European shipowners seek triple EU support for green marine fuels
In Europe, European Community Shipowners’ Association called for tripling the European Commission’s proposed support for sustainable maritime fuels and technologies in an October report, arguing that 330 million EU emissions allowances are needed from 2028 to 2040 to narrow the cost gap with conventional fuels.
ECSA’s analysis found that the Commission’s proposed Sustainable Maritime Alternative Propulsion mechanism, or SMAP, would provide just 110 million allowances, leaving a 220 million allowance shortfall.
SMAP would award emissions allowances to shipping companies to offset higher costs for sustainable fuels and technologies. Proposed support rates range from 55% for biogas and advanced biofuels to 90% for renewable fuels of nonbiological origin and eligible technologies.
ECSA estimates sustainable marine fuels cost four times more than conventional fuels on average. The association warns that insufficient funding could reduce payments below the proposed support rates, undermining efforts to expand sustainable fuel use and deploy energy efficiency technologies.
Category: Sustainable Marine Fuels
