German owners push EU to drop ETS for shipping

Chief executive Ralf Nagel sets out VDR's target to convince members of the European parliament
that industry regulation is IMO business

German shipowners regard Europe's stance on shipping emissions as "inconsistent" and are pressing members of the European
Parliament (MEPs) to allow the International Maritime Organization (IMO) to regulate the industry.

The German Shipowners' Association (VDR) has been critical of European policies this year, with its latest disagreement focusing on
shipping emissions.

It turned out to be the most heated debate during the European Shipping Week (ESW) hosted in Brussels last week, shortly after the
European Parliament included shipping in the European Emissions Trading System (ETS).

VDR chief executive Ralf Nagel told TradeWinds on the sidelines of ESW: "There is a tendency to have more and more regional
regimes.

"From our point of view, it was not very consistent that there was a lot of criticism over Trump and Brexit and then Europe decided to
make a unilateral regulation on shipping emissions."

VDR was one of the first associations to slam Europe's plans when MEPs voted in favour of including shipping in the ETS back in mid-
February.

Several institutions opposed the plan and are understood to be lobbying the European Commission (EC) to amend its approach.

Nagel said: "We are very clearly asking European politicians not to make regional regimes, not to include shipping in the ETS, for
example, but bring it to the IMO in London to regulate it globally.

"The target is that MEPs eventually decide that this is the IMO's business."

The VDR boss noted that regulatory challenges are on top of existing market constraints that have already put tremendous pressure on
shipping companies.

"Things have to be regulated and shipping is the most-regulated industry worldwide, but the principle is that regulation has to be a global
one, this is our biggest concern," Nagel said.

Europe transport commissioner Violeta Bulc said during ESW's main conference that she was determined to find a solution "on an IMO
level".

Bulc responded to shipowners' requests for less regional regulation by asking them to use their power to influence their national states
during their emissions negotiations.

As TradeWinds reported online, Jos Delbeke, EC director general for climate action, asked the IMO to take more action and set specific
emissions reduction targets.

Nagel said: "We have a very hard competition with other maritime centres such as Singapore, Hong Kong and Vancouver, which are
looking very carefully at how they can strengthen their maritime industry.

"We want to show that we are a strong maritime side, and the others are not sleeping," he said.