The proposal earmarks 110 million allowances for the shipping sector, worth approximately EUR 10 billion, alongside a requirement that 50 per cent of member states' ETS revenues be earmarked at national level, with shipping decarbonisation among the priority purposes. ECSA points out, however, that this represents only a fraction of the roughly EUR 90 billion the sector is expected to pay into the system between 2030 and 2040, and argues the full potential of shipping-generated revenues should be directed towards the sector's energy transition.

Support for sustainable fuels was singled out as a strong positive. Such fuels are on average four times more expensive than conventional alternatives, and the association welcomed the eligibility of fuels produced both in Europe and in certain third countries. The simplification of reporting requirements between the EU ETS and FuelEU Maritime was also welcomed as a means of cutting administrative burden, as was the level playing field secured for EU-based offshore operators.

On the negative side, ECSA criticised the narrow list of eligible clean technologies, which it says should instead cover the full range of energy efficiency projects capable of delivering immediate emission savings across the existing fleet. The association also objected to derogations for small islands, outermost regions and ice-class vessels being extended only to 2035 rather than for the full operational period of the system, arguing they should be made automatic, permanent and fit for purpose to safeguard connectivity for Europe's most vulnerable regions.

Regarding the IMO process, ECSA acknowledged progress in the commitment to avoid double payments should an international agreement be reached, but said the proposal stops short of signalling that the EU ETS would be withdrawn once a global agreement is adopted.

"Today, the Commission has taken a first step to earmark ETS revenues at EU and national level," said Sotiris Raptis, Secretary General of European Shipowners|ECSA. He added that technologies capable of quickly improving energy efficiency have been left without support, with eligibility limited to wind and electricity alone, and that a clear signal on ETS withdrawal following a global agreement remains missing.

ECSA said it looks forward to contributing to the legislative process in the European Parliament and the Council.

© Shippax