The International Association of Dry Cargo Shipowners (Intercargo) has backed the International Maritime Organization's (IMO) concerns surrounding the inclusion of shipping in the European Union’s emission trading system (EU-ETS).

Last week, IMO secretary-general Kitack Lim claimed that the addition of shipping in the EU-ETS could hinder efforts to reduce greenhouse gas (GHG) emissions from the sector.

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Expressing concern, Lim had then said: “I am concerned that a final decision to extend the EU-ETS to shipping emissions would not only be premature but would seriously impact on the work of IMO to address GHG emissions from international shipping.

“Inclusion of emissions from ships in the EU-ETS significantly risks undermining efforts on a global level.”

In December last year, EU’s Environment Committee signed an agreement, stating that emissions from ships should be included in EU-ETS from 2023 if IMO does not deliver a further global measure to cut GHG emissions for international shipping by 2021.

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"Inclusion of emissions from ships in the EU-ETS significantly risks undermining efforts on a global level."

However, IMO has already approved a plan to develop a comprehensive strategy on reducing GHG emissions from ships, through to a 2023 horizon.

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According to Intercargo, IMO is the appropriate body to address the global challenges faced by the shipping industry.

In 2011, IMO issued various technical and operational energy-efficiency requirements, which need to be followed by new and existing vessels; these came into effect in 2013.

Intercargo also claimed that the EU’s December agreement, which has yet to be approved, showed insufficient thinking amid various challenges faced by the shipping sector worldwide.