{"id":21572,"date":"2021-07-20T10:13:48","date_gmt":"2021-07-20T15:13:48","guid":{"rendered":"http:\/\/blogs.edf.org\/climate411\/?p=21572"},"modified":"2021-07-20T15:25:59","modified_gmt":"2021-07-20T20:25:59","slug":"the-eu-has-the-power-to-bring-transformational-change-to-global-shipping","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2021\/07\/20\/the-eu-has-the-power-to-bring-transformational-change-to-global-shipping\/","title":{"rendered":"The EU has the power to bring transformational change to global shipping"},"content":{"rendered":"<figure id=\"attachment_21575\" aria-describedby=\"caption-attachment-21575\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-scaled.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-21575\" src=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-1024x683.jpg\" alt=\"\" width=\"540\" height=\"360\" srcset=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-1024x683.jpg 1024w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-300x200.jpg 300w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-768x512.jpg 768w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-1536x1024.jpg 1536w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/2021\/07\/30725814_l-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><figcaption id=\"caption-attachment-21575\" class=\"wp-caption-text\">Container cargo freight ship with working crane loading bridge in shipyard at dusk.<\/figcaption><\/figure>\n<p><em>This post was written by Panos Spiliotis, Global Climate Shipping Manager for EDF, and also <a href=\"https:\/\/www.edfeurope.org\/news\/2021\/20\/07\/eu-has-power-bring-transformational-change-global-shipping\">appears on EDF Europe<\/a>.<\/em><\/p>\n<p>The European Commission\u2019s \u201cFit for 55\u201d policy package opens a powerful new opportunity to decarbonise shipping\u2014a sector with a growing share of global emissions (roughly 3%) that is not covered by any EU climate target.<\/p>\n<p><a href=\"https:\/\/www.edf.org\/media\/fit-55-turns-eus-climate-target-action-challenging-other-major-economies-follow\">Released last week<\/a>, the \u2018Fit for 55\u2019 package is the most robust policy proposal package set out by any of the world\u2019s economies to date and signals to the international community that the EU is focused on its new target to reduce emissions by 55% by 2030. The Commission\u2019s proposal to include international maritime transport in the EU Emissions Trading System can carry shipping a long way to a zero-carbon future; however, the policy suite fails in other ways to steer shipping entirely away from fossil fuels. Instead of kicking the can down the road, Brussels should chart a course that steers the sector away from liquefied natural gas (LNG) and toward cleaner options.<\/p>\n<p><strong>EU must stop favouring LNG<\/strong><br \/>\nOne key feature of the package, \u201cRefuel EU,\u201d mandates a progressive decrease in the carbon content of marine fuels. Unfortunately, the European Commission has put forward targets that will boost the use of LNG and biofuels in shipping\u2014a pointless half-measure that will not lead to real transformative action. It is a sorely missed opportunity. If appropriately designed, the Refuel EU fuel standard could incentivize zero-carbon fuels.<\/p>\n<p><!--more--><\/p>\n<p>Furthermore, the Alternative Fuels Infrastructure Directive (AFID), sets targets for LNG infrastructure in Europe\u2019s core ports that are counter-productive\u2014LNG is a fossil fuel and the associated methane leakage undermines any significant climate impact. The Commission should have taken this opportunity to turn the page on their earlier mistake by setting out a target for zero-carbon bunkering infrastructure this decade in Europe\u2019s TEN-T core ports.<\/p>\n<p><strong>Carbon pricing, and beyond<\/strong><br \/>\nThe EU has a time limited opportunity to transform the shipping industry: under pressure from their own customers, shipping companies are shifting their strategies from resisting change to leveraging it with carbon pricing. The \u201cGetting to Zero\u201d industry coalition wants zero-emission vessels to be commercially viable by 2030. Green hydrogen and ammonia e-fuels\u2014which may take the lion\u2019s share of international shipping fuel burn by 2050\u2014will also play a key role in decarbonizing global shipping as long as smart policy incentivizes uptake and minimises hydrogen leakage to maximize the climate benefits of green hydrogen based fuels.<\/p>\n<p>The Commission\u2019s proposal to include shipping emissions for the first time in the EU ETS\u2014with an impressive scope covering intra-EU journeys and 50% of incoming and outgoing\u2014begins to make headway in the formidable task of getting to zero-carbon shipping. Although the scope is ambitious, a gradual phase-in mechanism over four years means it would only really reach its full potential by 2026.<\/p>\n<p>In the absence of measures beyond the EU ETS to incentivize zero carbon fuels, LNG and biofuels will become cost-competitive before green e-fuels. Almost a fifth of all new vessel orders are currently for fossil gas LNG vessels. The EU should take this moment to avoid locking the industry into an inferior fuel like LNG that can, at best, only deliver 20% emissions reductions.<\/p>\n<p>Bringing international shipping into the EU ETS is a measure of success for the package, but it\u2019s a shame that the European Commission did not fully embrace the moment to move the industry away from polluting fossil fuels. After all, we know that EU action can catalyze an international response and the International Maritime Organization\u2019s delegations are watching closely to see how hard the EU is willing to fight for zero-carbon shipping.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post was written by Panos Spiliotis, Global Climate Shipping Manager for EDF, and also appears on EDF Europe. The European Commission\u2019s \u201cFit for 55\u201d policy package opens a powerful new opportunity to decarbonise shipping\u2014a sector with a growing share of global emissions (roughly 3%) that is not covered by any EU climate target. Released &#8230;<\/p>\n","protected":false},"author":148093,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71676,202,109,107927,46599],"tags":[],"coauthors":[],"class_list":["post-21572","post","type-post","status-publish","format-standard","hentry","category-carbon-markets","category-greenhouse-gas-emissions","category-international","category-shipping","category-united-nations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The EU has the power to bring transformational change to global shipping - Climate 411<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/climate411\/2021\/07\/20\/the-eu-has-the-power-to-bring-transformational-change-to-global-shipping\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The EU has the power to bring transformational change to global shipping - Climate 411\" \/>\n<meta property=\"og:description\" content=\"This post was written by Panos Spiliotis, Global Climate Shipping Manager for EDF, and also appears on EDF Europe. The European Commission\u2019s \u201cFit for 55\u201d policy package opens a powerful new opportunity to decarbonise shipping\u2014a sector with a growing share of global emissions (roughly 3%) that is not covered by any EU climate target. 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