The European Sea Ports Organisation (ESPO) has welcomed the European Commission’s proposal to address carbon leakage under the EU Emissions Trading System (EU ETS), while warning that further assessment is needed to ensure the measures do not create new competitive disadvantages for European ports. ESPO said the Commission’s proposal acknowledges concerns over carbon and business leakage, particularly through changes to the list of neighbouring non-EU ports aimed at reducing evasive port calls. The organisation described the move as an important recognition that the current EU ETS framework has distorted competition between EU and neighbouring non-EU ports. However, ESPO cautioned that the proposed measures must be carefully assessed to ensure they are not overly complex and do not create new opportunities for circumvention. The organisation also voiced strong opposition to extending the scope of the EU ETS Maritime to smaller vessels. According to ESPO, lowering the threshold from 5,000 GT to 400 GT could encourage a shift of cargo from short sea shipping to road transport, undermining the EU’s objective of promoting more sustainable transport modes. “We see a certain willingness of the Commission, recognising that carbon and business leakage are real issues that need to be addressed,” said Isabelle Ryckbost, Secretary General of ESPO. “While changes to the neighbouring ports list may help reduce certain forms of evasive behaviour, EU ports still suffer a disadvantage towards the surrounding non-EU ports. Moreover, new issues risk to arise with bringing the smaller shipping segment under the EU ETS.” ESPO also called for the EU proposal to be reviewed once the International Maritime Organization (IMO) finalises its Net-Zero Framework, arguing that future global climate measures should be reflected in European legislation. As the proposal moves to the European Parliament and the Council, ESPO urged policymakers to strengthen