The EU has launched a consultation in an attempt to map out market-based solutions for GHG emission reduction within the shipping sector.

 

As it looks to push forward on market-based measures for the industry, the EU appears to be willing to tackle challenges from the shipping industry and governments surrounding the inclusion of shipping within the EU ETS and other marked-based measures for GHG emission reduction.

The document, published last week, considers a number of options for curbing emissions including the inclusion of shipping in the EU ETS, direct fuel or emission taxation, mandatory emission caps and the establishment of a "compensation fund"; with industry input based upon emission outputs.

A mechanism that would cover ships' emissions from their departure port to any EU port, and then on to the next port of call is being hailed as a system that could induce shipping into the ETS. According to a EU source there is "no preferred option," however, the EU has historically made noise about taking shipping into the EU ETS and such mechanism could instigate this.

Current discussions regarding the need for any new green policy to be global rather than solely EU-based are said to mirror the previous row over the EU's successful inclusion of airlines in the ETS for the first time, despite legal and political efforts to overturn the EU's decision.

The consultation is open for submissions until April 12, 2012.

 

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