THE European Commission has approved, under EU State aid rules, a EUR570 million (US$609.6 million) Italian scheme to incentivise ships to use shore-side electricity in port, reports London's Port Technology.
The measure contributes to reducing greenhouse gas emissions, air pollution and noise in line with the objectives of the European Green Deal.
Under the scheme, aid in the form of a reduction of up to 100 per cent of "general system charges" in electricity prices is aimed at financing public policy goals, such as renewable energy. This reduction is expected to lower the cost of electricity for ship operators purchasing shore-side electricity, making it competitive with onboard electricity production using fossil-fuelled engines.
By lowering the cost of shore-side electricity for ships, the measure aims to incentivise ship operators to opt for a more environmentally friendly electricity supply, thereby avoiding significant GHG emissions, air pollutants and noise emissions. Initially, the reduction will cover 100 per cent of the general system charges. The scheme will run until 2034.
The commission assessed the scheme under EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which enables Member States to support the development of certain economic activities subject to certain conditions, and the Guidelines on State aid for climate, environmental protection and energy (CEEAG), which allow Member States to support measures reducing or removing CO2 emissions.
https://shippingazette.com/
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