EU shipping and airline groups urge ETS revenues to fund green fuels

European shipowners and airline associations have asked the European Commission and member states to allocate a portion of the EU Emissions Trading System (ETS) proceeds to support the production and use of sustainable fuels for shipping and aviation. The groups estimate that the maritime and aviation sectors together contribute more than €11 billion annually to the ETS fund, yet sustainable fuels remain up to six times more expensive than conventional options. They argue that directing ETS revenue toward green fuel projects would narrow the price gap, stimulate market supply and secure industrial investment.

Separately, the regional governments of Sardinia (Italy) and Corsica (France) have sent a joint letter to their national administrations requesting a five‑year moratorium on applying the ETS directive to inter‑island ferry and flight routes. The officials warn that strict ETS enforcement could raise transport costs for residents and businesses, undermining competitiveness and mobility on the islands. The proposal is slated for discussion at an upcoming Italy‑France summit in Antibes.