European shipowners welcome revenue allocation in EU ETS but criticize limited clean tech support

The European Commission has unveiled a revised proposal for the EU Emissions Trading System (EU ETS) covering the maritime sector. The plan earmarks about 110 million emission allowances for shipping, representing roughly €10 billion, and commits 50 % of member‑state ETS revenues to decarbonising the industry. It also introduces support for sustainable marine fuels, simplifies reporting requirements and guarantees equal competition terms for European vessels.

The European Community Shipowners’ Association (ECSA) praised the revenue‑locking mechanism and the backing of sustainable fuels, noting that the proposal allows fuel support from both European and certain third‑country sources. However, the association warned that the list of eligible clean‑technology projects is too narrow – focusing mainly on wind‑propulsion and electric power – and excludes many energy‑efficiency measures that could deliver rapid emission cuts. ECSA also objected to the limited timeframe for exemptions for small islands, ice‑class vessels and remote routes, which extend only to 2035. The body called for funding to cover the full range of technologies envisaged under the EU’s Industrial Accelerator Act.

ECSA General Secretary Sotiris Raptis said: “The Commission made a first step toward dedicating ETS revenues at European and national levels. Support for sustainable fuels is welcome and essential, but the proposal falls short on clean‑technology backing.” The proposal aligns with IMO efforts to avoid double payments but does not provide a clear stance on withdrawing the EU ETS once a global IMO agreement is reached.