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August 17 2020

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32 The Journal of Commerce | August 17 2020 www.joc.com Green Shipping: The Route to Sustainability Special Report THE EUROPEAN PARLIAMENT will include shipping in the emissions trading system (ETS) that will require a 40 percent reduction in carbon diox- ide (CO2) emissions by 2030. The decision, which passed 62 to 3 with 13 abstentions in early July, makes it mandatory for shipping to monitor, verify, and report its emissions. Ships also must be emis- sions-free at berth by 2030. The move ends shipping's long-running campaign to remain outside the ETS and continue regulating itself through the Inter- national Maritime Organization's (IMO's) mandatory Data Collection System (DCS) on global fuel con- sumption. The DCS began on Jan. 1 and is intended to be the first step in a process to collect and analyze global emission data related to the shipping industry. In announcing the result of the vote, European Parliament members (MEPs) noted the IMO has made insufficient progress in aligning its emissions reporting obligations with those of the EU. In voting to include shipping in the ETS, MEPs also called on the European Commission to examine the environmental integ- rity of the measures decided upon by the IMO, including the targets under the Paris Agreement. Faïg Abbasov, shipping manager at European non-governmental research and climate campaign orga- nization Transport & Environment (T&E), welcomed the vote, which he said had delivered a wake-up call to the European Commission that "has focused too much on biofuels and hardly at all on making shipping pay for its pollution." Green Deal inclusion European Commission President Ursula von der Leyen unveiled the "Green Deal" in Brussels in Decem- ber 2019, a new climate policy to make the EU a net-zero carbon econ- omy by 2050 that included a proposal to bring shipping into the ETS. T&E said in a statement before the vote on ETS that the shipping sector emits about 13 percent of Europe's annual transport green- house gas emissions; the green group noted that Mediterranean Shipping Co. would be in seventh place in the ranking of EU carbon emitters if ship- ping were part of the ETS. Europe votes to include shipping in emissions trading system By Greg Knowler "[The EC] has focused too much on biofuels and hardly at all on making shipping pay for its pollution." That claim elicited a strong response from MSC, which said any analysis focusing on shipping emissions in the EU should only take into account emissions that actually occur in the geographical area of the EU, if it is going to be com-pared with other sources lim- ited to the same area. "This is particularly relevant for a global company such as MSC, which operates in all the world's major shipping lanes," the carrier said in a statement. "A complete analysis would show that only 40 to 45 percent of the emissions reported by MSC in the European Union Monitoring, Reporting and Verification (MRV) system were actually in the EU. In addition, a correct analysis would also show that MSC has achieved 2.5 percent year-over-year reduction in absolute emissions under the MRV scheme in a single year. Further, it is not a sound methodology to aggregate an entire fleet of hundreds of ships for the purpose of comparing that unfavorably to a single power plant point source." JOC email: greg.knowler@ihsmarkit.com twitter: @greg_knowler Shape up and ship out

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