European Shipowners | ECSA and Airlines 4 Europe (A4E) call on the European Commission to scale up the sectors’ decarbonisation by using the EU and national ETS revenues in investments to make sustainable fuels and technologies available for shipping and aviation.
The two sectors contribute more than €11 billion annually to ETS revenues, according to industry estimates, with shipping accounting for €9 billion and aviation another €2.3 billion in 2024 alone.
The groups stated that while both industries are paying into the system, the revenues are not being sufficiently recycled into the technologies required to meet the EU’s decarbonisation targets.
The main obstacle is the cost of alternative fuels. Sustainable marine fuels are around four times more expensive than conventional fuels, and sustainable aviation fuels (SAF) cost between three and six times more than traditional jet fuel.
Bridging the price gap between sustainable and conventional fuels is key to increasing their availability on the market.
Both parties noted that the European Commission should require EU Member States to earmark at least part of their ETS revenues for the uptake and availability of sustainable fuels for shipping and aviation, and to incentivise them to top up any existing EU mechanisms with national ETS revenues.
Mr. Sotiris Raptis, Secretary General of European Shipowners | ECSA, stated:
“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.
Shipping contributes around €9 billion 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.
Ms. Ourania Georgoutsakou, Managing Director of Airlines for Europe (A4E), added in her official statement:
“European airlines contributed €2.3 billion to EU ETS in 2024 alone – a figure set to exceed €5 billion annually by 2030.
Yet the revenues are not being recycled back into the fuels and technologies airlines need to decarbonise.
The 20 million SAF allowances on the table fall short of what 2030 will demand, and without clarity on post-2030 availability, the investment case simply does not stack up. Airlines – and ultimately passengers – are paying into a system that is not working for them – or for the climate.
Investing ETS revenues in fuel availability and offtakes is essential for decarbonising shipping and aviation and Europe’s energy security.
Capital Link Editorial
