From SCDigest's On-Target e-Magazine
- Oct. 4, 2012 -
Global Supply Chain News: European Union Says it Is Considering Carbon Tax on Container and Bulk Ships Into and Out of Ports
Move Would Mirror Controversial Approach for Airlines; Tax Would Likely be On Full Voyage Distance
SCDigest Editorial Staff
There has been a lot of controversy over the announcement last year by European Union authorities that would begin taxing foreign airlines based on CO2 emissions flying into and out of the EU.
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Would the carbon tax again be based on the full length of the voyage? It would seem likely so, as the distance travelled in Euro controlled waters would be a tiny fraction of the full trip from say the US or Asia into Euro ports.
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What Do You Say?
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China, for example, has threatened to cancel orders from Europe's Airbus, and a bill just passed in the US Senate on a unanimous vote would prohibit US airlines from paying the tax, among other actions. The controversy is in part that the airlines are required to pay the tax based on the entire length of the flight, not just the time over European airspace.
Now, the EU is looking to take the same type of actions against ocean container and bulk ships moving into and out of European ports.
On Monday, the European Commission issued a statement saying they were moving forward with an effort to reduce greenhouse gas emissions from international shipping because the industry was not moving fast enough on changes.
"Shipping is a global industry and needs global solutions to address its environmental footprint. As a result, we are all working towards an internationally agreed global solution to decrease greenhouse gas emissions from ships," said European Commissioner Siim Kallas and EU Commissioner for Climate Action Connie Hedegaard in a joint statement.
The statement continued that "Discussions about further global measures are on-going at IMO [International Maritime Association] level, but we need intermediary steps to quickly deliver emissions reductions, such as energy efficiency measures also for existing ships."
The EU Commission also said it is considering possible action in 2012 in regards to including shipping emissions into the EU's greenhouse gas emission reduction commitment.
The statement further said that "At EU level, we consider several options, including market-based mechanisms. A simple, robust and globally-feasible approach towards setting a system for monitoring, reporting and verification of emissions based on fuel consumption is the necessary starting point."
The statement further said that "It's therefore our joint intention to pursue such a monitoring, reporting and verification system in early 2013. At the same time, we will continue the debate with stakeholders on which measure can successfully address the EU's greenhouse gas reduction objectives."
The new plan is, as noted above, is supposed to be ready by early next year.
The EU has previously suggested it might tax carriers for the emissions produced by their vessels, similar to what is being tried with airlines. It has also said in the past that it will establish its own regulations on shipping emission if the IMO fails to act.
Would the carbon tax again be based on the full length of the voyage? It would seem likely so, as the distance travelled in Euro controlled waters would be a tiny fraction of the full trip from say the US or Asia into Euro ports.
There US has already seen some opposition to the concept.
(Global Supply Chain Article Continued Below)
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