On July 17th, the European Economic and Social Committee adopted an own-initiative opinion on the economic impact of the Emission Trading System which particularly focusses on the recent amendments introduced through the Fit for 55 package and the inclusion of maritime transport.
The Committee’s opinion expresses support for the aims of ETS to reduce emissions but urges that impact assessments need to be improved in view of safeguarding employment, competitiveness and cohesion across regions in the EU.
The opinion notes that ETS may disincentivise investments in EU ports, stressing that this risk is particularly relevant for EU Mediterranean ports that compete with ports in North Africa. In addition, the economies of islands including Ireland, Cyprus and Malta could be most affected by economic pressures due to the application of EU ETS.
The ESSC also underlines that measures aimed at decarbonising shipping should ideally be global in order to avoid carbon leakages. The Committee therefore expresses its support for the recently adopted Net-Zero framework at IMO level.
The Committee finally welcomed the Commission’s recent CBAM simplification proposals, which it regards as a step forward when it comes to balancing the needs of environmental protection and reducing administrative burdens.
