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Can the EU Shipping Industry Deliver on Climate Goals?

Maggie Johnson

By Maggie Johnson

December 8, 2024

Image Credit: “European container carriers increase charges worldwide-Container News,” available at Yahoo Images (12/08/2024).


The report by Transport & Environment (T&E) paints a stark picture of the European containership industry. It reveals that there has been no significant improvement in emissions per container compared to six years ago. Despite the industry's claims of increased efficiency, the slight decrease in emissions during 2023 is primarily due to reduced trade volumes, not substantial environmental progress. This urgent situation calls for immediate action.

The study commissioned by T&E highlights that fuel prices have a negligible influence on vessel speeds—a critical factor in operational efficiency. Historically, high oil prices have driven investments in more efficient vessel designs. However, these advancements have not resulted in slower sailing speeds or significant emissions reductions.

“There just aren’t enough incentives for ships to sail more efficiently,” says T&E’s shipping manager Jacob Armstrong. “The biggest improvements in efficiency come from sailing slower. Emissions could drop overnight if governments implement measures promoting real efficiency gains.”

The maritime sector is at the cusp of regulatory transformation. The European Union has expanded its Emissions Trading Scheme (ETS) to include maritime operations, introducing the first-ever carbon pricing mechanism for the shipping industry. The FuelEU Maritime initiative will soon enforce new regulations targeting a shift to lower-emission marine fuels.

FuelEU Maritime sets ambitious goals to reduce the greenhouse gas intensity of shipping fuels by 2% in 2025 and a staggering 80% by 2050. Greenhouse gas intensity measures the amount of greenhouse gases emitted per unit of energy or fuel used. The regulations will apply to all vessels calling at EU ports, regardless of their flag or nationality, addressing emissions from both voyages and berthing operations.

Key measures include mandating shore power supply in major EU ports by 2030 and providing incentives for adopting renewable fuels of non-biological origin. These policies are part of the broader Fit for 55 package, a comprehensive legislative framework designed to align the EU’s policies on climate, energy, land use, transportation, and taxation, aiming to achieve net-zero emissions by 2050.

While the industry has shown a willingness to adapt, the report underscores the need for stricter enforcement and stronger incentives to realize meaningful progress. However, it also highlights the potential for change. Enhanced regulation, combined with technological innovation and a commitment to slower sailing speeds, could transform the sector into a cleaner, more sustainable model of global trade. This potential for change should inspire hope for a greener future.


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