Today, the European Commission presented its long-awaited ETS revision proposal. The text comes at a moment when the European Union is actively seeking smart policies that reconcile its decarbonisation objectives with industrial competitiveness. This ambition is at the heart of the ETS reform, including the adjustments proposed for the maritime sector.
Since the introduction of the ETS in July 2021, which extended the emissions trading system to the maritime sector as one of the flagship measures of the Fit for 55 package, FEPORT has consistently highlighted the potential negative impacts on the competitiveness of European ports.
The Directive applies to international shipping emissions from voyages between EU ports and non-EU ports, meaning that the shipping sector may reduce costs by avoiding calls at ports within the European Union.
The legislation in force since May 2023 already recognised this risk by excluding two of the EU ports’ main competitors — Tanger Med and East Port Said — from the definition of “port of call”. This means vessels including an additional stopover at one of these ports in their rotation will still pay the full ETS costs once they call at an EU port.
New criteria to address ETS evasion risks
While this measure represents an important mitigation tool, it does not cover all the evasion options available to shipping companies. FEPORT therefore takes note of the newly proposed criteria allowing additional ports to be included in the list of “neighbouring container transhipment ports”, based on reduced transhipment thresholds and additional criteria assessing ports’ capacity to accommodate transhipment traffic.
“However, it is unlikely that this proposal will be able to combat all forms of evasion, including transhipment and relay evasion that could pass through an EU port while both the origin and destination of the cargo remain outside the EU,” says FEPORT Secretary General Lamia Kerdjoudj.
Furthermore, the Commission appears to have overlooked that targeted financial support is another way to strengthen port competitiveness. If investments are deployed strategically to support alternative fuel infrastructure or the introduction of green port equipment, financial support can also accelerate decarbonisation efforts.
FEPORT calls for dedicated funding for ports and terminals
FEPORT regrets that the support proposed for the maritime sector fails to fully recognise the role of ports and terminals in supporting decarbonisation, the energy transition and industrial competitiveness.
The organisation argues that ETS allowances should also be allocated to the port sector, as ports are indirectly affected by the system due to their close connection with shipping and their increasing electrification needs.
“FEPORT therefore regrets that the support envisaged in the proposal to the maritime sector fails to recognise the role of ports and terminals in supporting decarbonisation, the energy transition and industrial competitiveness. Allowances should also be earmarked for the port sector, as it is indirectly affected by the ETS due to its connection to shipping and its increasing electrification rate,” concludes FEPORT Secretary General Lamia Kerdjoudj.
FEPORT and its members will continue their detailed analysis of the proposed measures and look forward to discussions with European policymakers.
