EU confirms to propose ships join emissions trade

BRUSSELS (Reuters) - The European Commission confirmed on Monday it will propose adding shipping companies to the European Union emissions trading scheme, targeting another emitter of greenhouse gases from the transport industry.

The EU executive proposed in December that aviation be added to the scheme, which sets limits on the amount of carbon dioxide (CO2) that big factories may emit and allows them to trade emissions permits if they overshoot or come in below their caps.

EU officials have previously said Brussels was studying the possibility of introducing vessels such as cruise and container ships into the scheme.

A Commission official confirmed on Monday that the EU executive will propose including the industry into the system rather than waiting for action at the international level to on tackle ship emissions.

"Not enough progress has been made in the international framework," she said. "We think it's important to do something on our side."

The official said it was too early to say how and when the industry would be introduced into the scheme and how much of the world's fleet would be covered. Consultations with interested parties would start in September at the earliest, she said.

Ships with EU flags emitted nearly 200 million tonnes of CO2 in 2000, significantly higher than the aviation industry, the Commission's web site says. Ships are also becoming the biggest source of air pollution in the EU, it says.

The Commission drew fire from the airline industry and other countries, notably the United States, for proposing that emissions from intra-EU flights be added to the scheme from 2011 and international flights landing in or departing from an EU city be included from 2012.

The emissions trading scheme is the 27-nation EU's key tool to fight global warming and meet commitments to reduce emissions of greenhouse gases agreed under the Kyoto Protocol.