negotiations between the European Parliament, the European Council and the European Commission have been deadlocked for several months, the three executive agencies finally reached an agreement on how to implement the emissions trading system (ETS) on November 29. The next meeting on ETS is scheduled to be held from December 16 to 17, and negotiators will try to reach a comprehensive agreement on ETS revision.
ETS is part of the "Fit for 55" proposal, which aims to realize the ambition of Europe's green agreement climate law. The goal is to reduce the continent's net greenhouse gas emissions by 55% from the 1990 level by 2030 and make Europe climate neutral by 2050. Shipping accounts for 13% of Europe's total greenhouse gas emissions.
On December 11, 2019, the European Commission announced the "European Green Agreement" to address climate change and promote sustainable development. It is proposed that by 2050, Europe will become the world's first "carbon neutral" region, that is, net carbon dioxide emissions will be reduced to zero. To that end, the EU has developed a detailed road map and policy framework. On September 16, 2020, the European Parliament voted to include greenhouse gas emissions from international shipping into the EU Carbon Emissions Trading System (EU-ETS) starting from 2022.
the EU's EU-ETS system is the world's first and largest GHG emissions trading system, including all EU member states as well as Iceland, Norway and Richton. Up to now, it has become the pillar of EU energy efficiency policy. EU-ETS is a total transaction. Under the premise of setting the total amount of pollutant emissions, participating enterprises obtain a certain emission quota. Enterprises that obtain emission quotas can transfer emissions to each other through currency exchange to achieve the purpose of reducing emissions and protecting the environment. If an enterprise can make its actual emissions less than the allocated emission quota, it can put the remaining emission rights on the emission market for auction and make a profit; otherwise, it must buy the emission quota on the market, otherwise it will be subject to heavy penalties.
"shipping decarburization is not a matter of can or can, but how to realize the problem for maritime leave ETS income is the industry decarburization of the victory through innovation fund of the special support is to bridge the clean fuel price gap, in order to improve ship energy efficiency, promote innovation and construction of the port infrastructure of the key," european community shipowners' association (ECSA) note by the secretary-general Sotiris Raptis said
Under the "cap and trade" principle, ship operators will be required to purchase and abandon ETS emission quotas, or EU quotas, for each ton of carbon dioxide (CO2) emissions reported within the system, and penalties for violations.
, if approved by EU member states, this week's agreement will give the shipping industry a phased implementation period of three years, in which the carbon price per ton of carbon dioxide will gradually increase from 40% in 2024 to 70% in 2025 and 100 in 2026.
"the inclusion of all greenhouse gases-carbon dioxide, methane and nitrous oxide-in the EU emissions trading system is an important step," Corbett said in the statement. "But only when the EU emissions trading system adopts a full life cycle perspective can it realize its real potential and improve the competitiveness of truly renewable fuels. The right price signal is the key to promoting the green energy investment needed to produce sustainable fuels.
Forwardernet.com