WSC calls for further improvements to shared responsibility in EU ETS

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Brussels, 23 June, 2022 – The World Shipping Council (WSC) acknowledges the important milestone that has been reached following the adoption of the European Parliament’s position on the EU ETS proposal. WSC calls on the EU institutions to work together in the trilogue process to ensure that EU ETS provides the correct market signals for decarbonising the shipping industry in support of the EU Green Deal GHG goals.

WSC recognises the commitment of the European Parliament to strengthen the EU’s climate ambitions through the reform of the EU ETS. However, the Parliament position on the responsible entity presents a loophole to shield shipowners with a mandatory contractual pass through of costs to operators, delaying innovation.

“Rapid investment in green vessels and fuels requires that EU ETS engage all parties – vessel operators, charterers, and shipowners. Legislation that is narrow and includes binding-pass through clauses will distort the market signal and delay progress to reduce greenhouse gas emissions,” says John Butler, President & CEO of WSC.

The payment of EU ETS compliance costs should be determined by the contracting parties themselves; negotiating the shared challenge of decarbonisation is best achieved without contractual terms imposed by legislation.

We urge the co-legislators in the upcoming trilogue process to remove the binding contract requirement. WSC stands ready to further engage with the EU institutions to ensure that the reform of the EU ETS is ambitious, effective and practical.

Contact 
Anna Larsson  
Communications Director 
Tel: +47 484 06 919 
Email: alarsson@worldshipping.org  

About World Shipping Council 
The World Shipping Council is the united voice of liner shipping, working with policymakers and industry groups to shape the future growth of a socially responsible, environmentally sustainable, safe, and secure shipping industry. We are a non-profit trade association with offices in Brussels, Singapore and Washington, D.C. Read more at www.worldshipping.org 

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Rapid investment in green vessels and fuels requires that EU ETS engage all parties – vessel operators, charterers, and shipowners. Legislation that is narrow and includes binding-pass through clauses will distort the market signal and delay progress to reduce greenhouse gas emissions.
John Butler, President & CEO of WSC