8 Nov 2021
Singapore

Press Release
ASA strongly opposes EU-ETS but supported the adoptionof an International Maritime Research Fund through levybased system on Marine Fuel for Shipping
As matter of principle, the Asian Shipowners’ Association (ASA) strongly
opposes any proposal for the unilateral or regional regulation ofinternational shipping that may undermine the authority of International
Maritime Organisation (IMO), which has been given responsibility byUNFCCC Parties for regulating the reduction of international shipping’s
GHG emissions, as these emissions cannot be attributed to individual
national economies.
As the industry’s global regulator, IMO is the only appropriate forum forthe development of a market-based measure (MBM) applicable tointernational shipping – this is a position shared by most IMO MemberStates. In this regard, the development of a global MBM is alreadyincluded as a mid-term candidate measure under IMO’s Initial Strategy.
As such, the ASA Safe Navigation and Environment Committee (SNEC)
is very concerned that the inclusion of shipping in the EU ETS is being
taken forward with little apparent understanding of the implications for theongoing negotiations at IMO to eliminate GHG emissions from the sector
globally, or the wider ramifications for the EU’s relationships with its
trading partners
In particular, as representatives of Asian shipowners, the ASA isconcerned that the application of the EU ETS to non-EU flag ships isessentially an extraterritorial tax when the EU needs to encourage global
trade, not create new barriers. Furthermore, ASA is concerned that, if theEU goes ahead with this extraterritorial approach, other nations aroundthe world might feel entitled to emulate this unwelcome precedent,
applying their own ‘carbon charges’ to international voyages, which
originate or terminate at ports outside their territory, creating chaos andfragmentation of the global maritime regulatory framework.

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Rather than incentivising the transition to zero-carbon technologies, theextension of the EU ETS to shipping will only serve to impede the processof decarbonisation of international shipping, putting the EU in conflict withthe achievement of both IMO and UNFCCC climate change objectives, as
the incorporation of shipping into the EU ETS will have profound
implications for the future authority of IMO. This could potentially derail
the concerted efforts by all IMO Member States, including Europeannations, to eliminate CO2 emissions from shipping completely.
For our part, the preference of the ASA SNEC would be for the adoptionof an International Maritime Research Fund to drive innovation, paid forby a mandatory contribution on fuel used by ships, into technology theindustry needs to cut carbon emissions by 50% in 2050 and ultimately
eliminate those emissions, supported by a levy-based system linked tofuel consumption/CO2 emissions, as this is the form of MBM which theshipping industry has determined will be least likely to create unfair
competition or distortion of global shipping markets.
**********For media enquiries, kindly contact:
Dylan Ow
Technical Manager
Asian Shipowners’ Association (ASA)
Tel : (+65) 6325 4737
Email : information@asa.org.sg
Website : www.asianshipowners.org
Editor’s Note:
The Asian Shipowners’ Association (ASA) is a voluntary organization of the shipowner associations of Australia,
China, Chinese Taipei, Hong Kong, Japan, Korea and the Federation of ASEAN Shipowners’ Associations
comprising shipping associations of ASEAN countries. The aims of the ASA are to promote the interests of Asianshipowners. Between annual ASA meetings, the ongoing work is carried out by five Standing Committees: TheSeafarers Committee (SC), the Ship Insurance and Liability Committee (SILC), the Safe Navigation andEnvironment Committee (SNEC), the Shipping Policy Committee (SPC), and the Ship Recycling Committee (SRC).
It has been estimated that ASA shipowners and managers control and operate around 50% of the world's cargo
carrying fleet.

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