EU agrees to “watershed” inclusion into the carbon market for shipping; eyes now on aviation
EU negotiators have agreed to bring shipping into the EU’s carbon market, the ETS, showing that pricing international emissions is possible. Shipping, (as well as aviation) is one of Europe’s largest CO2 emitters, but so far it has not been fully included in the Emissions Trading System. It means that shipping polluters will have to pay and shows that the EU can regulate emissions beyond its borders. There had been claims in the past that shipping and aviation could not be included, as much of their emissions take place outside the EU’s borders. T&E wants the same equally ambitious scheme for aviation, so it is fully in the ETS. Currently only flights within Europe are included, not those outside it, which make up about 60% of total European aviation CO2 emissions. EU negotiators will be discussing aviation emissions next week, and there is no reason for aviation to not be treated in the same manner as shipping.
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EU agrees to “watershed” carbon market for shipping, eyes now on aviation
30th November 2022
Transport & Environment (T&E)
EU negotiators agree to bring shipping into the ETS, showing that pricing international emissions is possible.
EU negotiators last night agreed to bring shipping into the EU’s carbon market (ETS) in a “watershed moment” for one of Europe’s heaviest emitters.The landmark deal will ensure shipping polluters pay and shows that the EU can regulate emissions beyond its borders, says T&E. The group calls on negotiators to do the same next week when they discuss an expansion of the ETS for aviation.
Jacob Armstrong, sustainable shipping officer at T&E, said: “The EU’s deal marks a watershed moment for shipping decarbonisation. No longer will shipping be let off the hook for its massive climate impact. No longer will international emissions be ignored by national policymakers. With this ambitious ETS covering all greenhouse gases[1], offshore vessels and ensuring funding for green shipping, the EU has thrown the gauntlet down to other jurisdictions like the US, China, and Japan to make this hugely important first step towards zero-emission shipping.”
The deal shows that Europe can price pollution beyond its borders, says T&E, which has set its sights on the aviation sector. Currently only flights within Europe are included in the ETS meaning 60% of emissions are exempted. Add to this a host of free allowances and airline polluters pay hardly anything. T&E has called on EU negotiators to apply an equally ambitious carbon market to the aviation industry when negotiators come together next week. “With shipping no longer off the hook, there are no excuses for the aviation sector,” concluded Jacob Armstrong.
Notes
[1]The inclusion of methane alongside CO2 and nitrous oxide in the ETS ensures that ships running on LNG are also required to pay for everything they emit. It is a clear signal that LNG is not a clean solution for shipping, says T&E.
See earlier:
EC draft shows EU to propose aviation fuel tax in efforts to cut European CO2 emissions
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The aviation industry’s carbon offsetting system (Corsia) risks being ineffective and poorly enforced. A report commissioned by the European Commission (EC) is highly critical of Corsia, which it says may do almost nothing to reduce international aviation emissions. The EC is expected to propose in June how aviation industry emissions should be mitigated, including whether to include international flights in the EU Emissions Trading Scheme (ETS) – currently only those within the European Economic Area are included. The ETS has its faults, but would be hugely more effective in cutting European aviation carbon. A key problem with Corsia, apart from it being voluntary, is the use of cheap, ineffective carbon credits. Currently the price of Corsia-eligible offsets is under $2.50 per tonne. The ETS price is up to $43. Many of the credits are dubious, with inadequate certification or quality control of offsets. The rationale of just allowing airlines to compensate for their emissions, rather than encourage reductions, is misguided. The report concludes that the most effective way to cut EU aviation carbon would be to use the ETS, not Corsia, and include all international flights. The UK is considering how to do its own ETS, including aviation.
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