ECSA says the upcoming EU ETS review should require reinvestment in clean fuels and technologies. File Image / Pixabay

European shipowners have urged the EU to reinvest more shipping-related EU ETS revenues into maritime decarbonisation.

The shipping sector contributes up to €9 billion/year to EU and national budgets through the carbon market, according to a new study by the European Community Shipowners' Associations (ECSA).

The study estimates that shipping generates €9 billion a year under a carbon price of €100 per tonne of CO2, or €7.65 billion if prices average €85.

Around €7.7 billion of the higher-price total would flow to national governments, with the remainder going to EU-level funds.

ECSA said most member states do not earmark shipping-related ETS revenues for the sector's energy transition, despite sustainable marine fuels costing around four times more than conventional fuels.

The association estimates that shipping's transition in Europe requires about €40 billion in annual investment.

The study also highlights a widening gap between vessel orders and fuel supply.

European shipowners account for 44% of the global orderbook for vessels capable of using sustainable fuels, but Europe produces only 10% of global sustainable fuels, with less than 5% intended for maritime use.

Looking ahead, ECSA estimates shipping could contribute around €90 billion to the EU ETS between 2030 and 2040 and said the upcoming review of the EU ETS Directive should require member states to dedicate part of those revenues to sustainable fuel production and clean maritime technologies.

"The upcoming revision of the EU ETS, expected in July, is an opportunity to require Member States to use this money at national level to bridge the price gap and support sustainable fuel availability and clean tech projects," ECSA said.