The world’s largest carbon market is set for a historic revamp. Europe’s shipowners are concerned

The world’s largest carbon market is set for a historic revamp. Europe’s shipowners are concerned

LONDON — The European Union is due to propose an unprecedented overhaul to its carbon market this week, seeking to put a price on shipping emissions for the first time. And the region's shipowners are deeply concerned. The European Commission, the EU's executive arm, is set to present its green fuel law for EU shipping on Wednesday. It is part of a broader package of reforms designed to meet the bloc's . To be sure, the EU has committed to reducing net carbon emissions by 55% (when compared to 1990 levels) through to 2030, becoming climate neutral by 2050. The EU says this will require a over the next three decades. To meet these targets, the EU plans to undergo the biggest revamp of its since the policy launched in 2005. , the ETS is now widely expected to expand to include shipping for the first time. Lars Robert Pedersen, deputy secretary general of BIMCO, the world's largest international shipping association, says it is no secret the industry has concerns about the EU's plans. "There is a strange misbelief in Europe that these kinds of actions put pressure" on other regions to do the same, Pedersen told CNBC via telephone.