The European Shipowners' Association (ECSA) has called for a threefold increase in carbon permits allocated to support the transition to marine energy. The association argues that the maritime transport sector contributes nearly twice its share of carbon emissions to the revenues of the European Union's Emissions Trading System (ETS).
Need for More Permits
According to a study published by the European Shipowners' Association, the proposed "Sustainable Marine Alternative Mobility" (SMAP) mechanism requires at least 330 million permits, while only 110 million permits are currently considered by the European Commission.
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Financial Support for Clean Fuels
This association estimates the need for financial support to be around 30 billion euros (33.6 billion dollars), aimed at reducing the cost gap between traditional marine fuels and cleaner options. This proposal is part of the ongoing revision of the EU ETS and still requires approval from the European Parliament and Council.
With the end of the phase-in period, shipping companies must submit permits covering 100% of their carbon emissions starting in 2026. The association estimates that shipowners will purchase around 90 million permits annually. Assuming a carbon price of 100 euros per permit, this translates to an annual cost of approximately 9 billion euros (10.1 billion dollars).
The proposed SMAP mechanism addresses support for companies using low-emission fuels and technologies, allocating permits to offset some of their additional costs. ECSA believes that this proposed reserve, which will be implemented from 2028 to 2040, will only meet about one-third of the industry's estimated needs.
The association also calls for expanding support to energy efficiency investments and emphasizes this issue instead of focusing solely on fuels and alternative systems. The Secretary-General of the association, Sotiris Raptis, has urged European lawmakers to expand the proposed reserve to provide greater assurance for investments in clean marine technologies.
This intervention comes as shipowners are assessing the costs of increased compliance with carbon against the realities of alternative fuels, fleet upgrades, and new propulsion systems.
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