Ferry fares rise as carbon emissions trading takes financial toll

Greek shipping companies are facing significant financial strain following the implementation of the European Emissions Trading System, with costs already being passed on to passengers through higher ticket prices.

According to Greek business outlet Newmoney, these surcharges are being felt most acutely on high-demand routes such as the Piraeus to Crete line and Adriatic Sea connections.

Developments in the sector have sparked deep concern among ferry operators and island communities who depend entirely on sea transport for their survival.

The international body representing the ferry industry, Interferry, has raised the issue at a European level to highlight the growing regulatory burden.

By writing to the relevant European Union bodies, the organisation has requested an immediate suspension of the further expansion of the carbon trading scheme into the shipping sector.

The current regulatory framework represents an excessive burden and creates a serious distortion of competition, the institutional body argued.

Data provided by the industry group indicates that the trading system imposes an annual cost of approximately one billion euros on intra-EU shipping services.

This financial drain limits the ability of companies to invest in cleaner technologies while directly increasing the transport costs for passengers and goods in countries with extensive island networks like Greece.

A central point of criticism involves the unequal application of the green measures across different transport modes.

While short-sea shipping is fully integrated into the emissions system, road transport remains excluded following a specific decision by the Council of the European Union.

This creates a competitive disadvantage for roll-on/roll-off vessels and passenger car ferries despite their lower environmental footprint compared to heavy goods vehicles, the industry body maintained.

The organisation also raised serious concerns regarding the management of revenues generated from the emissions trading scheme.

Instead of being systematically directed toward the decarbonisation of shipping, most funds end up in national budgets without clear commitments for investments in alternative fuels or port electrification.

The obligation to surrender emission rights should be maintained at 70 per cent rather than increasing to 100 per cent in 2026, the organisation proposed.

This freeze should remain in place until road transport is also included in the carbon pricing system, the industry body added.

Any further increase in costs may drive cargo back onto already saturated road networks, the trade group warned.