This year a broader set of pollutants will be included in calculations, including methane and nitrous oxide.

Port locations and carbon policy

The framework coincides with the gradual introduction of the Carbon Border Adjustment Mechanism inside the EU, which taxes imports from countries with looser emission rules to prevent unfair competition and protect European industry. At a recent meeting in the Port of Barcelona with leaders from major Mediterranean ports, the heads of state ports organizations called for a moratorium on the implementation of the rule by some member states.

Global regulation in 2025

The move is expected to be supported by the International Maritime Organization, the global body tasked with setting safety, security, and environmental standards for shipping. For the policy to gain worldwide traction without harming European ports, a coordinated approach is essential.

The IMO notes that a global regulation could include a pricing mechanism for marine greenhouse gas emissions in 2025. This would be paired with a mandate for ships to adopt zero emission technologies and fuel efficiency improvements. The aim is to see a portion of energy use come from low and zero emission sources by 2030.

Country commitments

All of this fits the broader strategy approved by the IMO last July, with the goal of cutting CO2 emissions from international shipping by 20 to 25 percent by 2030 and more than 70 percent by 2040. Some countries face greater challenges in implementing these changes due to development levels and resources, and will require support measures under the IMO framework.

Absent regulatory changes, emissions from international shipping are projected to remain a meaningful share of global emissions and could continue to grow. The regulatory text under the European Council supports global leadership in green technologies, services, and solutions, while preserving competitiveness and promoting job creation in related value chains.

No time to read?
Get a summary
Previous Article

Escalated Robberies and Police Response in Alicante

Next Article

Chet Hanks Shares Rare Photo With Tom Hanks; Volkova Posts About Son Samir