Carbon NewsHow Shipping will be Affected by the EU's New Carbon Deal?

How Shipping will be Affected by the EU’s New Carbon Deal?

The EU is proposing a new carbon pricing plan that will impact the price of carbon emissions, specifically in the transport sector.

Legislation in the EU is being drafted to accomplish the goal of being carbon neutral by 2050. To accomplish this goal, the EU is seeking a 90% reduction in transport emissions by 2050.

Solutions for Shipping

Alternative methods of transport and fuels will be provided to member states to reduce emissions. The EU mentions multimodal transport as a solution. This results in multiple transport avenues such as railways or waterborne transport for goods to move within the union.

As a result, these trade routes can be simplified and optimized in a way that keeps pollution to a minimum.

There is staunch opposition from shipping companies, as green alternatives to current fuels such as renewable hydrogen or ammonia are not incentivized in the deal. Rather, the EU is incentivizing using natural gas as a fuel source, which can be considered toxic if fuel spills are to occur.

Inland Waterways – the Future?

According to the EU, inland waterways account for 17% of the emissions that road transport uses and 50% of the emissions railways use. Inland Waterways would decrease carbon pollution, while also decongesting many high traffic land routes.

Noise pollution is also a factor that would decrease with increased shipping through inland waterways.

 



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