Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The World Shipping Council (WSC) is has both negative and positive engagement on climate change regulation globally and within the EU in 2022-24. The WSC appears to support 2050 net-zero CO2 emissions targets, global carbon taxes and a ‘Green Balance’ Mechanism’ to incentivise the energy transition. However, WSC also opposed the extension of EU climate policy to extra-EEA voyages.
Top-line Messaging on Climate Policy: On its corporate webpage, accessed in May 2024, WSC supported net-zero CO2 emissions from international shipping by 2050. A February 2024 press release further supported a 2050 zero emissions target for the maritime sector and global maritime climate regulations. In a March 2024 statement, WSC also supported a global carbon pricing mechanism, without specifying the level of carbon price supported. However, in a position paper published in October 2022, the WSC advocated to limit EU climate regulations to an intra-EU scope using arguments around competitiveness and carbon leakage. WSC does not appear to have recently expressed a clear position on the Paris Agreement.
Engagement with Climate-Related Regulations: Regarding the EU Emissions Trading Scheme (EU ETS), in a January 2022 press release, the WSC opposed including emissions from outer-EEA journeys in the EU ETS, recommending that only intra-EEA journeys be included. In a May 2022 open letter, WSC supported the inclusion of all GHGs under the EU ETS, but advocated for only intra-EEA voyages to be included. However, a senior WSC executive appeared to support the agreement to extend the EU ETS in a December 2022 LinkedIn article, but also stated that it needs to be ‘coherent with global GHG pricing under negotiation at the IMO Maritime Organization’. Following this, in an August 2023 consultation response, WSC appeared unsupportive of the inclusion of non-CO2 emissions in the calculation of fuel emissions under the EU ETS.
Regarding fuel standards, WSC supported maximum GHG intensity targets under FuelEU Maritime in a March 2023 press release. WSC CEO, John Butler further ‘praised’ the legislation according to a March 2023 Euractiv article. Butler also supported the introduction of a global fuel standard in a December 2022 press release. WSC also supported a global fuel standard, with dates dependent on technology production, in an August 2022 submission to the IMO. This position was echoed in a March 2024 statement. WSC also supported the EU’s 2040 90% emissions reduction target in a February 2024 press release.
The WSC has generally supported a carbon tax for shipping, with WSC President John Butler calling for the IMO to adopt a global GHG levy on ships, without specifying a desired price, in a December 2022 press release. WSC similarly supported a global GHG levy in an August 2022 submission to the IMO.
In a February 2022 submission to the IMO, the association appeared to oppose energy efficiency legislation, preferring regulation to promote a transition to alternative fuels. WSC also opposed energy efficiency benchmarks in favor of GHG emissions-based legislation in an August 2022 submission.
Positioning on Energy Transition: WSC appears to support a low-carbon transition of maritime’s energy mix, however its alignment with IPCC guidelines is unclear. In an August 2022 submission to the IMO, WSC supported an increase in ‘low and near-zero GHG’ fuels, however which specific fuels were supported is unclear. WSC supported the usage of renewably produced marine fuels, including e-fuels, blue hydrogen/ammonia and biofuels, in a paper submitted to the IMO in October 2022. However, the association has also suggested that hydrogen produced using fossil fuels without clear conditions for CCS is desirable for shipping in the short-term, in an earlier February 2022 submission.
WSC appeared to support measures to incentivize a transition to green maritime fuels. On its website, accessed in March 2024, WSC called for the Green Balance Mechanism; a measure that taxes fossil fuels and redistributes revenues to green fuels. A March 2024 statement and February 2024 press release also called for this measure.
However, in a March 2023 press release, WSC appeared to a maximum GHG intensity target for ‘alternative fuels over fuel standards proposing a minimum of specific fuel types in the FuelEU Maritime. It further advocated against the addition of e-fuels sub-mandates in the proposal by the EU Parliament, in a 2022 Euractiv article.