Port groups warn EU carbon tax risks driving transshipment traffic away

The World Shipping Council and major European port bodies are demanding the EU Parliament strengthen the Emissions Trading System (EU ETS) to stop transshipment traffic from deserting European hubs. The joint appeal warns that the current proposal lacks the measures needed to protect the competitiveness of the continent’s terminals.

The World Shipping Council (WSC), the European Sea Ports Organisation (ESPO), the Federation of European Private Port Companies and Terminals (FEPORT), and Assarmatori signed the joint letter. They addressed the appeal to Members of the European Parliament’s ENVI and TRAN committees. While the groups welcome the European Commission’s proposed incentive for transshipment, they are calling for improvements to ensure it effectively supports European ports, investment, and jobs.

Why it matters

The risk is that the EU ETS makes calling at European transshipment hubs more expensive than using non-EU alternatives. If the final rules do not protect competitiveness, traffic will likely shift to ports outside the system’s reach. This would undermine the environmental goals of the policy while stripping business from European terminals.

For shipowners and port operators, the stakes involve the long-term viability of European hub-and-spoke networks. The joint letter suggests the current Commission proposal is a starting point but lacks the specific improvements needed to keep investment within the bloc.

The focus on jobs and investment shows that the industry views the current ETS review as a threat to the economic health of port communities. Without stronger measures, the capital needed to maintain European maritime infrastructure may move to regions with lower regulatory costs.

What to watch

The ENVI and TRAN committees will now consider these industry demands as they review the EU ETS framework.

Source: World Shipping Council