The European Parliament has voted strongly in favour of including shipping in the European Union Emission Trading System (EU ETS).
The inclusion of shipping is part of an overall reform of the EU ETS that was launched under the Fit for 55 decarbonisation legislative package.
According to a European Parliament statement, 500 MEPs voted in favour of including shipping in EU emissions trading, with only 111 voting against.
The European Parliament also voted to include aviation.
The texts now will have to be formally endorsed by the EU Council. They will then be published in the EU Official Journal and enter into force 20 days later.
An outline of shipping’s inclusion in EU emissions trading has already been drawn up.
The scheme will be phased in from 2024.
The deal obliges shipowners and operators in 2025 to buy rights for 40% of verified emissions reported in the previous year. In 2026, the percentage rises to 70% and from 2027, all emissions will be covered.
A minimum of €1.5bn ($1.57bn) of the revenue generated by including the industry in EU emissions trading will be invested in decarbonisation research and energy efficiency improvements for ships.
Shipowners will also be able to pass on costs to commercial operators and charterers when they are responsible for operational decisions that affect vessels’ greenhouse gas emissions.
The EU ETS will also be changed if the International Maritime Organization agrees its own market-based measure to incentivise the transition to zero emission shipping.
Under Fit for 55 the EU plans to reduce greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.
