Shipping Industry Welcomes EU Support to Green Fuel

Shailaja A. Lakshmi
Wednesday, October 31, 2018

The shipping industry and the European Independent fuel suppliers welcome the European Parliament’s support to incentivize the uptake of low-carbon and carbon-free alternative fuels and to remove disparities in energy taxation.

On 25 October the European Parliament adopted its report on The deployment of infrastructure for alternative fuels in the EU which pointed out that taxation has a major impact on the price competitiveness of alternative fuels and underlined that a technology neutral approach should be adopted to create a level playing field.

A press release from European Community Shipowners’ Associations (ECSA) noted that disparities in energy taxation for shore-side supply for ships and energy used to generate alternative fuels should be addressed. It also calls on the Commission to support the decarbonisation of the maritime and shipping sector with a clear focus on innovation, digitisation and adaptation of ports and ships.

The shipping sector and the European independent fuel suppliers welcome the European Parliament’s report which broadly reflects the positions they have taken in its response to the consultations held earlier this year in view of the Evaluation and Fitness Check of the Energy Taxation Directive.

The shipping industry, represented by ECSA, Cruise Lines International Association (CLIA)  Europe, Interferry and EUDA and for Europe’s Independent fuel suppliers (UPEI) extended their support to this initiative.

These stakeholders jointly call for the retention of the tax free bunkers and luboils provided for in the Energy Taxation Directive which are a reflection of the international norm and are essential for EU companies to compete on the same footing as shipowners and suppliers from outside the EU and thus must be retained.

Moreover, they call for the exemption for fuels to dredgers to become mandatory in order to avoid market distortions and loss of competitiveness.  

However, they recognise that the current Directive is not providing equal treatment of energy supplies to the shipping industry thus hampering investments in and the uptake of cleaner technologies, such as shore side electricity, fuel cells, methanol, etc.  They therefore advocate a technology neutral approach.  

In view of the global nature of the industry and the importance of moving to greener shipping through the use of cleaner technologies in order to ensure that environmental objectives are met, a revised EU Energy Taxation Directive should provide for a mandatory EU wide taxation exemption for all energy carriers (i.e. fuels and electricity, including shore-side). Such level playing field would help close the cost gap between Heavy Fuel Oil and alternative fuels and electricity.

Theo therefore welcome the initiative taken by the European Parliament calling the EU Member States to incentivize the uptake of low-carbon and carbon-free alternative fuels and to remove disparities in energy taxation. They also support the call to the EU to increase and facilitate the use of Liquefied Natural Gas and shore-power electricity by further investment in port infrastructure.

Categories: Energy Renewable Energy Europe Environmental

Related Stories

Eni and Petronas JV Extend Ventura Offshore’s Drilling Job in Indonesia

Oil Surges 3% on Renewed US-Iran Strikes

Saudi Arabia Eyes Oil Pipeline Expansion to Red Sea

SBM Offshore, SWS Sign Deal for Seventh FPSO Hull

Iran War Sparks Global Rush to Build Strategic Oil Reserves

EnQuest to Buy Malaysia Offshore Interests in $833M Deal

SBM Offshore to Sell 45% Stake in Mexico-Bound FSO to NYK

Vantage Drilling Agrees to $258M Takeover by Eldorado Drilling

Azerbaijan’s Absheron Gas Project Advances with New Sales Agreement

Oil Prices Rise as Iran Talks Stall and Inventories Shrink

Current News

From Fixtures to Values: Where the Jackup Recovery Is Already Being Priced

Eni and Petronas JV Extend Ventura Offshore’s Drilling Job in Indonesia

Dolphin Drilling’s Blackford Dolphin Secures More Work for Oil India

Oil Surges 3% on Renewed US-Iran Strikes

Offshore Vessel Pair Ordered from Grandweld Shipyard

ADNOC, XRG and Mitsui Broaden Energy Cooperation

Ruwais LNG Commitments Top 90% Capacity with New INPEX Deal

Saipem Lands $2B FPSO Deal for Offshore Gas Field in Indonesia

Oil Climbs on US-Iran Deal Uncertainty

Saudi Arabia Eyes Oil Pipeline Expansion to Red Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com