Work in progress to ensure that EU Ports’ competitiveness is safeguarded
The European Commission’s proposal to revise the EU Emissions Trading System comes at a defining moment for European climate policy. The question is no longer whether Europe should decarbonise, but how it can do so while preserving the industrial and logistical base needed to deliver that transition.
This balance is particularly important for maritime transport. Since the Commission first proposed extending the ETS to shipping in July 2021, FEPORT has consistently warned that the system could affect the competitiveness of European ports and terminals. By applying a carbon price to voyages between EU and non-EU ports, the ETS can create incentives for shipping lines to reorganise their rotations, divert transhipment activities or add calls outside the EU. In such cases, port activity - and potentially emissions - may simply move elsewhere rather than disappear.
The existing rules already acknowledged this risk by identifying certain neighbouring container transhipment ports, including Tanger Med and East Port Said. Stops at these ports are not considered the beginning or end of an ETS-covered voyage, limiting the possibility for shipping lines to reduce their obligations by adding an intermediary call.
The Commission is now proposing to strengthen this safeguard by broadening the criteria used to identify neighbouring container transhipment ports and reviewing the list more frequently. FEPORT welcomes this recognition that the initial framework did not cover the full range of competitive pressures faced by European ports.
Another significant development is the proposed temporary container-based adjustment for large containerships arriving at an EU port after a long-distance voyage. Under this mechanism, the number of allowances to be surrendered could be reduced according to the proportion of containers transhipped at the EU port and subsequently carried to a non-EU destination. Although technical in its design, the measure sends an important signal: an EU transhipment port should not be placed at a structural disadvantage when handling cargo whose origin and destination are both outside the Union.
These proposals represent progress, but they may not address every form of evasion. Shipping networks are complex and can be reorganised rapidly. Relay operations, changes to port rotations and the redirection of transhipment volumes may continue to expose EU ports to competitive disadvantages. The effectiveness of the new safeguards will therefore depend on close monitoring of actual market developments, reliable data and the ability to adjust the rules quickly when new diversion practices emerge.
Competitiveness, however, cannot be protected through anti-evasion measures alone. The other side of the equation is investment.
The proposal foresees dedicated support for sustainable maritime fuels and zero-emission propulsion technologies. These investments are necessary, but maritime decarbonisation does not stop at the ship’s rail. Ports and terminals must invest in onshore power supply, alternative-fuel facilities, energy storage, digital energy-management systems and low- or zero-emission cargo-handling equipment. Many of these projects involve substantial initial costs, long implementation periods and uncertain returns.
Nevertheless, ports and terminal operators remain insufficiently recognised in the proposed allocation of ETS-related support. This is a missed opportunity. They are indirectly affected by the ETS through changes in shipping traffic, while also being expected to provide much of the infrastructure on which the maritime energy transition will depend.
Earmarking part of the revenues generated by ETS Maritime for investments in ports and terminals would not weaken the EU’s climate objectives. On the contrary, it would help turn the carbon price into concrete emissions reductions while mobilising additional private investment. Such support must also be accessible to private terminal operators, which are responsible for many of the operational and equipment investments required on the ground.
As the proposal enters the legislative process, the debate should go beyond the number of ports included on a list. The real test will be whether the revised ETS can prevent carbon leakage and traffic diversion, preserve the environmental integrity of the system and channel sufficient investment towards the infrastructure enabling maritime decarbonisation.
FEPORT and its members are currently analysing the proposal and see some clear potential for improvement and finetuning of the proposals.
There is room for optimism as the EU Commission’s ETS proposal sends a clear signal that the future of ports and terminals and their competitiveness is now a priority. FEPORT looks forward to engaging in the coming weeks with the EU Commission and the European Parliament to discuss our proposals to improve the text.
SAVE THE DATE
FEPORT Ninth Stakeholders' Conference
Dear institutional stakeholders, dear members, dear colleagues and friends,
We are pleased to announce that FEPORT's Ninth Annual Stakeholders' Conference will be held on 3 December 2026 at Residence Palace in Brussels.
We hope to have interesting discussions on how the EU can unleash the potential of Public-Private Partnerships (PPPs) in the Transport and Logistics sector.
Please pencil the date on your calendars and stay tuned as the program and invitation will be sent in the coming weeks.
We look forward to welcoming you in Brussels.
The FEPORT Team
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