The Union of Greek Shipowners (UGS) became on Friday the second major Greek owners’ club to come out in favour of European Union (EU) moves to increase charterers’ liability for emission costs.
Draft legislation currently under discussion at the European Parliament (EP) “addresses the shipping industry’s concerns to a significant extent, primarily by recognising the commercial operators’ structural role in shipping and for its decarbonisation, in line with the ‘polluter-pays’ principle,” the Union of Greek Shipowners (UGS) said in a statement.
The UGS announcement comes a few days after similar statements by Harry Fafalios, chairman of the London-based Greek Shipping Cooperation Committee (GSCC).
Tanker lobby Intertanko has also hailed the EP’s initiative.
The World Shipping Council (WSC), by contrast, a lobby group representing major carrier companies like AP Moeller Maersk, has voiced opposition to the proposal by EP rapporteur Peter Liese.
If enacted, Liese’s amendments would allow for legally binding agreements between owners and charterers to sort out the cost of carbon allowances incurred under the EU’s emission trading scheme (EU ETS), which kicks in next year.
In a direct rebuttal to the WSC, Greek shipowners called the “mega carriers’” position as “unfortunate”.
It’s hard to comprehend the WSC position, the UGS said, given that to the extent that liner companies are commercial operators at all, they can easily pass on any allowance costs to their customers, said the UGS explained.
EU ETS legislation will be finalised later this year after negotiations between the EP and EU member state governments.
Picking their battles
The UGS also welcomed another proposal by Liese to earmark 75% of revenues from EU ETS allowances for a maritime research fund into zero-carbon shipping fuels.
Backed by the UGS, the government of Greece — an EU member and the world’s biggest single shipowning nation — has already come out in favour of such a fund.
Without more research into zero-carbon fuels, the EU shouldn’t be rushing to impose emission reduction targets on shipping as part of the bloc’s “Fit for 55” carbon-reduction plan, Greek prime minister Kyriakos Mitsotakis has said.
The UGS remained silent on Friday on another key proposal by Liese — to widen the EU ETS scope to cover all shipping emissions, up from currently half, if the International Maritime Organisation (IMO) fails to act on worldwide carbon pricing measures.
The UGS announcement is likely one of the last issued under stewardship of its current president Theodore Veniamis, who is widely expected to not seek a further term when the organisation elects new leadership early next month.
According to sources in Athens, UGS stalwarts Melina Travlos of Neptune Lines and George Angelopoulos of Arcadia Shipmanagement are in the race to succeed Veniamis.
