Sunday, December 10, 2023

John Whelan: Ireland is missing out on Green shipping-corridor expansion

The lack of involvement of Irish ports and the shipping lines that use them puts Irish exporters at a disadvantage to UK and other European exporters

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The shipping lines operating from Irish ports have passed the cost of CO2 taxes on to their export and import customers. 
Picture: David Creedon

SUN, 10 DEC, 2023 
John Whelan

Members of the Global Maritime Forum have travelled to Dubai for the launch of their annual progress report on green shipping corridors, at COP28. Green-corridor initiatives have doubled and the number of stakeholders has increased significantly, but Ireland was a no-show.

The number of green-corridor initiatives around the world went from 21 to 44 over the past year, many of them in Europe, including green shipping corridors from the UK to Belgium, the Netherlands to the UK, the UK to Denmark, and Norway to the UK. Crucially, there was no mention of any green shipping corridor from Ireland.

The lack of involvement of Irish ports, and of the shipping lines that use them, puts Irish exporters who wish to move up the green value chain at a disadvantage to UK and other European exporters.

The omission of Ireland from green shipping corridors points to a lack of incentives to attract shipping lines to invest in the latest green shipping technology. Norway, Denmark, France, Germany, and Britain have co-invested with shipping lines to design new ammonia-, hydrogen-, and electric-powered ships for their routes in the Nordic area and in the Mediterranean.

These shipping lines are major operators in transporting goods in and out of Ireland weekly, and will continue with the older, higher-CO2-emitting vessels for longer than will countries that are committed to green corridors.

The report, released in conjunction with COP28, says that 2024 will be pivotal for green corridors, which are trade routes where zero-emission shipping is catalysed by public-sector and private-investor action. Along with the marked advancements, the report also identifies challenges when green shipping corridors commence, including fuel decisions to secure both commercial arrangements and the necessary port infrastructure.

Most of Ireland's ports are state-owned and operate under Climate and Transport Minister Eamonn Ryan's portfolio, which begs the question why an opportunity to show the nation's green credentials in this area of vital economic importance is not being taken.

The doubling of announced green-corridor initiatives over the past year was driven by increased government effort to establish green corridors, with the collaboration of industry and ports.

Green shipping corridors could enable the Department of Transport to create regulatory measures to decarbonise shipping, including financial incentives to lower the cost of green-fuel production. This could mobilise demand for green shipping.

Finally, green corridors could create secondary effects that reduce shipping emissions on other routes. For example, once the infrastructure to provide zero-emission fuel for one green corridor, such as Dublin to Holyhead, is established, it can then be used for shipping on other routes, such as Dublin to Cherbourg, fast tracking a second green corridor.

The UK has also pressed forward at COP28, with its initiative with the US, creating a Green Shipping Corridor Task Force to establish green shipping corridors between the two countries.

Europe's CO2 tax on shipping is also looming, with the introduction of EU ETS carbon-emissions regulations on January 1, 2024. The premise is that carriers must measure and report each ship's CO2 emissions and then buy allowances for each tonne of CO2 emitted. This should incentivise industry-wide investment in cleaner technologies, making them comparatively less expensive. However, the shipping lines operating from Irish ports have, instead, decided, in the absence of government support by way of green-corridor initiatives, to pass the cost of these CO2 taxes on to their export and import customers, adding to the difficulties created by this year’s weak trade growth.

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