Shipping is responsible for around 10% of EU ETS emissions but pays almost 20% of the ETS bill. Unlike other sectors, it has never received free allowances.
The new Sustainable Maritime Alternative Propulsion (SMAP) mechanism is a chance to reinvest part of this contribution in shipping’s energy transition. But a new study by European Shipowners | ECSA finds that the Commission’s proposed 110 million allowances cover only a third of what is needed.
SMAP needs at least 330 million allowances (EUR 30 billion) to help create a market for sustainable maritime fuels and technologies, the study finds. For SMAP to meet this objective, this support must cover all sustainable fuels and technologies, including energy efficiency projects, that facilitate the energy transition of shipping.[…]