European shipowners and airlines have stepped up pressure on the European Commission to recycle ETS revenues into cleaner fuels, warning that shipping and aviation are paying billions into a system that is not delivering enough support for decarbonisation, according to a joint statement by European Shipowners | ECSA and Airlines for Europe (A4E).
The two associations said shipping and aviation already contribute more than €11bn ($12.6bn) a year to EU ETS revenues, but sustainable fuels remain too costly and too scarce to support the transition at scale.
They urged the Commission to require EU member states to earmark at least part of their ETS revenues for sustainable fuel uptake and availability in shipping and aviation, and to incentivise governments to add national ETS income to existing EU mechanisms.
Sustainable fuels are on average four times more expensive than conventional fuels for shipping and three to six times more expensive for aviation, the associations said. Bridging that price gap is essential to bringing more supply to the market.
“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. 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,” said Sotiris Raptis, secretary general of European Shipowners | ECSA.
“Shipping contributes around €9bn ($10.3bn) 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.
European Shipowners | ECSA is an association representing 21 national shipowners’ associations in the EU and Norway. It works on regulatory issues affecting European shipping, including competitiveness, safety and sustainability.
