EU ETS revision: European Shipowners call for permanent ETS derogations for islands, outermost regions and ice-classed ships

EU ETS revision: European Shipowners call for permanent ETS derogations for islands, outermost regions and ice-classed ships

Ahead of the upcoming revision of the EU Emissions Trading System (ETS), European Shipowners | ECSA call on the Commission to make the maritime derogations permanent beyond 2030 and to ensure they are fit for purpose.

Shipping carries around 76% of the EU's external trade and ensures connectivity to Europe's islands, outermost regions, and ice-bound regions.

To safeguard the competitiveness of European shipping and the connectivity of local economies, the derogations under the EU ETS should apply automatically, without depending on Member States' decisions to activate them, and apply permanently after 2030.

European Shipowners | ECSA recommend targeted improvements to make the derogations fit for purpose:

• Islands: the derogation should be extended to all EU islands, including those with more than 200,000 permanent residents and island states, for passengers and cargo. Connectivity and competitiveness should not depend on population thresholds.

• Ice-classed ships: higher emissions from ice-classed vessels are not a commercial choice. They reflect safety and navigational requirements in harsh winter conditions. The ETS derogation for ice-classed vessels should be made permanent and aligned with the equivalent provision under FuelEU Maritime, which covers sailing in ice conditions in addition to ice-classed ships.

• Outermost regions: the derogation should cover all voyages from, to and between the outermost regions and all EU Member States. This is crucial to ensure essential cargo and passenger connectivity to these regions, maintaining a level playing field and supporting territorial cohesion.

• Public service obligations: the derogation for transnational public service obligations should be maintained.

European Shipowners support maintaining the current geographical scope of the EU ETS for shipping. A stable geographical scope gives the sector the predictability it needs. Permanent and fit-for-purpose derogations complete this framework, ensuring it works for islands, outermost regions and ice-bound regions and trade routes.

Find our new position paper here.

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