European shipowners seek triple funding for green transition

European shipowners are calling on the European Commission to triple the available emission allowances to support the maritime industry's transition to cleaner fuels and technologies. According to a study by the European Community Shipowners' Associations (ECSA), at least €33 billion is required for the 2028–2040 period, which is three times the €11 billion currently proposed by the Commission.

The request is based on an estimated carbon dioxide emission allowance price of €100 per unit. ECSA highlights that sustainable maritime fuels currently cost, on average, four times more than conventional fuels.

To mitigate these costs, the proposed Sustainable Maritime Alternative Propulsion (SMAP) mechanism would provide companies with emission allowances to offset the price gap. While the European Commission proposes allocating 110 million allowances for 2028–2040, ECSA argues that at least 330 million are necessary. The mechanism aims to cover varying percentages of the cost difference, such as 55% for biogas and advanced biofuels, 80% for low-carbon hydrogen, and up to 90% for renewable fuels.