European shipowners call for EU ETS revenues to be invested back into sustainable fuels and technologies

European Shipowners | ECSA and Airlines 4 Europe (A4E) have called on the European Commission to scale up their sectors’ decarbonisation by using the EU and national ETS revenues in investments to make sustainable fuels and technologies available for shipping and aviation.

Shipping and aviation already contribute over €11 billion to the EU ETS revenues annually. As a priority, this money must be channelled into derisking investment in sustainable fuels that are today on average 4 times more expensive for shipping and 3-6 times more expensive for aviation than conventional fuels. Bridging the price gap between sustainable and conventional fuels is key to increasing their availability on the market. The European Commission should require EU Member States to earmark at least part of their ETS revenues for the uptake and availability of sustainable fuels for shipping and aviation, and to incentivise them to top up any existing EU mechanisms with national ETS revenues.

“European shipowners are leading global investments in sustainable fuel-powered vessels, with 44% of the global orderbook, but Europe’s fuel availability is not keeping pace,” said Sotiris Raptis (pictured), Secretary General of European Shipowners | ECSA. “Asia leads with 74% of fuel production projects, while Europe accounts for just 10%. Less than 5% of European sustainable fuel production is currently intended for maritime use.”

“Shipping contributes around €9 billion to the EU ETS. This money should be used at EU and national level to bridge the price gap and support sustainable fuel availability and clean tech projects. This is key for the energy transition of the sector and for the energy security of the continent,” he added.“