European Shipowners call for SMAP allowances to be tripled in EU ETS revision

European Shipowners | ECSA has urged the European Parliament and the Council to triple the number of emission allowances set aside for shipping’s energy transition, as the two institutions work on the European Commission’s proposal to revise the EU Emissions Trading System (ETS).
The Commission’s proposal, published on 17 July, introduces a Sustainable Maritime Alternative Propulsion (SMAP) mechanism that would reserve up to 110 million allowances between 1 January 2028 and 31 December 2040 for shipping companies using low- and zero-emission fuels or propulsion technologies.

Citing a recent study, ES|ECSA says this covers only a third of what is needed and that SMAP should be increased to 330 million allowances.

According to the same study, shipping accounts for around 10% of the emissions covered by the EU ETS but contributes almost 20% of its revenues. The association puts shipping’s contribution to national and EU ETS revenues at EUR 9 billion a year.

“Shipping pays almost 20% of total ETS revenues, although it accounts for only 10% of the emissions covered by the system, and, unlike other sectors, it has never received a single free allowance,” said Sotiris Raptis, Secretary General of European Shipowners | ECSA.

Beyond more allowances, the association wants SMAP extended to all technologies that deliver carbon savings, including energy efficiency projects, and for companies to be able to apply for support before taking investment decisions. It also proposes rewarding European production of fuels and technologies through bonus points rather than made-in-Europe requirements, and that member states’ general earmarking of ETS revenues include a dedicated envelope for shipping.

Of particular relevance to ferry operators, ES|ECSA is calling for the existing derogations for islands, outermost regions, ice-class vessels and transnational public services and public service obligations to be maintained, extended and made fit for purpose, citing local economies, connectivity and regional cohesion.

On offshore vessels, the association welcomes the Commission’s proposed rule changes, including a revised port call definition intended to address competition from non-EU offshore companies. However, it objects to one system applying from 2027 to 2030 and a different one from 2031, arguing that only the new rules should apply.

ES|ECSA further proposes replacing the transhipment exemption with an annual Commission report on port competitiveness and infrastructure needs, with national ETS revenues funding port upgrades where needed. It also calls for simplification of the EU Monitoring, Reporting and Verification (MRV) Regulation to align the ETS, MRV and FuelEU Maritime and reduce the administrative burden on companies.

okt 27 2026