The Portuguese government is urging the European Union to relax its emissions trading system (ETS) as applied to maritime transport, arguing that the current rules undermine the competitiveness of its ports, particularly in comparison to Morocco's Tanger Med port. Lisbon contends that EU shipping lines are rerouting to avoid carbon costs, benefiting non-EU ports.
According to reports, Portugal has formally requested that the European Commission adjust the ETS to include a 'geographical neutrality' clause, ensuring that ships calling at EU ports are not penalized when they stop at neighboring non-EU ports like Tanger Med. The Portuguese Ministry of Infrastructure and Housing has stated that the current system creates an uneven playing field, as ships can avoid EU carbon fees by transshipping cargo through Moroccan ports.
The EU's ETS for maritime transport, which came into effect in 2024, requires shipping companies to surrender allowances for 40% of their emissions on voyages between EU ports and non-EU ports. This has led some operators to shift transshipment activities to ports outside the EU, such as Tanger Med, which has seen significant growth. Portuguese officials argue that this not only hurts EU ports but also undermines the environmental goals of the policy.
The European Commission has acknowledged the concerns and is reviewing the implementation of the ETS. A decision on whether to amend the rules is expected later this year. Meanwhile, the Portuguese government is seeking support from other EU member states to pressure the Commission for a swift resolution.
