Brussels vows to shield shipowners from double carbon charges

Speaking at the opening ceremony of the world’s most famous shipping event, Tzitzikostas sought to reassure shipowners that Brussels is aware of growing concerns over the cost of decarbonisation and intends to avoid overlapping carbon charges as the IMO develops its global emissions framework.      “I want to be clear: European companies will not pay twice, both in Europe and in the IMO,” Tzitzikostas said.      The pledge was one of the strongest signals yet from the European Commission as the industry awaits details on how the EU’s Emissions Trading System (ETS) will interact with the IMO’s emerging Net Zero Framework.      Tzitzikostas said revenues generated from shipping through the ETS should be channelled back into the sector to support the transition to cleaner operations.      He said funds raised from shipping emissions should be used to finance clean fuels, new propulsion systems, and future technologies rather than serving as a general source of government revenue.      The commissioner used his Posidonia address to position shipping at the centre of Europe’s industrial and economic strategy.

According to European Commission figures, shipping carries 76% of the European Union’s imports and 73% of its exports, while maritime imports alone are worth around €1.3trn ($1.51trn) annually.      “Without ships and without ports, there is no competitive Europe,” he said.      Tzitzikostas pointed to two recently unveiled EU initiatives – the European Industrial Maritime Strategy and the European Ports Strategy – as evidence of Brussels’ intention to strengthen the region’s maritime competitiveness while navigating the energy transition.

The plans include support for fleet renewal, port infrastructure development, alternative fuels, shore power, digitalisation, and cybersecurity.

The commissioner also moved to reassure European shipowners about the future of the continent’s tonnage tax regimes, describing national support frameworks as a key tool for maintaining the attractiveness of European ship registers.      In another message likely to be welcomed by shipowners, he said the Commission is working to simplify reporting requirements under both ETS and FuelEU Maritime while reducing unnecessary bureaucracy.      “Competitiveness also means fewer unnecessary burdens,” he said.      Tzitzikostas also warned about Europe’s growing dependence on non-European maritime finance providers.

He noted that an increasing number of shipping companies are turning to leasing houses and financial institutions outside the EU to fund new vessels.      “If the ownership of ships acquired through leasing remains outside Europe and is linked to domestic content requirements for their construction, a new strategic risk is created for the European Union,” he said.      The commissioner argued that Europe must retain influence over critical maritime value chains, financing, and investment if it wants to remain a global shipping power.      On decarbonisation, Tzitzikostas reiterated the EU’s support for ongoing IMO negotiations to implement the organisation’s 2023 greenhouse gas strategy.      He said the European Union’s new negotiating mandate seeks practical solutions that can attract broad international support, following recent IMO discussions that fell short of a final agreement.      “Decarbonisation is a global challenge and a global responsibility,” he said.      At the same time, he acknowledged that regulation alone will not deliver the transition.      Success, he said, will depend on closer cooperation among shipowners, ports, fuel suppliers, industry, and governments to align investment, infrastructure, and fuel availability.      His remarks come as shipping enters one of the most complex periods in its history, balancing geopolitical disruption, tightening environmental regulation, and the search for commercially viable zero-carbon fuels.      For European shipowners gathered in Athens this week, however, the headline message was clear: Brussels wants shipping to decarbonise, but it does not want European operators carrying a carbon cost burden that their international rivals avoid.