The International Ferry Association (Interferry), which represents the global ferry transport industry, has expressed concerns about the current state of negotiations regarding the EU Emissions Trading System (ETS) and the ongoing competitive inequalities in regulations. With member states pushing for delays in the ETS2 framework for road transport, ferry operators are facing a continuous competitive disadvantage.
High Compliance Costs and Their Effects
Starting in 2024, commercial passenger and cargo ships with a capacity of 5,000 GT and above visiting European ports will be subject to the EU ETS. Compliance costs are currently approximately €250 per ton of diesel fuel. For ferry operators in Europe, the annual cost is estimated to reach around €1 billion. While this measure is designed to encourage a shift to cleaner fuels, its financial burden is imposed in a severely distorted market.
Impacts of Market Inequalities
Ferry routes directly compete with road transport, while road transport, which is a higher-emission sector, continues to benefit from delays related to its ETS2 framework. This framework, which had already been postponed from 2027 to 2028, is now facing renewed pressure from several EU member states for further delays.
This possibility has arisen due to the integration of road transport into the same regulatory category as the construction sector. Political concerns, especially in Eastern and Southern European countries, regarding winter heating costs for households, have exempted road transport from the emissions trading. For ferry operators, this creates a real and damaging market distortion.
Higher costs and unequal distribution resulting from the EU ETS have led to a portion of the transport shift away from ferry services. At the same time, these inequalities make it significantly more difficult to pass on additional costs to customers. Ultimately, this issue results in a lack of necessary investments for the rapid decarbonization of this sector.
The International Ferry Association emphasizes that reducing regulations for one sector should not come at the expense of fair competition in the market, and road transport cannot continue to be exempt from the true pricing of greenhouse gases. Furthermore, the association stresses that all revenues collected from compliance with the maritime ETS should be specifically reinvested for the decarbonization of the maritime sector.
