Spain promotes in the EU “rethinking” the rate for emitting CO2 to ships that arrive at its ports to avoid diversion to other countries
Spain is promoting in the EU “rethink” the tax What companies pay shipping companies that arrive at their ports by be able to emit CO2, to prevent them from choosing heading to ports in third countries, from North Africa or the United Kingdom, and the activity of places like the Spanish ones, which as Las Palmas or Algeciras They are currently experiencing a growth in their activity due to the diversion of traffic that previously passed through the turbulent Red Sea.
Following the European elections, which have confirmed a high degree of discontent among citizens that has increased the weight of ultra and Eurosceptic parties, Spain has raised the debate through the declaration it presented at the Transport Council held this Tuesday in Luxembourg. , which has sparked a debate among ministers in which the “risk” that European ports lose competitiveness with the consequent job loss but also the need for the commitment to decarbonization of the maritime sector through emission reduction systems is global, in the International Maritime Organization (IMO). The European Commissionwhich has the last word to propose a modification in the rules, has considered that it is still “too soon” but that it will take into account the request and the other countries in the report that it will present at the end of this year.
Upon arrival at the meeting, the Minister of Transport and Sustainable Mobility, Oscar Puenteexplained that, for the moment, it is about “drawing the attention” of the EU to the disadvantage that the application of the emissions trading system to the maritime sector can cause in European ports with respect to other nearby ones but outside the EU, in which a system that forces shipping companies to attend certain CO2 emission rights auctions and make an outlay that you don’t have to make if you decide to dock just a few kilometers south of the Mediterranean or in the North Sea. At the moment, Spain has already gathered the signature of 10 of the 27 countries of the EU, including Poland, a country with ports in Northern Europe that has been the last to join, which in Puente’s eyes shows that the potential loss of market in favor of countries that do not limit greenhouse gas emissions greenhouse.
However, not all coastal countries have joined. Sweden recalled that the regulations on the emissions trading regime in the maritime sector also establish obligations for non-European ports up to 300 miles from the EU, precisely to avoid the carbon leaks to which Puente has alluded. “We do not believe that we have to reopen the debate again without having clear evidence that they are diverting” ships, said its Transport Minister. Denmark has asked for “time” to see how the emissions trading system works in the maritime sector that began to be applied this year. Also the European Commission believes that “it is too early to reach conclusions about its impact on the maritime system”, he recalled that governments can use the income from the purchase of emission rights to decarbonize this sector and the ports and, although he has stated that he will take into account the request of Spain and the other countries, there will be nothing at least until the report that will be published at the end of this year.
Aside from these positions, Spain defends “rethinking” the figure of the emissions trading regime to tax not so much the ship as its contentsoo where does it come from and what route has done and he payment for emitting CO2 that you have done along the way instead of just arriving at a European port, which means that shipowners can choose to go to another port outside the EU. Puente has defended this evaluation before the rest of the European Transport Ministers just a week after the Government approved the bill to transpose the latest European directives on the CO2 emissions right trading regime, to incorporate the building and fuel sectors for road traffic. In a previous review, maritime traffic was also included, which since the beginning of this year has taxed – with the need to go to an emissions auction – ships from 5,000 tons -next year it will be expanded to those of 400 tons and above- with the obligation to pay for 50% of the emissions between an EU and non-EU port and for 100% of the emissions between two ports of the EU and by ships docked in EU ports. Until 2026, only CO2 emissions will be recorded and will be expanded to include methane and nitrous oxide from then on.
These laws are promoted by the third vice president, Teresa Ribera, and sources from the Ministry of Transport assure that the request to “rethink” the rate on CO2 emissions by ships does not represent a discrepancy with the Ecological Transition. “I do not question the need to tax these emissions, but I do question the need to rethink the model to avoid carbon leaks to other countries,” said Puente.
Detour to Africa or the United Kingdom
As he explained upon his arrival at the EU Transport Council, there is “the possibility that ports, especially in southern Europe but also in northern traffic is diverted to North Africawhere this carbon emission fee is not being charged.” The damage would also occur for Spanish ports, at a time when some of them, from the south and the Canary Islands, They are experiencing an increase in activity due to the drop in traffic in the Red Sea. “Right now it’s a moment of great sudden growthsome ports in the south of Spain have an increase of between 30 and 40% and in the Canary Islands, in Las Palmas, there is a huge increase due to the diversion of traffic that passes through the Red Sea.”
What the Government wants to avoid is precisely a diversion of ships that, in this case, would not benefit but harm European and Spanish ports, by shipping companies seeking to avoid having to pay the “tax” What becomes the obligation in the EU to buy rights to emit CO2 to dock in its ports. This phenomenon is known as “carbon leak“which leads to maritime traffic going to other countries, subtracting activity from European ports without, in addition, avoiding the emission of greenhouse gases, which are released into the atmosphere from other places, but in that case the Shipowners have to pay for it. They will also have no incentive to reduce emissions.
According to Puente, this phenomenon can also be a path of no return. “The problem is that the ship that is located in another port [fuera de la UE] “It’s very likely that we won’t get it back.”. “We cannot wait for this to happen, we have to anticipate to see what investments are taking place in Africa and the United Kingdom to avoid this transfer of traffic,” she said.
At the moment, the Spanish Government does not propose any specific measure nor does it ask for allowing more CO2 emissions from ships that dock in European ports or ending the auction system, the income from which Member States have to invest in climate policies. Yes, it claims that monitor “closely” what is happening with maritime traffic, to what extent it is being diverted, so that the EU is able to “to anticipate” and “rethink” the “tax design” for emitting CO2 in the maritime sector.
“Monitoring consists of having a detailed analysis of data from ports where this coal leak may occur and see which ports can potentially win it“said the minister, who has also claimed that the EU emissions trading scheme in the maritime sector extends to “all ports in the world.”
