EU ETS to include calls at Tanger Med and East Port Said

EU ETS to include calls at Tanger Med and East Port Said

EU selects neighbouring transhipment hubs to be included in emissions charge

1 November 2023 (Lloyd's List) - THE European Commission agreed to include containership port calls at the Moroccan port of Tanger Med and Egypt’s Port Said East as part of its Emissions Trading System, as the bloc seeks to tackle evasive port calls ahead of the system’s implementation in two months, according to a press release.


The commission adopted a delegated act to identify Tanger Med and Port Said East as neighbouring container transhipment ports. This means that boxships sailing from a non-EU port to discharge cargo at an EU port via Tanger Med or East Port Said will still pay for 50% of emissions of this voyage despite calling at a non-EU port.


ETS legislation obliged the European Commission to announce a list of neighbouring container transhipment ports before its implementation commences in 2024, as the bloc aims to tackle evasive port calls that could result in higher emissions and lower ETS revenue.


A port that is located less than 300 nautical miles from an EU port can be identified as a neighbouring container transhipment port if transhipment of containers at that port exceeds 65% of its total container traffic.


This decision was submitted to the European parliament and council and it will be published in the official journal within two months unless the two bodies raise any objections.


EU bodies also adopted other rules to clarify implementation of shipping’s inclusion in the ETS, although these are pending adoption by the European Commission. These included an article that requires a single EU member state to be responsible for each shipping company for EU ETS purposes to reduce administrative burden.


According to EU’s clarifications, shipping companies must register with a single responsible administering authority and the list of these attributions will be published by the European Commission. After the publication of that list, shipping companies will open Maritime Operator Holding Accounts that will allow them to buy EU ETS allowances to comply with the regulation.


The EU will designate administering member states for shipping companies that have not registered with one by using port call data collected from the EU maritime information and exchange system called SafeSeaNet.


For vessels of a company that has not registered with a member state for EU ETS purposes, its first port at an EU port will designate its administering authority, meaning the member state under whose jurisdiction the vessel calls will become the administering authority.

Source: Lloyd's List