Korea Shipowners' Association(KSA) has recently taken the definite opposite stance on the introduction of market-based measures such as emissions trading system and carbon tax to control emission of ship's green-house gases that European Commission(EC) is propelling.

EC is collecting the opinions from the stakeholders with regards to application of market-based measures to the emissions trading system(reducing emission of green-house gases and sale&purchase of the certified emission reduction) or carbon tax(levying certain rate of tax on ship's fuel) targeting for the vessels coming in and out of the ports inside EU region.

In this connection, KSA presented dissenting opinion to EC and asked for withdrawal of application of market-based measures considering the regulations on emission of ship's green-house gases are being discussed in depth at International Maritime Organization(IMO).

KSA's objection is that IMO is going to start regulating emission of green-house gases from ocean-going vessels as of 1st Jan. 2013 based on revision of MARPOL(the International Convention for the Prevention of Pollution from Ships) in July 2011. KSA is saying that EU's independent regulation is not advisable in view of IMO's actions.

Further, it is alleged that regulating ship's emission in EEZ(Exclusive Economic Zone) and international waters could be regarded as violating sole discretion of flag state stipulated in UN Convention on the Law of the Sea.

KSA said "The cargoes would migrate to railway or truck once market-based measures have been applied to the ships emitting less green-house gases per ton/mile. So it could not only impede growth of shipping industry but cause more emission of the gases."

Meantime, International Chamber of Shipping and Japan Shipowners' Association also presented dissenting opinion against EC's market-based measures.