Brussels, Belgium (PortSEurope) October 30, 2023 – The transshipment ports of Tanger Med and Port Said have been added to the list of non-European Union neighbouring container transhipment ports. This means that the two ports will be subject to the new EU emissions regulation on carbon pricing for ships.
The EU ETS is a cornerstone of the EU’s policy to combat climate change and a tool for reducing greenhouse gas emissions cost-effectively. It is the world’s first major carbon market and remains the biggest one.
Under the new law, carbon pricing in the EU ETS is based on vessels rather than cargo, and the law also has extra-territorial application. It means that if a vessel sails between an EU port and a non-EU port, only half of the emissions from the voyage will be subject to the EU ETS. Shipping companies are obligated to purchase allowances for the following emissions:
- 50% of emissions from voyages departing from an EU port to a non-EU port and vice versa.
- 100% of emissions from voyages between EU ports.
- 100% of emissions from ships docked at an EU port.
The first point clearly affects transshipment ports. It is scheduled to go live start 2024.
EU emissions regulation, complaints from EU transshipment ports
Various EU Mediterranean had complained that this would hand an unfair, competitive advantage to some of their non-EU rival ports.
Regarding the EU, the European Commission produced an updated document on the change. It contains the following paragraphs regarding Port Said (Egypt) and Tanger Med (Morocco).
East Port Said is located less than 300 nautical miles from a port under the jurisdiction of a Member State. The share of transhipment of containers of East Port Said exceeded 65 % of the total container traffic of that port during the most recent twelve-month period for which relevant data are available. Egypt does not apply measures equivalent to Directive 2003/87/EC for East Port Said. East Port Said should therefore be identified as a neighbouring container transhipment port.
Tanger Med is located less than 300 nautical miles from a port under the jurisdiction of a Member State. The share of transhipment of containers of Tanger Med exceeded 65 % of the total container traffic of that port during the most recent twelve-month period for which relevant data are available. Morocco does not apply measures equivalent to Directive 2003/87/EC for Tanger Med. Tanger Med should therefore be identified as a neighbouring container transhipment port.
ESPO published a press release on the same issue raising its concerns.
Shipper Maersk also published an opinion article on the topic
