Port of Rotterdam research highlights loopholes to evade EU ETS cost

The Port of Rotterdam commissioned a study to CE Delft which found that shipping companies could find ways to avoid EU ETS (EU Emissions Trading Scheme) costs by exploiting certain gaps in the system.

The EU ETS system will cover emissions from cargo and passenger ships of 5,000 gross tonnage and above, and have scope to cover:

• 100% of shipping emissions between EU ports
• 50% of shipping emissions to and from EU ports to non-EU ports
• EU ETS cost will not cover voyages between non-EU ports.

CE Delft has highlighted four potential ways to avoid or reduce EU ETS cost:

• Add port calls outside of the EU, such as in the UK or Morocco, and therefore save 50% of costs.
• Change the first port of call after a long voyage to a non-EU port followed by an EU port, which limits the emissions exposure towards the EU ETS to the distance sailed between the added non-EU port and EU port.
• Use feeder vessels to avoid costs for containerships calling at multiple EU ports. A containership can for example call at one port and use two feeder vessels - with lower emissions - to load and carry cargo to additional ports
• Replace containership calls in EU ports with non-EU ports and use feeder vessels to carry goods to EU ports.

To close some of these loopholes, the Port of Rotterdam urges EU policymakers to conduct a broader impact assessment before implementing the EU ETS, which is part of the EU's Fit for 55 policy to reduce net greenhouse emissions by at least 55% by 2030.

A final EU vote on the EU ETS amendments is expected in June this year.