Fri 23 Oct 2009, 10:25 GMT

EU confirms support for market-based instruments


EU Council says it is in favour of the use of global market-based instruments to cut emissions.



The Council of the European Union has stated that it is in favour of the implementation of worldwide market-based instruments to reduce emissions from the maritime and aviation sectors.

In a document entitled "Council Conclusions on EU position for the Copenhagen Climate Conference (7-18 December 2009)", referred to in an earlier article published by Bunker Index today, the EU Council says "The EU supports the use of global market-based instruments to reduce emissions from these sectors and that such instruments should be developed within ICAO and IMO, respectively."

The conclusions made by the EU Council in the document will be presented at the Copenhagen climate change meeting in December as a basis for negotiating a global agreement.

The EU document follows a recent study commissioned by the International Maritime Organization (IMO) on greenhouse gas emissions (GHGs) from ships, which concluded that a global maritime emissions trading scheme would be the most effective in addressing the GHG issue.

Last month Bunker Index reported that shipping industry associations from five countries had launched a discussion paper which argues that a global trading scheme would be the most effective method of reducing carbon emissions in the shipping sector.

National ship industry associations of Australia, Belgium, Norway, Sweden and the UK jointly launched the paper on 23rd September.

Under a cap and trade scheme individual companies or countries would face a carbon limit. If they exceed their limit, they would be able to purchase allowances from other polluters that remain below their cap.

A cap and trade scheme may be seen as more politically acceptable than a carbon tax and could potentially be set up as an extension of the existing European Union Emission Trading Scheme (EU ETS) to also cover the international shipping sector.

Under the EU ETS, large emitters of carbon dioxide within the EU must monitor and annually report their CO2 emissions, and they are obliged every year to return an amount of emission allowances to the government that is equivalent to their CO2 emissions in that year.

A recent report by the European Commission calculated that both the shipping and aviation sectors combined could generate revenues as high as 25 billion euros ($36.7 billion) a year in 2020, if their emissions were capped at 30 percent below 2005 levels.


Andreas Enger, Höegh Autoliners. Höegh orders six LNG-fuelled Aurora-class vessels with future-fuel provisions  

9,100-CEU ships equipped with ammonia- and methanol-ready notation and designed to operate on LNG and low-sulphur fuel oil.

Puerto Rico flag. Puma Energy confirms bunkering operations in Puerto Rico  

The development has been known to regional industry players for several weeks.

Singapore waterfront skyline. Koch Minerals & Trading seeks bunker procurement intern in Singapore  

Successful applicant to work under the mentorship of KM&T’s senior bunker procurement coordinator.

Dan-Bunkering logo. Dan-Bunkering relocates Middelfart headquarters to Kabelbyen  

Bunker firm moves to office complex connected to parent company USTC.

Maria Topic vessel. OceanWings and Tsuneishi Shipbuilding complete rigid wingsail retrofit on bulk carrier Maria Topic  

Ultramax bulk carrier returns to commercial service fitted with a rigid, tiltable wingsail system.

Dubai Marina skyline. XPower Trading seeks senior bunker trader for 'newly established' Dubai role  

Position requires at least five years' bunker trading experience.

Flag of Brazil. Petrobras resumes VLSFO sales at Itaqui as MGO supply disruption continues  

MGO pipeline work at Brazil’s Port of Itaqui remains on track through 9 November.

Ammonia Energy Association (AEA) logo. AEA qualifies global roster of auditors for ammonia certification system  

Bureau Veritas, DNV, TÜV SÜD and three others cleared to verify low-emission ammonia credentials.

New York city skyline. IBIA early-bird registration deadline approaches for New York convention  

Discounted rates available for members and non-members up until the end of August.

MARAD and Core Power MOC signing. MARAD and Core Power sign cooperation framework to advance nuclear-powered merchant ships  

Agreement targets first construction from 2028 as China accelerates its own nuclear shipping ambitions.