The association says the proposal largely limits clean technology support to wind propulsion and electrification. File Image / Pixabay

The European Commission on Friday proposed revisions to the EU ETS, but the European Community Shipowners' Associations (ECSA) argued the plan falls short on clean technology support

The proposal focuses too narrowly on wind propulsion and electrification, leaving out energy-efficiency projects and other technologies that could deliver emissions reductions across the existing fleet, it said in a statement on Friday.

ECSA nevertheless welcomed the proposal to earmark 110 million EU ETS allowances, worth about €10 billion, for the shipping sector, alongside support for sustainable fuels and simpler reporting requirements under the EU ETS and FuelEU Maritime regulations.

However, it said the allocation is only a first step, noting the shipping sector is expected to contribute around €90 billion to the EU ETS between 2030 and 2040. It argued that a much larger share of those revenues should be reinvested in the sector's energy transition.

It said the funding should cover the full range of clean technologies identified in the Commission's Industrial Accelerator Act, arguing that broader support is needed to accelerate the uptake of low- and zero-carbon fuels.

"Support for sustainable fuels is welcome and necessary to make them available at European and global level," Sotiris Raptis, Secretary General of ECSA, said.

"However, the proposal fails to deliver on the uptake of clean technologies, limiting support to wind and electricity alone."

ECSA said it will continue working with the European Parliament and the Council to strengthen the proposal as it moves through the legislative process.