Emerging economies square up to EU on ships' carbon emissions rules - ICIS Heren

Posted - July 24, 2012 - ICIS Heren

A rift has emerged between the EU and key emerging economies over how ships' carbon emissions should be tackled at this year's UN climate summit, documents show.
Position papers submitted to the UN also show that no agreement is in sight in relation to airlines' involvement in the EU emissions trading system.
The EU wants to use this year's climate summit in Doha, Qatar, to tell the UN's shipping and aviation bodies - the International Maritime Organisation (IMO) and the International Civil Aviation Organisation (ICAO) - that they must develop and agree global deals on cutting their industries' emissions.
The EU believes such a move is crucial if greenhouse-gas emissions are to be reduced in the years leading up to the implementation of a new global climate deal in 2020.
But 18 developing countries including emerging economic powerhouses Brazil, China, India and South Africa want the parties to the UN talks to agree that only developed countries must take steps to cut emissions from shipping and civil aviation.
The developing countries want any industry-sector approach to tackling emissions to be made in line with the guiding principle of "common but differentiated responsibility" - the rule under the Kyoto Protocol whereby the developed world, known as Annex I, has to take the lead in cutting emissions (see EDCM 17 July 2012).
Any moves to cut emissions by shipping and aviation should also be consistent with historical responsibility for climate change - which lies more or less exclusively with the developed world, the coalition of developing countries said.
They want the parties to the forthcoming UN climate summit to agree that "all parties included in Annex I shall pursue limitation or reduction of emissions from civil aviation and maritime bunker fuels, working exclusively through" ICAO and IMO.
But the EU has already sidestepped the ICAO by implementing unilateral measures tackling airlines' emissions and it could do the same for shipping.
In its submission to the UN, the EU said it wants ICAO and IMO to agree that their industries "will be regulated on an equal, non-discriminatory basis, irrespective of their country of registration".
On behalf of the bloc, EU presidency-holder Cyprus said: "Applying measures to ships and aircraft registered in developed countries only would effectively mean that only a small share of emissions from these sectors would be addressed, given that more than 70% of ships and a number of key fast-growing international airlines, including Emirates, Cathay Pacific, Singapore Airlines, Korean Air and South African Airlines, are registered in developing countries.
"It would also mean that aircraft operators and ships registered in developed countries, operating on the same routes as developing country operators, would be at a competitive disadvantage. Furthermore, such an approach would probably lead to carbon leakage, with commercial entities potentially shifting their operations or re-flagging in order to evade reduction regulation."
The EU held a consultation process earlier this year on including shipping in its emissions trading system but has not yet published the results
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