Port of Tallinn to Reward Emission-Reducing Ships

Business & Finance

Estonia’s Port of Tallinn has unveiled its intention to reward emission-reducing ships with a discount of up to 8% on tonnage fees starting in 2019.

Illustration. Image Courtesy: Pxhere under CC0 license

The port authority said that differentiated port fees, to be introduced in January 2019, are based on the international Environmental Ship Index (ESI), which evaluates the amount of air pollution emitted by a ship, the vessel’s energy savings measures as well as readiness to connect the ship to onshore power supply.

To receive the discount, ships must hold a specific ESI score. Vessels with the ESI score of 80 and above may apply for a discount of 8% on tonnage fees, while ships with the ESI score between 65 and 79.9 may apply for a discount of 3%.

The new port pricing system involving differentiated port fees is aimed at encouraging shipping companies to adopt environmentally friendlier technologies, contributing to the health of the Baltic Sea ecosystem.

Ellen Kaasik, the Head of Quality and Environmental Management of the Port of Tallinn, noted that the use of the ESI score for differentiated port fees rewards not only the newest LNG or electricity powered vessels, but also other ships that have the highest fuel efficiency and use special equipment to reduce air emissions.

“All the vessels sailing on the Baltic Sea must, naturally, meet current applicable environmental regulations,” Kaasik said.

“Our aim as the landlord port is to encourage shipping companies to make extra efforts for adopting sustainable solutions and thus for protecting the fragile ecosystem of our Baltic Sea.”

The Port of Tallinn first introduced differentiated port fees in 2014, when discounts were made available for cruise vessels sorting their waste. From early 2018, all vessels using LNG as their primary fuel have been offered a tonnage fee discount of 4%.