+ 2.7° C by 2100… and COP 26
Social medias, particularly Twitter, really show the best and most shameful or shocking human reactions and behaviors… Some days ago, comments regarding the tragic perspective of an increase of temperature up to 2.7° C by 2100 ranged from official calls for awareness, strong mobilization of citizens and NGOs’, to appalling denial and trivialization by the usual climate change skeptics. What however was disappointing, was to read that some world leaders were just expressing their discontent instead of committing to use their power and leadership to take strong measures and to convince each other to act… Let us see what will happen in Glasgow during the upcoming COP 26…
Youth as well as future generations will hold accountable leaders who had the capacity to act but preferred to “wait and see”. They will also be entitled to be very severe towards the most polluting industries which did not take serious measures to reduce their emissions. We need more than words and promises.
In 2018, the International Maritime Organization (IMO) set an ambition for shipping to reduce its GHG emissions by at least 50 percent by 2050 as compared to 2008. This was an important first step, but when we are told that we can expect an increase +2.7 ° C by 2100, it is not anymore very decent to take our time…
It is important to set a clear target for the shipping industry to be run entirely on net-zero energy sources by 2050 as promoted by the supporters of the Getting to Zero Coalition.
Deploying commercially viable zero emission vessels by 2030 operating on deep-sea trade routes, supported by the necessary infrastructure for scalable zero emission fuels and energy sources should become the priority.
Signatories of the Call to Action for Shipping Decarbonization plead for at least five percent zero emission fuels in international shipping by 2030. This will be possible if all parties of the maritime and port ecosystem cooperate and if governments mobilize to support zero emission technologies.
The role of regulators and more particularly EU regulators in the framework of the adoption of the “Fit for 55” package and Taxonomy rules will also be crucial. This is the only way for the EU to confirm its leadership on shipping decarbonization.
Clarity around sustainability criteria, consistency between the different “Fit for 55” proposals as well as good assessment of the risks associated with investing in zero emission vessels, infrastructure, and fuel production must remain “on top of the agenda” topics for EU co-legislators.
The FuelEU Maritime Regulation for instance imposes requirements on ships to connect to OPS by 2030 and the AFI Regulation contains targets for infrastructure deployment in TEN-T core and comprehensive maritime ports by 2025.
It is therefore welcome that the ETD revision proposal (article 15.5) allows for total or partial exemptions for electricity provided to vessels at berth. This could encourage vessel operators to increase the uptake of OPS already before it becomes mandatory by 2030.
A mandatory total exemption across all Member States, however, would produce even better results. The lower the price of connecting, the higher the likelihood that vessel operators will opt for this clean solution. Applying the same tax rate across the EU is also crucial in view of ensuring a Level Playing Field between EU ports.
Finally, in view of guaranteeing technology neutrality, which is a key enabler of innovation, the list of zero-emission technologies besides OPS allowed by the FuelEU Maritime Regulation should not be too narrow.
01.09.2021 – EEA-EMSA European Maritime Transport Environmental Report 2021
On the 1st of September, the European Maritime Safety Agency (EMSA) and European Environment Agency (EEA) presented their first report providing a comprehensive overview of the environmental performance of the maritime transport sector in the EU.
The European Maritime Transport Environmental Report (EMTER) analyses the environmental pressures exerted by the sector and provides information on the EU and international environmental standards currently in place.
For instance, the report addresses the GHG emissions of maritime transport, which represent 13.5% of all GHG emissions from transport in the EU. Likewise, air emissions from ships are addressed as they can be detrimental to human health and affect a large part of the EU population as almost 40% of EU citizens lives within 50km of the sea. Other forms of pollution covered include, for example, underwater noise, oil spills and the introduction of non-indigenous species in the marine environment.
The report can be downloaded through this link.
07.09.2021 – International Shipping Competition Agencies Meeting
On the 7th of September, the European Union joined its US and Chinese colleagues for the fifth biennial meeting of the Global Regulatory Summit to discuss competition issues related to the shipping industry and the sectoral developments since the start of the COVID-pandemic.
Participants included the Federal Maritime Commission for the United States, the Ministry of Transportation for China, and a European Delegation led by Henrik Mørch composed of representatives from DG COMP for the EU.
Three broad agenda items were discussed during the meeting:
- The sectoral developments since the start of the COVID-pandemic including an analysis of supply and demand and an identification of bottlenecks in the ocean-linked supply chain and the causes of service disruptions.
- The actions undertaken so far by relevant jurisdictions and authorities in response and their results.
- The way forward and possible actions to increase resilience and smooth operations in the sector.
“The performance of ocean carriers is meeting historic demand for their services and the unusually high costs to move ocean containers are of interest and concern to regulators, legislators, and the public globally. Today’s session of the Global Regulatory Summit provided key competition authorities responsible for the oversight of the container shipping industry the opportunity to share information about what their respective monitoring and enforcement regimes are observing in the marketplace and compare conclusions about carrier behavior.” Observed the Press Release issued by the FMC.
The Summit takes place every two years and is a forum to foster cooperation between the three authorities. The next Summit will be convened in 2023 in China.
09.09.2021 – EU Commission presents ETS and CBAM to EP ENVI Committee
On September 9, the ENVI Committee debated various proposals under the “Fit for 55” package and held an exchange of views with DG CLIMA Director Beatriz Yordi on the revision of the EU Emissions Trading Scheme (ETS).
The European Commission’s “Fit for 55” package proposes to extend the current EU ETS to maritime transport, gradually remove free allowances for the aviation sector and create a new separate ETS system for the road transport and heating sectors. To mitigate the consequences of higher fuel and heating costs, a new EU Social Climate Fund would be set up and financed through revenues coming from the auctioning of allowances.
Regarding the extension of the ETS to maritime transport, Director Beatriz Yordi underlined that this sector plays a crucial role in the EU economy, but it only relies on fossil fuels and prices do not reflect the impact of the sector on climate and the environment. CO2 emissions from EU maritime transport are significant and expected to increase swiftly (+34% at EU level by 2050 compared to 2015). In the Commission’s proposal, ETS will cover around two-thirds of emissions related to EU maritime transport. All emissions from intra-EU voyages and 50% of the emissions from extra-EU ones will be covered. Moreover, large ships (above 5000 gross tonnage) will be covered, and the system will maintain flag-neutrality on routes.
Rather than free allocation, a phase-in period of allowance surrendering is proposed which covers:
- 20% of verified emissions reported for 2023.
- 45% of verified emissions reported for 2024.
- 70% of verified emissions reported for 2025.
- 100% of verified emissions reported for 2026 and after.
On the same day, the ENVI Committees heard a presentation from Gerassimos Thomas, Director General of DG Taxation and Customs Union, on the proposal to establish a carbon border adjustment mechanism (CBAM).
This instrument aims to equalize the price of carbon between domestic products and imports, ensuring that the EU's climate objectives are not undermined while complying with WTO rules and other international obligations.
As explained by Mr. Gerassimos, in the EU, a large bulk of emission reduction will be achieved by ETS, which focuses on domestic emission requirements. Nevertheless, carbon leakage will be a problem if third countries’ climate ambitions do not match those of the EU
CBAM will help ensure the decreases in EU emissions from production, while preventing that EU products are replaced by more carbon intensive imports or that European companies move abroad as the EU strengthens its standards. The aim is to reduce the risk of carbon leakage by encouraging producers in non-EU countries to make their production processes less CO2 intensive. As they reduce free allowances on one side, the CBAM will ensure the EU provides incentives to third country produces to fight climate change.
As part of the proposal, CBAM will include the cement, steel, aluminum, fertilizers and electricity sectors, and will start with a transition period until 2026. During this transition period, importers will report on emissions embedded in their products but there will be no payment of a financial adjustment. The requirement for importers to pay for the carbon content of imported products will only apply as of 2026 and after.
Moreover, Mr. Gerassimos stressed that the Commission will not leave industries alone and that the Commission has sought to include support for innovation in the package. In time, the CBAM will be strengthened, free allocations will be phased out and, through this package, EU industries will have access to two funding instruments: the Innovation Fund and the Modernization Fund targeting energy efficiency and modernization of energy systems in lower income countries.
Regarding the international landscape, Mr. Gerassimos explained that carbon leakage is not unique to the EU and that global recognition is growing. In fact, the G20 also acknowledge the usefulness of carbon pricing. In this sense, the EU partners also need to address the problem of carbon leakage which will hopefully also be addressed in the UN framework this autumn.
14.09.2021 – EU Parliament adopts resolution on a new approach to the Atlantic maritime strategy
On the 14th of September, at its plenary session in Strasbourg, the European Parliament adopted a resolution on a new approach to the Atlantic maritime strategy. The 2013-2020 action plan is currently under review and will be updated for the 2021-2027 period.
The EP resolution among others recommends that an industrial strategy should be developed at Atlantic level and highlights the importance of enhancing the role of Atlantic ports, for example, by improving the sustainable management of ports and by helping ports to protect themselves from the consequences of climate change.
Parliament also calls on the Commission and the Member States to foster “innovative environmental and socioeconomic sustainable projects in the Atlantic maritime sectors” which can include the installation of “green maritime loading infrastructure.”
Furthermore, the EP invites the Commission and industry to assess the benefits of establishing an EU partnership for maritime transport which among others should contribute to creating infrastructure for loading, storing and supplying alternative fuels in ports and cargo terminals as well as to the development of waste management plans for Atlantic ports.
Finally, when it comes to rail, the resolution calls on the Commission and the Atlantic regions to develop strategies to eliminate rail bottlenecks and to enhance rail-port connections.
Source: European Parliament
15.09.2021 – State of the Union - EU launches “Global Gateway” to counter China’s Belt and Road
On September the 15th, the European Parliament hosted the State of the Union address by European Commission President, Ursula Von der Leyen.
In her address, the Commission President touched upon a wide array of issues including the ongoing efforts of the EU to deal with the pandemic and its fallout, the rule of law, climate change, social policy, the need for a more united European foreign policy, and the digital transition. The Commission President was keen to highlight the successes of the Union over the last 12 months, notably in relation to the vaccination campaign, but also stressed the need to now move forward to strengthen the Union.
During her speech, the Commission President underlined that the EU must seek to become a more global player. This means focusing on the next generation of partnerships. In this respect, she pointed to the Indo-Pacific region and the new strategy in this respect. It is important for the EU to be more present in this region and will work towards deepening trade links and economic relations. This is a template for how Europe can redesign its interaction with the world.
Moreover, President Von der Leyen said that the EU has expertise in building roads, but it must become smarter on this type of investments. The EU will launch a “Global Gateway” scheme to compete with China’s Belt and Road Initiative.
“We want to turn Global Gateway into a trusted brand around the world,” she said. “We will build Global Gateway partnerships with countries around the world. We want investments in quality infrastructure, connecting goods, people and services around the world.”
This will be a value-based approach with transparency and good governance with partners. This is about the creation of links and not dependencies. This will be made a priority for regional summits. She then stressed that global trade is good and positive, but it cannot be done at the expense of dignity and freedom. There are around 25 million people threatened into forced labor around the world. The products derived from this should not reach EU markets and the EU will therefore come forward with a proposal to ban these products from the single market.
27.09.2021 – Commissioner Vălean presents “Fit for 55” package in EP TRAN Committee
On the 27th of September, the European Parliament’s TRAN Committee welcomed Commissioner Vălean to discuss the “Fit for 55” package. In her introductory statement, Ms. Vălean highlighted that the Commission’s package includes many components that will affect the transport sector and outlined the main elements of the proposals put forward by DG MOVE, namely the revised Alternative Fuels Infrastructure rules, and the FuelEU Maritime and Aviation proposals.
Regarding the FuelEU Maritime proposal, Ms. Valean noted that the proposal introduces for the first time measures to decarbonize maritime transport by creating a demand for alternative and low carbon fuels. It requires ship operators to reduce the greenhouse gas intensity of the fuels used and calls on the ships with the highest energy demand, namely container and passenger ships, to use onshore power supply in ports or other alternative zero-emission technologies such as batteries or fuel cells.
Concerning LNG, Commissioner Vălean explained that it will be unlikely that in the short-medium term the entire maritime sector will be using only one technology. LNG and even hydrogen are some of the foreseeable solutions, but can still have a negative impact on climate if they come from a fossil path. On the other hand, sustainable biofuel and biogas, synthetic fuels or renewable hydrogen and ammonia have a much more favorable impact. Fossil LNG is only a transitional fuel, which is already available.
Moreover, the Commissioner clarified that the Commission is also proposing mandatory targets for shore side electricity supply in maritime and inland waterway ports. The proposal aims at stimulating private investments. To reach EU climate targets, Member States should also make full use of their Recovery and Resilience Plans. Likewise, the Connecting Europe Facility (CEF) contains a new Alternative Fuels Infrastructure Blending Facility with an unprecedented budget of 1.5 billion euros.
Commenting on hydrogen, Ms. Vălean referred to the Commission’s Hydrogen Strategy which stresses that in the transitional phase, we will need all low carbon hydrogen solutions to replace the existing ones, because more than 90% of the current hydrogen that our industry consumes is coming from natural gas without any carbon capture technology. She also made clear that there are sectors where electrification is not the solution, and hydrogen is an obvious alternative. This is why the Commission will promote hydrogen production in Europe.
During the Q&A session, MEP Vera Tax (S&D, NL) noted that although maritime transport has improved its environmental footprint over the past years, it still faces significant challenges when it comes decarbonization and the reduction of pollution. The EU has a big responsibility to lead on the international scene and must be brave and push for ambitious measures at the IMO level, she said. The MEP argued that the Commission must increase the use of sustainable alternative fuels through FuelEU Maritime in European shipping and ports. However, the MEP warned that the risk of stranded assets for LNG powered vessels or port infrastructures that are not compatible with hydrogen or ammonia are too high, and it's a big concern. The MEP asked if the Commission is ready to discuss reviewing the LNG infrastructure mandate on maritime ports and introduce an ambitious target to deploy hydrogen infrastructure and ammonia instead.
27.09.2021 – CEF Transport Info Day
On the 27th of September, FEPORT attended the virtual CEF Transport Information Day organized by the Commission to cover the priorities and main aspects of the 2021 CEF Transport call and its evaluation and award process, and to give advice on how to prepare and submit a successful proposal.
The CEF budget for the period 2021-2027 will amount to € 25,8 billion and its policy objectives are:
- Contribute to the objectives of the Green Deal and the Sustainable and Smart Mobility Strategy.
- Contribute to the development of the TEN-T, including adaptation of parts of it for civilian-defense dual use.
- At least 60% of the financial envelope will be dedicated to the Union´s climate targets
The CEF work program 2021-2023 budget will be € 18,2 billion. It will be frontloading 70% of the CEF budget, which will be allocated in the period 2021-2023 through:
- 3 calls for proposals of € 5.5 billion each in 2021, 2022 and 2023.
- A 3-year rolling call for the Alternative Fuel Infrastructure Facility of € 1.5 billion (5 deadlines, every 6 months).
- € 200 million for technical assistance actions.
For a project to be eligible, the following conditions are required:
- Climate tracking: Climate tracking of CEF expenditures will be done by topic. The methodology should be consistent with other EU programs. No action is required from applicants.
- Climate proofing: Proofing of climate impact mitigation and adaptation is required for all projects subject to an IEA. It is recommended to use the Technical Guidance on the climate proofing of infrastructure in the period 2021-2027 (Official Journal of the European Union, C 373, 16 September 2021).
- Mitigation measures: Activities relating to the mitigation of environmental impact and the preservation of biodiversity are eligible. Examples: reforestation, ecoducts, noise protection barriers…
- Synergetic elements: Energy or digital investments (beyond what is covered in the calls) are eligible within a limit of 20% of the eligible costs, provided that they improve the socio-economic, climate or environmental benefits of the project. Example: on-site renewable energy generation.
Regarding the maritime and inland waterway cluster, the Commission will support maritime port’s projects on the Core and Comprehensive Networks that have as objective:
- The facilitation of port access.
- The construction of basic port infrastructure with a priority on:
- development of zero- or low emission multimodal solutions;
- development of capacity and facility linked to offshore wind farms;
- improving the connectivity of remote, insular and outermost regions, or of Member States with no land border with another Member State.
- Shore-side electricity supply.
- Port reception facilities for waste from ships.
- Ensuring year-round navigability.
- Rail/road connections within the port.
In the context of the European Maritime Single Window environment, actions aiming at adapting Maritime National Single Windows to the new legal requirements and at integrating the harmonized interfaces into the Maritime National Single Windows will be supported.
Concerning Vessel Traffic Monitoring and Information Systems (VTMIS), the Commission will support actions involved in:
- VHF Data Exchange System (VDES).
- Vessel Traffic Services (VTS) - Future monitoring and communication needs for the enhanced surveillance of autonomous ships and shipping (MASS).
- Mandatory Reporting Systems (MRS) - additional features related to “ship to shore” communication such as. reusing data, reporting only once etc.
Finally, regarding Motorways of the Sea, the actions to be supported are the following:
- Upgrade of port infrastructure, hinterland connections and dedicated terminals, where required to establish or expand SSS links. At least one Core network port of a MS and another Core or Comprehensive Network of another MS has to be involved in such actions.
- Actions facilitating SSS which are not linked to a specific port, for instance ICT platforms, ice-breaking or actions ensuring year-round navigability.
Members' News Corner
25.08.2021 – HHLA participates in H2Global foundation
HHLA will actively take part in the recently founded H2Global foundation in order to implement its hydrogen technology projects.
The foundation is based in Hamburg and has been established in mid-June 2021 by sixteen companies.
H2Global will be buying green hydrogen or hydrogen-based derivatives from abroad in order to sell via long-term contracts in Germany via annual auctions. The German government will support the foundation with EUR 900 million in order to compensate for the different prices of buying hydrogen or derivatives abroad and selling it in the German market.
HHLA will also participate in the governance of the association. In fact, Angela Titzrath, Chairwoman of HHLA’s Executive Board, has been elected Deputy Chairwoman of the H2Global Foundation’s Board of Trustees.
Source: Offshore Energy
07.09.2021 –Yilport cargo volumes rise by 18% as compared to the first half of 2020
In the first half of 2021, the terminals that are worldwide owned by Yilport Holding handled 2.5 million TEU, i.e., a growth of 18% in comparison to the first half of 2020.
Furthermore, the volume of general cargo handled by Yilport increased to 5.47 million tonnes, which equals a growth of 13%.
Yilport holding operates 22 ports and marine terminals around the world, of which 13 are EU based.
Source: Seatrade Maritime News
15.09.2021 – HHLA affiliate Metrans lays foundation stone for new rail terminal in Hungary
On the 15th of September, Metrans laid the first symbolic stone, thereby starting the construction of its rail facility in Zalaegerszeg, Hungary, of which the costs will amount to EUR 40 million.
The terminal will serve as a hub connecting east-west and north-south traffic on the Adriatic and Southeast Europe corridors, with the first trains expected to run in 2023. The project will be supported by the Hungarian government through a sum of EUR 11 million.
Angela Titzrath, HHLA CEO, sees great potential in the project and its location, adding that it will strengthen Hungary’s position as a logistics hub in the heart of Europe.
Source: World Cargo News
FEPORT Sixth Stakeholders’ Conference
Save the date
December 1st, 2021
Events supported by FEPORT
To know more, please follow the link.
13.10.2021 Social Affairs Committee – TBC
21.10.2021 Customs and Logistics Committee – TBC
18.11.2021 Board of Directors – TBC
30.11.2021 General Assembly meeting - Brussels
01.12.2021 Sixth Annual Stakeholders’ Conference - Brussels
11.10.2021 ENVI Committee Meeting – Brussels
11.10.2021 FISC Committee Meeting – Brussels
14.10.2021 ECON Committee Meeting – Brussels
25-26.10.2021 TRAN Committee Meeting – Brussels
26.10.2021 ECON Committee Meeting – Brussels
27.10.2021 FISC Committee Meeting – Brussels
27-28.10.2021 ENVI Committee Meeting – Brussels
05-07.10.2021 World Maritime Week – Bilbao
05-07.10.2021 8th Mediterranean Ports and Shipping 2021 – Valencia
19-20.10.2021 Cool Logistics Global – Rotterdam
20-22.10.2021 GreenPort Cruise & Congress – Piraeus
26-27.10.2021 TOC Europe 2021 – Rotterdam
19.11.2021 SSDC Plenary Meeting – Brussels
01-03.02.2022 EuroMaritime – Marseille