EU Advocates Push for Mandatory Tax Exemption for Shore Power to Support Green Deal

The European Sea Ports Organization (ESPO) and The Federation of European Private Port Companies and Terminals (FEPORT) are advocating for an EU-wide mandatory tax exemption for shore power in the revised Energy Taxation Directive. They believe that this exemption is essential to support the European Green Deal ambition and the polluter pays principle. Despite the European Commission’s proposal and the compromise text in the European Council, they are concerned that the new Energy Taxation Directive does not effectively promote the use of shore power, which is a key priority in the Alternative Fuels Infrastructure Regulation (AFIR).

According to AFIR, by 2030, container and passenger ships above 5000 gross tonnes must connect to shore power while at berth for at least two hours. Ports designated as TEN-T core and comprehensive should be equipped to provide shore power for at least 90% of port calls each year. ESPO and FEPORT emphasize that an EU-wide tax exemption for electricity provided to ships at berth is crucial to incentivize the use of shore power as soon as it is available.

The Energy Taxation Directive Commission proposal from 2021 allows Member States to grant a total or partial tax exemption for electricity supplied to vessels berthed in ports. While this proposal eliminates the need for Member States to seek authorization from the Commission, ESPO and FEPORT believe it falls short of creating a mandatory and permanent EU-wide exemption for shore power. They argue that such an exemption would create a level playing field among Member States and make shore power more competitive for shipping lines.

In conclusion, ESPO and FEPORT are urging for a mandatory and permanent EU-wide tax exemption for onshore power supply to align with the priorities outlined in AFIR. They believe that implementing this exemption at the EU level would send a clear signal to shipping lines and make shore power a more attractive option for vessels in ports across Europe.

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