The European Sea Ports Organisation (ESPO) and the Federation of European Private Port Companies and Terminals (FEPORT) are calling for an EU-wide mandatory tax exemption for onshore power supply (OPS) in the revised Energy Taxation Directive (ETD).

ESPO and FEPORT emphasise that a revised energy taxation policy must adhere to the polluter pays principle, effectively reducing emissions from shipping and port operations while accelerating the energy transition within the shipping sector. They argue that OPS is critical to achieving these goals, as it provides vessels with the ability to use shore-based electricity instead of relying on onboard generators, thus minimising air pollution in port areas.

However, both associations express concern that the current compromise text of the ETD does not adequately promote the adoption of OPS. They highlight that the use of OPS is a major priority under the new Alternative Fuels Infrastructure Regulation (AFIR), and the lack of a supportive taxation framework could hinder its implementation. According to AFIR, by 2030, container and passenger ships above 5000 gross tonnes must connect to OPS while at berth for at least two hours and TEN-T core and comprehensive ports should therefore be equipped to provide it each year for at least 90% of the port calls.

The ETD Commission proposal from 2021 gives Member States the option to give a total or partial tax exemption to electricity directly supplied to vessels berthed in ports. Currently, Member States have to ask the Commission to apply such an exemption and if authorisation is given it counts for six years.

“Even if the Commission proposal is making a modest step in the good direction by eliminating this burdensome procedure for the Member States, it is a missed opportunity not to turn the option into an EU wide mandatory and permanent exemption for OPS,” a joint statement said.

“We therefore call for a mandatory and permanent EU wide tax exemption for onshore power supply which would help deliver the priorities set in AFIR. By applying the tax exemption on the EU level, the ETD would ensure a level playing field between the different Member States, giving shipping lines a clear signal and making the use of OPS more competitive.”

The European Sea Ports Organisation (ESPO) and the Federation of European Private Port Companies and Terminals (FEPORT) are calling for an EU-wide mandatory tax exemption for onshore power supply (OPS) in the revised Energy Taxation Directive (ETD).

ESPO and FEPORT emphasise that a revised energy taxation policy must adhere to the polluter pays principle, effectively reducing emissions from shipping and port operations while accelerating the energy transition within the shipping sector. They argue that OPS is critical to achieving these goals, as it provides vessels with the ability to use shore-based electricity instead of relying on onboard generators, thus minimising air pollution in port areas.

However, both associations express concern that the current compromise text of the ETD does not adequately promote the adoption of OPS. They highlight that the use of OPS is a major priority under the new Alternative Fuels Infrastructure Regulation (AFIR), and the lack of a supportive taxation framework could hinder its implementation. According to AFIR, by 2030, container and passenger ships above 5000 gross tonnes must connect to OPS while at berth for at least two hours and TEN-T core and comprehensive ports should therefore be equipped to provide it each year for at least 90% of the port calls.

The ETD Commission proposal from 2021 gives Member States the option to give a total or partial tax exemption to electricity directly supplied to vessels berthed in ports. Currently, Member States have to ask the Commission to apply such an exemption and if authorisation is given it counts for six years.

“Even if the Commission proposal is making a modest step in the good direction by eliminating this burdensome procedure for the Member States, it is a missed opportunity not to turn the option into an EU wide mandatory and permanent exemption for OPS,” a joint statement said.

“We therefore call for a mandatory and permanent EU wide tax exemption for onshore power supply which would help deliver the priorities set in AFIR. By applying the tax exemption on the EU level, the ETD would ensure a level playing field between the different Member States, giving shipping lines a clear signal and making the use of OPS more competitive.”