S6 Ep21: Fotini Ioannidou, Director of Waterborne Transport Directorate General for Mobility and Transport European Commission

As countries prepare for a decisive vote on the IMO Net-Zero Framework, the EU Commission expresses confidence that the first global pricing mechanism for greenhouse gas (GHG) emissions from international shipping will be adopted. Podcast highlightsIn this conversation, the EU Commission’s Director of Waterborne Transport, Fotini Ioannidou, explains why she remains confident that the IMO Net-Zero Framework will be adopted by a ‘large majority’ of member states at an extraordinary session of the organisation’s Marine Environment Protection Committee (MEPC) in mid-October. While acknowledging that pressure from the United States, which includes possible retaliation against countries that will support the proposed global GHG pricing mechanism, is ‘serious’ and will weigh on countries’ positions, she does not believe it will be sufficient to destroy what she describes as ‘the commitment of the global community to deliver this first-of-its-kind global decarbonisation agreement.’Asked what ‘plan B’ would look like if a majority of countries reject the Framework, she insists that there is ‘no credible alternative’ to the deal and there won’t be an opportunity to negotiate another one. She warns that, should MEPC fail to adopt the global regulation, the consequence would be regulatory fragmentation that would raise administrative burdens and costs for shipping.  Fotini also responds to calls, from the industry, for the EU to align its Emissions Trading System (ETS) and FuelEU Maritime regulations. She assures that the review process for both legislations will start ‘without delay’ as soon as the global framework is adopted to avoid a double regulatory burden for shipping companies. Looking ahead, she also remarks that the next phase of negotiations on the development of guidelines is ‘likely to prove as difficult’ as were the talks that led to the agreement on the Net-Zero Framework itself. She singles out guidelines on rewards for zero or near-zero (ZNZ) fuels as ‘a priority among priorities’, which she says will be critical to provide clarity for investment in new fuels and energy sources.