EU set to go it alone with carbon tax on world merchant fleet

AS GENERALLY expected, the European Commission (EC) has now published a proposed extension of the European Union's (EU) Emissions Trading System (ETS) to cover shipping.

This matters to the rest of the world, and especially Singapore as the top global shipping centre, both for legal/political reasons and for the potential effect on prospects for achieving coordinated practical measures leading to globalisation.

The following explanation of what is being proposed comes from an official EC statement issued last week: "To ensure that the maritime transport sector contributes to the EU's climate ambitions, the Commission is proposing to extend the scope of the EU's Emissions Trading System to cover CO2 emissions from large ships (above 5,000 gross tonnage), regardless of the flag they fly.