EU ETS funding to boost maritime and rail decarbonisation

The European Commission has proposed directing a larger share of revenues from the EU Emissions Trading System (EU ETS) to maritime decarbonisation. The World Shipping Council welcomed the move, noting that liner shipping has already invested over €160 billion in vessels capable of running on renewable fuels and that reinvesting ETS proceeds could help close the price gap for clean marine fuels. The Council also warned that a proposed rule expanding the list of neighbouring non‑EU transshipment ports based on infrastructure criteria could disadvantage those ports.

Eight European rail organisations have jointly urged the Commission to allocate part of the ETS revenue to rail infrastructure, including freight corridors, intermodal terminals and electrification projects. They argue that rail, which carries more than 80 % of EU traffic on electrified lines and accounts for less than 1 % of transport‑related greenhouse‑gas emissions, could further reduce emissions and shift freight from road to rail if supported by targeted investment.

Both groups see the reinvestment of ETS proceeds as a practical way to accelerate the EU’s climate targets and improve the competitiveness of low‑carbon transport modes.