On September 4th, FEPORT submitted its reply to the Call for Evidence regarding technical updates of the Emissions Trading Scheme (ETS) State aid guidelines. The ETS State aid Guidelines provide a framework under which Member States can give aid to certain electro-intensive industries to compensate for potential spikes in electricity costs due to ETS, thereby minimising the risk of carbon leakage: the risk of industry relocating to third countries with lower ambitions when it comes to climate action.
FEPORT submission called for including ports and terminals in the ETS State aid Guidelines as the sector is increasingly becoming electro-intensive as onshore power supply needs to be distributed to vessels at berth while terminal operators are increasingly using electricity to propel their cargo handling equipment. In addition, our sector is increasingly exposed to international competition and risks of carbon leakage as ETS Maritime creates costs for shipping lines calling at ports in the EEA which can be avoided by calling at non-EEA ports. Including ports and terminals in the ETS State aid Guidelines is therefore appropriate – even if ports are not directly covered by the Emissions Trading System – considering the Guidelines’ aims to 1) minimise carbon leakage and 2) compensate electro-intensive industries.
FEPORT feedback to the Call for Evidence can be accessed here.
