PreprintArticleVersion 1This version is not peer-reviewed
Crossing the “European Green Deal” Maritime Measures and the Unfair Competition on the ETS Tax Regime—The Deviation Traffic Danger Between EU and Non-EU Hub Ports
Version 1
: Received: 11 July 2024 / Approved: 12 July 2024 / Online: 12 July 2024 (11:35:04 CEST)
How to cite:
LYNCE DE FARIA, D. Crossing the “European Green Deal” Maritime Measures and the Unfair Competition on the ETS Tax Regime—The Deviation Traffic Danger Between EU and Non-EU Hub Ports. Preprints2024, 2024071037. https://doi.org/10.20944/preprints202407.1037.v1
LYNCE DE FARIA, D. Crossing the “European Green Deal” Maritime Measures and the Unfair Competition on the ETS Tax Regime—The Deviation Traffic Danger Between EU and Non-EU Hub Ports. Preprints 2024, 2024071037. https://doi.org/10.20944/preprints202407.1037.v1
LYNCE DE FARIA, D. Crossing the “European Green Deal” Maritime Measures and the Unfair Competition on the ETS Tax Regime—The Deviation Traffic Danger Between EU and Non-EU Hub Ports. Preprints2024, 2024071037. https://doi.org/10.20944/preprints202407.1037.v1
APA Style
LYNCE DE FARIA, D. (2024). Crossing the “European Green Deal” Maritime Measures and the Unfair Competition on the ETS Tax Regime—The Deviation Traffic Danger Between EU and Non-EU Hub Ports. Preprints. https://doi.org/10.20944/preprints202407.1037.v1
Chicago/Turabian Style
LYNCE DE FARIA, D. 2024 "Crossing the “European Green Deal” Maritime Measures and the Unfair Competition on the ETS Tax Regime—The Deviation Traffic Danger Between EU and Non-EU Hub Ports" Preprints. https://doi.org/10.20944/preprints202407.1037.v1
Abstract
The maritime industry contributes to over 80% of global trade and ranks as the sixth-largest emitter of greenhouse gases. The International Maritime Organization has taken strides to reduce these emissions, while the European Union spearheads efforts to establish sustainable maritime transport. However, meeting decarbonisation targets poses significant challenges, with the potential implications of adopting an EU Emission Trading System (ETS) on shipping allowances, particularly at specific borders. If not managed effectively, this could result in diversifying regular container shipping routes away from EU ports, potentially leading to increased shipping emissions and disrupting the logistics trade and security chain. These challenges are exacerbated by the International Maritime Organization's lack of a carbon fee on bunkering, which creates an imbalance. The ETS Directive has fostered unfair competition between EU and non-EU ports due to discrepancies in applying emission unit allowances. It is imperative to implement preventive measures to contain and prevent the shift of operations from EU ports to nearby ports, ensure equitable treatment of EU transhipment ports and their competitors, and thwart carbon leakage. Additionally, the recent Houthis attacks on the Red Sea have significantly impacted shipping costs on the Cape of Good Hope route to Europe, necessitating increased allowances to and from Europe.
Keywords
Decarbonization; Emission Unit Allowances; Emission Trading System; EU ETS Directive; European Green Deal; Fit for 55; International Maritime Organization; Suez Canal; Traffic Deviation; Transhipment Ports
Subject
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
