No agreement yet on EU Emissions Trading System

The European Parliament and the EU Member States have failed to reach an agreement regarding the EU’s Emissions Trading System (EU ETS) for the period 2021-2030, despite lengthy negotiations.

Danish Conservative Party Member of Parliament Bendt Bendtsen said that European shipping was therefore still at risk of being subject to unilateral EU regulation. Bendtsen has called on the European Parliament to abandon its special requirements and instead to support the work of the IMO, leading to a global standard.

The issue of the inclusion, or not, of shipping has been a contentious issue. The purpose of EU ETS is to reduce emissions in energy production and in industry, but shipping has so far not been part of that scheme.

Bendtsen has been the lead campaigner in the European Parliament for keeping shipping as a global business that is regulated globally. Any EU-specific regulation would be regionally confined, which Bendtsen has said was out of touch with reality, because ships sail all over the world.

“Of course, it is disappointing that an agreement on a new CO2 emissions trading system has not been reached, because it is really necessary that the quota price rises. At the same time, the lack of consensus in the EU puts the shipping sector in a difficult situation. Especially now where the IMO has launched a global strategy for the sector’s emissions,” Bendtsen said.

A new round of negotiations between the European Parliament and the Council is provisionally set for the second week of November.