European Community Shipowners’ Associations (ECSA) and Airlines for Europe (A4E) are calling, in a joint letter, for priority to be given to the production and availability of affordable green fuels for shipping and aviation.
The launch of discussions on the implementation of the European Sustainable Transport Investment Plan (STIP) between Greek Commissioner Apostolos Tzitzikostas and the two organizations is imminent.
In this context, ECSA and A4E state that, according to the Draghi report, investments of around 100 billion euros are required annually for the energy transition of European shipping and aviation.
The Clean Industry Deal recognizes aviation and shipping as the most challenging sectors to decarbonize, calling for the description of short- and medium-term measures to support both sectors in their access to affordable clean fuels.
Therefore, ECSA and A4E are calling on the European Commission to prioritize investments in the production and distribution of clean, safe, and affordable fuels for shipping and aviation in order to achieve their energy transition.
Regarding the availability of clean fuels for maritime and air transport, A4E and ECSA have submitted their own recommendations for an ambitious and concrete STIP.
As mentioned, the International Maritime Organization (IMO) agreed in April on the IMO Net-Zero framework.
European shipowners welcome this highly significant development, as shipping requires a regulatory framework at the international level and full alignment of EU legislation with the IMO climate agreement.
The transition of international shipping to net zero is expected to generate global demand for clean fuels.
The IMO measure will therefore provide an opportunity for European energy producers to bring these fuels to the market, provided that the necessary investments are made.
The 41st ICAO Assembly also marked a historic milestone by adopting a long-term global ambition target (LTAG) for international aviation to achieve net zero carbon emissions by 2050, in line with the Paris Agreement.
Investments and revenues
Regarding investments from EU and national emissions trading schemes (ETS) revenues in the decarbonization of shipping and aviation, the two Agencies pointed out:
EU ETS revenues generate around 10 billion per year from shipping and should be reinvested in the energy transition of shipping and aviation, as both sectors pay under the EU ETS.
Several Member States, including France and Germany, have recently committed to earmarking revenues for the decarbonization of shipping and aviation, in particular for the production of clean fuels. Therefore, a requirement to direct national ETS revenues from shipping and aviation towards the green transition of these sectors should be introduced in the STIP.
