This article takes issue with the Emissions Trading System (ETS) put in place by the EU. Pricing the emissions of various fuels into the equation will induce fuel users to use cleaner fuels in some cases. The argument goes that such process, based on greenhouse gas (GHG) emissions from the fuel, will be compromised by the lack of availability of cleaner fuels until sufficient supplies are readily available. And the process considers only greenhouse gases and not the lifecycle costs of certain fuels.
Perhaps the pricing scheme can be adjusted. Certainly there will be more investment in cleaner fuel capabilities. But the issues brought up are real. Just how significant they are is yet to be seen.
One real issue, however, is the fact that maritime operators can avoid fueling at EU ports and places where the ETS price is added. They can choose routes where dirty fuels can be burned, and minimize their time sailing where ETS is enforced. One way to reduce this is to create green corridors, where use of clean fuel is mandatory. An example is the Singapore to Rotterdam corridor backed by those governments.
Added 9/30/2022: Other green corridors are being planned. Here is one between Hamburg and Halifax.
By Jim Corbett | World Shipping Council Sep 20, 2022How to better deliver carbon reductions in EU’s maritime sector – EURACTIV.com