German shipowners press for carbon trading transparency
The German shipowners’ association VDR on Tuesday, called on the Berlin government to enact laws that would incorporate the shipping industry into the European Union’s carbon trading scheme, as per the EU’s requirements, according to Reuters.
The German shipowners’ association, VDR, has criticised the government for its delay in implementing an EU agreement from late 2022 that requires shipowners to purchase EU carbon permits to stimulate investment in greener technologies.
The EU law, approved in 2023, mandates vessels to pay for 40 per cent of their emissions this year, to be increased to 70 per cent in 2025 and 100 per cent in 2026.
VDR’s managing director, Martin Kroeger, emphasised the need for global consistency in emissions pricing to avoid paying twice for the same emissions.
Shipping, which accounts for nearly 3 per cent of global CO2 emissions, is challenging to decarbonise. Despite opposition from countries like China, efforts are underway at the International Maritime Organisation (IMO) to achieve net-zero emissions by 2050.
Germany, the world’s seventh-largest shipping nation with a merchant fleet of 1,800 ships, is the largest operator of container ships.
Lastly, VDR noted that current geopolitical diversions to avoid the Red Sea are costing operators $1 million per tour, although the situation in the Black Sea has improved for German ships.
