Greece Risks Becoming Trump’s Trojan Horse in the Fight to Decarbonise Shipping

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Green shipping can ensure that Europe’s leading shipping industry remains on top.

Originally published on Lloyd’s List

As anyone knows, any great Greek tragedy is defined by an act of betrayal. Back in November, as the International Maritime Organization came to vote on the biggest climate deal in its history, under pressure from the US, several EU states broke ranks. Greece, along with Cyprus, decided to abstain instead of backing the EU position that had been years in the making. Now the Greeks have gone one step further; they have joined the petrostates.

The Greek government announced that it is co-operating with Saudi Arabia, working on a joint position to “curb CO₂ emissions from shipping”. In doing so they are bypassing the EU on the issue. This could yet trigger an infringement procedure in Brussels. One EU diplomat noted that it is for the EU to table a common position at the IMO — led by the European Commission and agreed among member states; aligning with the Saudis is likely to go against those agreed positions. For now, the Greeks have said they are not abandoning the EU position.

Greek minister of environment and energy Stavros Papastavrou emphasised that Greece is “a voice of realism in Europe, when it comes to energy”. But when Trump is threatening Europe’s own territories, it would be idealistic to believe that aligning with the US-supported position is good for Europe’s energy security. Greece recently signed its first offshore gas exploration agreement in four decades, in a deal with ExxonMobil.

Where will this IMO alignment lead us? A senior US official said that Washington intends to kill the IMO’s Net-Zero Framework. We know that the US already doesn’t like EU carbon pricing and Trump will want to see this rolled back. Will the Greeks’ continue to fall in line with the US to undermine the EU’s existing climate laws?

The truth is, rolling back the ETS regulation won’t make Europe more competitive, nor more resilient. The only people that benefit from this new alignment are billionaire Greek ship owners and overseas oil companies.

Much of the Greek fleet is geared towards moving commodities around in bulk, and oil is a big part of this. This largely explains why Greece is siding with the US and the Saudis. But this is not 1926. Fossil fuels are on the way out. While the Saudis might talk a good oil game, behind closed doors they are preparing for a future beyond oil. Greece has a giant shipping industry, but if it does not prepare itself for a world of green fuels it will be left stranded.

What we need now is unity. Green fuels are a major industrial opportunity for Europe, which up to now has been heavily reliant on imported fossil fuels. Green shipping can ensure that Europe’s leading shipping industry remains on top. The EU should ensure that carbon market revenues and strategic funds are used to support countries like Greece to prepare itself.

The world is more uncertain than it has been for a long time and European unity is more important than ever. Europe’s climate leadership on shipping is one of the continent’s great achievements in the 21st century. Abandoning it now to join the US and the Saudis would be a true tragedy.

By Fanny Devaux, Interim Director, Shipping. Article from T&E.