Shipping’s CO2 emissions are to be included in the European Union’s Emissions Trading System (ETS) as the EU proposes a binding target in line with the IMO’s ambition to cut levels by 40% by 2030.

A proposal was approved Tuesday in a meeting of the parliament’s Environment Public Health and Food Safety Committee to revise the EU system for monitoring, reporting and verifying CO2 emissions from maritime transport. Sixty-two voted in favour, three against and there were 3 abstentions, the EU said.

Welcoming the proposal, the committee said it wants to see “more ambition” and voted to include ships of 5000 gross tons and above in the ETS — the first and still the largest greenhouse gas emissions trading scheme in the world.

In addition, parliament members said market-based emissions reduction policies are “not enough” and introduced binding requirements for shipping companies to reduce their annual average CO2 emissions per transport work, for all their ships, by at least 40% by 2030.

This is in line with the IMO’s own target. Members of the European Parliament said that while alignment is important they believe there is “insufficient progress in the IMO”.

They asked the Commission to examine the overall environmental integrity of the measures decided upon by the IMO, including the targets under the Paris Agreement. “A global ambitious agreement on GHG emissions from shipping is urgently needed,” the EU said.

Leading negotiator Jutta Paulus said: "Today, we are sending a strong signal in line with the European Green Deal and the climate emergency”

Paulus continued: “Monitoring and reporting CO2 emissions is important, but statistics alone do not save a single gram of greenhouse gas! That’s why we are going further than the Commission proposal and demanding tougher measures to reduce emissions from maritime shipping.”

The committee also called for the setting up of an “Ocean Fund” to function during the 2023 to 2030 period.

It said this will be financed by revenues from auctioning allowances under the ETS.

The fund’s cash would be used to improve the energy efficiency of vessels and to support investment in innovative technologies and infrastructure, such as alternative fuel and green ports in an effort to decarbonise the maritime transport sector.

It added that 20% of the fund’s revenues will be used to contribute to protecting, restoring and efficiently managing marine ecosystems impacted by global warming. The committee’s proposal is due to be adopted during a plenary session scheduled for the 14-17 September in Strasbourg.

When adopted parliament will be ready to start negotiations with member states on the final shape of the legislation, the EU said.

Maritime transport remains the only sector with no specific EU commitments to reduce greenhouse gas emissions.