EU Parliament: 2% of shipping's fuels green by 2030, 80% less GHG by 2050

A European shipowner trade lobby and clean transport NGO Transport & Environment both came out in support of the EU Parliament targets, but said they still do not go far enough.

The European Community Shipowners’ Association (ECSA) called for mandates on fuel suppliers to bring sufficient quantities of renewable fuels to market and earmarking of revenues from the FuelEU Maritime scheme to help in bridging what is widely expected to be a sizeable price gap between fossil fuels and renewable fuels. 

“Ensuring access to affordable clean fuels is a major challenge for the decarbonisation of shipping. Clean fuels currently sit on the most expensive side of the spectrum and therefore action is needed to bridge the price gap. To meet the targets of the FuelEU [legislation], the earmarking of the ETS (emissions trading scheme) and FuelEU revenues back to the sector becomes even more essential. This, together with ensuring fuel suppliers are responsible for making clean fuels available, is critical to ensure shipping can deliver on its decarbonisation objectives," ECSA secretary general Sotiris Raptis said.

ECSA also noted the EU Parliament had taken "a more pragmatic approach" to mandating the use of onshore power by vessels by removing penalties against ships in ports where shore power infrastructure is not available for use. 

While the ECSA wants more support for the maritime industry, NGO Transport & Environment called for the EU to again raise the bar with a number of changes to the proposed legislative terms, including setting a required 6% sub-quota for e-fuels from 2030 and near-term incentives for first movers, wind and solar, and removal of a proposed exemption for companies with three vessels or less that make up 60% of shipping companies, according to T&E.

T&E also highlighted that the EU Parliament package of measures also came up short of the NGO’s desire to see GHG reduction targets set at 100% in 2050.

“This is the beginning of the end for fossil fuels in Europe’s shipping industry. The green shipping fuel mandate will kickstart the production of hydrogen-based fuels by providing investment security for fuel producers. But 2% will not be enough if we are to stick to [Paris Agreement limits of] 1.5°C [global temperature rise]. The EU must build on this and go bolder. There is a clear will to clean up the shipping industry. This is just the start,” T&E sustainable shipping officer Delphine Gozillon said.

The Maritime Hybrid, Electric & Hydrogen Fuel Cells Conference, Bergen will be held 25 October 2022. Details and tickets can be found here