Cruise & Ferry Review - Spring/Summer 2024

79 COMMENTARY Protecting the environment is high on the regulatory agenda for the global shipping industry. On 1 January 2024, the Maritime into the European Union Emission Trading System (EU ETS) entered force, requiring operators to pay for the carbon dioxide they emit. With today’s fuel prices, the additional cost is estimated to be around €150 ($163) per ton of fuel. EU ETS covers 100 per cent of intra-EU voyages and 50 per cent of voyages from/to the EU for all ships above 5,000gt. It is likely that the UK will introduce a corresponding scheme in future. There is a phase-in period with 40 per cent coverage for 2024, 70 per cent for 2025 and 100 per cent as from 2026. In addition to carbon dioxide, methane and nitrous oxide will be covered by the EU Monitoring, Reporting and Verification from 2024 and by the EU ETS from 2026. Similarly, 2023 marked the introduction of the International Maritime Organization (IMO) Carbon Intensity Indicator (CII). It has caused difficulty and confusion for ro-pax and ro-ro ferry operators; from the onset it was subject to a 2026 review before being equipped with any compliance requirements. This indicates that the CII was not fit for purpose when introduced. We have consistently argued that an operational energy efficiency requirement is inherently incompatible with the diverse fleets of ro-pax and ro-ro ferries. In terms of carbon dioxide saved, it is considerably less effective than more direct instruments such as a fuel levy or standard. Additionally, over 90 per All aboard for a busy 2024 While greenhouse gas emissions dictate Interferry’s regulatory agenda, the global association’s long-standing engagement with domestic ferry safety remains key, says CEO Mike Corrigan MIKE CORRIGAN A Canadian former energy industry executive, Mike Corrigan joined Interferry in 2017 after 14 years with BC Ferries – among the world’s largest ferry operators – where he was president and CEO from 2012. Photo: Adobe Stock/R. Jeff Huth