EMEA News
Shipping Groups Back Proposed EU ETS Revisions Supporting Alternative Marine Fuels
The European Commission's proposed revision of the EU ETS has won support from Danish Shipping and the World Shipping Council (WSC) for its focus on alternative marine fuels and technologies.
The proposals include a new Sustainable Maritime and Propulsion (SMAP) mechanism to help close the price gap between conventional and alternative marine fuels, alongside the use of the Innovation Fund to support maritime decarbonisation.
"It is positive that the Commission is maintaining a stable framework for the EU ETS," Nina Porst, Executive Director of Sustainable Ships and Skills at Danish Shipping, said in an emailed statement on Friday.
"Shipping companies need clear and long-term rules when making substantial investments in the green transition."
WSC also welcomed the proposal, saying reinvesting ETS revenues into shipping would help accelerate the uptake of alternative fuels.
"Liner shipping has already invested over €160 billion in ships that can operate on renewable fuels, but these cleaner ships need cleaner fuels," Simon Bergulf, Vice President, Environment and Climate at WSC, said.
"Closing the price gap is one of the most practical ways to get those fuels into ships' tanks."
Danish Shipping also welcomed the Commission's proposal to lower the ETS threshold to 400 GT for selected vessel categories, saying it would create a more level playing field and increase demand for alternative fuels and propulsion technologies by bringing more vessels into the system.
IMO Alignment and Avoiding Double Payment
Danish Shipping welcomed the Commission's intention to align the EU ETS with a future GHG measure under development at the IMO, helping avoid double payments once a global system enters into force.
WSC also supported the objective but said it would like to see a stronger commitment in the final legislation to prevent ships from paying twice under the EU and IMO systems.
"Since the EU ETS for maritime transport interacts with global measures under development at the IMO, the proposal provides for a review clause that refers to a possibility for a measure to avoid double payments (Article 3gg)," the Commission's document states.
Port Competition Concerns
While supporting the overall direction of the review, WSC raised concerns over proposals affecting neighbouring non-EU transhipment ports.
The organisation said expanding the list of ports subject to the ETS based on infrastructure rather than actual transhipment activity could harm competition without delivering additional emissions reductions.
"The ETS should be focused on cutting emissions, not making neighbouring non-EU ports less competitive," Bergulf said.
Next Step
The Commission's proposals will now be negotiated by the European Parliament and the Council, with a possible agreement in the first half of 2027 and implementation expected in 2028.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 865.50 | 8.50 | 1289.50 | 14.50 |
| Rotterdam | 686.50 | 12.00 | 1390.00 | 40.00 |
| Houston | 740.50 | 7.50 | 1388.00 | 1.50 |
| Fujairah | 963.50 | 12.50 | 1666.50 | 19.50 |
| EMEA Average | 851.50 | 9.00 | 1698.00 | 20.00 |
| Global 20 Ports Average | 876.00 | 6.00 | 1520.50 | 13.50 |
| Global 4 Ports Average | 814.00 | 10.00 | 1433.50 | 18.00 |
| Global Average Bunker Price | 935.00 | 3.00 | 1594.00 | 14.00 |
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