EU moves to ensure shipping uses low carbon fuels will have a “moderate” but not “dramatic” effect on the Irish economy, according to University of Galway economist Prof Alan Ahearne.
As The Sunday Independent reports, research due to be published by Prof Ahearne and Daniel Cassidy has found that marine fuel prices will continue to rise, due to the drive towards more sustainable energy sources.
However, the impact of ships switching from fossil fuels to more expensive renewable and low carbon alternatives will not have any major effect until 2050.
The research funded by the Marine Institute calculates that by then (2050) it will reduce gross value-added (GVA) economic productivity by almost eight per cent.
Costs of consumer goods are also expected to rise, by just over one per cent by 2040 and by nearly two per cent by 2050 as a result of the marine fuel regulations, Prof Ahearne said.
As an island, Ireland is one of the most heavily dependent economies globally on maritime transport, Prof Ahearne explained.
He was speaking at the “Navigating to 2050" conference hosted by Irish Lights in Dublin Castle this week.
As part of the European Green Deal, a new FuelEU Maritime regulation seeks to steer the EU maritime sector towards decarbonisation.
This is in line with the EU’s “Fit for 55” target – as in reducing net greenhouse gas emissions by at least 55% by 2030.
The regulation sets a fuel standard for ships, and includes a requirement for the most polluting ship types to use onshore electricity when at berth. It also places the responsibility for compliance on shipping companies.
Read more in The Sunday Independent here
