Page 176 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΟΚΤΩΒΡΙΟΣ 2024

ENERGY TRANSITION & FINANCING

could provide the test to demonstrate
that the strategic and commercial man-
agement of a ship is actually carried
out within EU territory. This concept
will identify the place where the ship is
effectively (strategically) and commer-
cially controlled, meaning the place where
the essential management and commer-
Tramp shipping accounts for over 75% of cargo cial decisions necessary for the opera-
transported from the EU. How can it be excluded tion of the ship are made, regardless of
from the IF beneficiary criteria? where the ship is registered. Therefore, if
the place of effective management and
control of the ship is within the EU, then
that ship should be treated as an eligible
ship. Last but not least, there is also the
EU-owned vessel criterion, which could
be explored further.
Such criteria should be alternative and
not cumulative. If they are cumulative,
they will end up creating Fortress Europe.
of financing and funding from different about the particularities of the tramp This is not pleading for an EU version of
sources and financial instruments such segment. By the time they grasped it, the US Jones Act. Such a version should
as the European Investment Bank (EIB), they were transferred to another Direc- be opposed as protectionist legislation
European Investment Fund (EIF), Con- torates-General, or their mandate had that is not in line with the letter and spirit
necting Europe Facility (CEF), and HORI- ended, and the briefing had to start all of European policymaking for shipping
ZON EUROPE. Similar issues also exist over again. This is a modern version of the for decades. So, the operative word is
in the technical screening criteria of the condemnation of Sisyphus in the Ancient “alternative” criteria, which will provide
Taxonomy Regulation. Greek myth… Perhaps one of the most a quid pro quo for the tramp sector and
In past decades, Regulation 4056/1986 hilarious instances I recollect was at the treat all shipping segments on an equal
(OJL 378, 31/12/1986, p.4-13), laying briefing in the office of an MEP about the footing for eligibility purposes.
down detailed rules for the application specificities of the tramp segment when Rebus sic stantibus, we will face the fol-
of articles 85-86 of the Treaty to mari- his assistant, not noticing the different lowing oxymoron if no action is taken: the
time transport, contained the following spelling, exclaimed, “I was not aware programme of a consortium of non-EU
definition in article 1(3)(a): that President Trump was involved in flag container ships with 30% of their
“Tramp vessel services” means the trans- shipping”! annual calls at EU ports will be eligible
port of goods in bulk or break-bulk in a In view of the above, the IF eligibility cri- for IF funding, whilst the programme of
vessel chartered wholly or partly to one teria for funds deriving from the EU ETS an EU flag consortium of bulk carriers/
or more shippers on the basis of the voy- revenues should not be flag-blind or tankers with under 30% of their annual
age or time charter or any other form of flag-neutral. Apart from the 30% annual calls at EU ports will not be eligible. It is
contract for non-regularly scheduled or call at EU ports which liner shipping most noteworthy that the vast majority of the
non-advertised sailings where the freight diligently promoted, European policy- Greek-controlled fleet (under the flags of
rates are freely negotiated case by case makers should devise alternative criteria Greece, Malta and Cyprus) are tramp bulk
in accordance with the conditions of regarding the European added value or carriers/tankers. This oxymoron may act
supply and demand”. The definition was European link of tramp ships, e.g. the as a disincentive for registration under a
devised for competition law purposes, establishment or operation of the ship- European flag. The European Innovation
and ever since the repeal of Regulation owning or ship management company at Fund is flag blind and ends up financing
4056/1986 on 17/10/2006, this segment an EU member state, the existence of a the competitors of EU shipping in the
has attracted the attention of neither the European flag, the employment of Euro- name of energy transition: Is that what
lawmakers nor academia. Here is a prime peans at sea and ashore, the existence of the EU lawmakers are after? We hope
topic for a Ph D thesis now that we are high-value European marine equipment not. This is an unintended consequence
bombarded with decarbonisation and its on board (e.g. ballast water manage- of European legislation, which should be
financing! ment systems), and the shipbuilding at corrected if our aim is better legislation.
Despite the above, as a dweller of the EU yards. In this respect, it should become a priority
Brussels institutional headquarters for Another interesting criterion emanating for the European Parliament, the College
decades, I have witnessed the efforts from the Joint Cypriot Shipowners’ Asso- of European Commissioners, and all other
to brief officials of the European Com- ciation (JCSA) is effective management actors, both public and private. The time
mission and the European Parliament and control within the EU. This criterion for action is now.

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