Shipping costs could rise considerably if new EU plans are rubber-stamped at global climate talks later this week.

The new plans – which could force the shipping industry to cut its carbon dioxide emissions by 20% below 2005 levels over the next ten years – could cost the industry up to €6bn a year.

EU diplomats have claimed that any cuts could be linked to a tax on fuel, with any new scheme potentially generating billions of dollars to help poor countries deal with the potential impact of climate change – currently a key stumbling block as the world moves towards the Copenhagen summit at the end of 2009.

At present emissions from both the shipping and aviation industry – which could itself come under pressure to cut emissions by 10% in comparison to 2005 levels – are not covered by the Kyoto treaty.

The move is unlikely to be welcomed by some of Europe’s major nations. An industry association report published last week by Britain, Belgium, Norway and Sweden argued that shipping would be better suited to a cap and trade system, as opposed to a tax-based.  

However, there is little disputing the impact of shipping on sustainability targets.

Research published in 2007 using figures from BP by researchers at the Institute for Physics and Atmosphere in Wessling, Germany, found that annual emissions from shipping made up almost 5% of the global total. 

A further study by the International Maritime Organisation estimated that emissions from global shipping fleets could increase dramatically as demand for larger ships continued to grow. It warned that without action emissions from ships could increase by a staggering 72% by 2020.

Richard Edwards

A lack of co-ordination between two of the European Union’s major economic and environmental strategies could hold back the implementation of a Europe-wide approach to sustainability, a leading figure has warned.

Speaking to SustainableSourcing, Gerald Berger, a senior representative from the European Sustainable Development Network (ESDN), said that the lack of a common interface between the Lisbon Treaty and the EU Sustainable Development Strategy was storing up problems for both the public and private sector – particularly in a worsening economic climate.

“There seems to be two parallel strategies and the interfaces between the two are very difficult to find,” said Berger. “There is a feeling, at least at a policy level, that sustainability is still seen as a concept rather than a guiding principal.”

The ESDN, which includes representatives from the EU’s 27 member states, was set up in 2006 with the aim of co-ordinating policy between both different countries and policy sectors.

The Lisbon strategy, which set out the strategic goal of the EU becoming the most “competitive and dynamic knowledge-based economy in the world” by 2010, was widely welcomed by leaders across the continent.

However, while the Lisbon strategy deals primarily with measures to enhance economic growth and development, the EU’s sustainable development strategy is pre-occupied with intra-and inter-generational equity and quality of life.

“I think there are big challenges ahead and, at the present time, economic issues are still the decisive factor,” said Berger.

An indication of sustainability’s growing importance in the wider business was recently emphasised by Andre Schneider, managing director and chief operating officer of the World Economic Forum.

“We need to rethink the business model in view of sustainability and ethical frameworks,” he said as world leaders gathered in Davos to discuss the global financial crisis.