INTERCARGO: EU beginning to grasp realities of shipping

(Posted on 07/02/22)

The recent proposal by MEP Peter Liese to update Amendment 9 of the EU emissions trading system (ETS) draft directive and support the ‘polluter pays’ principle is cautiously welcomed by INTERCARGO, the international association representing the world’s quality dry bulk shipping sector.

This recognition that often the shipping company is not the commercial entity controlling the ship operation, and thus is not responsible for the resulting GHG emissions, is long overdue.

INTERCARGO provides the forum where dry bulk shipowners, managers and operators are informed about, discuss, and share concerns on key topics and regulatory challenges, especially in relation to safety, the environment, and operational excellence.

INTERCARGO Chairman, Dimitrios Fafalios says: “Although we retain our reservations on the EU emissions trading system (ETS) as a whole, we are pleased to see the EU take steps in the right direction, as regulators finally grasp some of the realities of our industry.

“Trading patterns within the dry bulk sector are diverse and dispersed. A significant share of the bulk carriers’ operation is administered by charterers, which not only take responsibility for purchasing the fuel, but also take operational decisions that directly affect the CO2 emissions of the ship, such as speed

of transit.

“At the same time, whilst the proposal recognises the need to establish a contractual requirement between the shipowner and commercial operator to pass on the costs, it must be understood that this will be easier said than done.”

Despite this move, INTERCARGO is still firmly committed to supporting the role of the IMO (International Maritime Organization) as the global forum and regulator for driving the elimination of all CO2 emissions from shipping worldwide.

The Association does, however, support any initiative designed to ease this transition for ship operators, and as such supports Mr Liese’s proposal for the establishment of an Ocean Fund to finance R&D into maritime decarbonisation and to fund R&D projects aimed at bridging the price gap between cleaner and conventional fuels.