European Union officials are planning to close a loophole in the bloc's carbon pricing system that allows ships to reduce their emissions bills by making stopovers outside the EU. Vessels calling at EU ports from outside the bloc are currently required to purchase carbon allowances for only half their journey. However, concerns are rising that ships are strategically stopping at ports in North Africa, the Middle East, and potentially the UK to circumvent emissions costs, rather than genuinely reducing their carbon footprint.

The European Commission intends to expand the list of non-EU ports included in its Emissions Trading System (ETS). This move aims to prevent "evasion" and could significantly increase carbon fees for shipping companies. The current maritime ETS generates between €7 billion and €9 billion annually. The proposed changes, expected around July 17 as part of a broader ETS review, could affect ports in countries like Egypt, Morocco, and Jordan, though UK ports may be less impacted due to ongoing discussions about linking trading systems.

Shipping industry representatives warn that this loophole allows vessels to avoid substantial costs, estimated at €300,000 per call. Some ships are reportedly unloading or loading cargo at neighboring non-EU ports before proceeding to the EU, thereby benefiting from the reduced allowance requirement. This practice not only impacts EU shipping revenues but also raises concerns about supply chain control and potential job losses in EU countries. Shipowners are lobbying for a greater share of ETS revenues to be reinvested in green fuel subsidies.