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STIP builds momentum for clean fuel uptake but immediate follow-up is needed

The Commission published this morning the Sustainable Transport Investment Plan putting forward an action plan for investments in clean fuels.

European Shipowners welcome the Sustainable Transport Investment Plan (STIP) as a good first step that identifies many gaps and shortcomings in the existing European policy and finance framework.

STIP clearly recognises the need for more investments in clean fuels for shipping and identifies possible next steps and concrete action points. It prioritises the production of clean fuels in Europe as a matter of urgency for the transition to net zero and for reducing energy dependencies.

“We’ve got ambitious climate targets but not the clean fuels we need for the energy transition. STIP is putting investments in clean fuels at the centre of the competitiveness agenda. These investments are necessary for retaining industrial capacity, for enhancing competitiveness, for reducing energy dependencies and for getting to net zero” said Sotiris Raptis, Secretary General of European Shipowners|ECSA.

European Shipowners welcome STIP’s suggestion to use national ETS revenues to support the uptake of clean fuels for shipping. The EUR 9 billion generated from the contribution of shipping to the EU ETS should be used to bridge the immense price gap with clean fuels that are on average four times more expensive than conventional fuels.

STIP correctly points out that clear requirements are missing for European suppliers to make clean fuels available in the market for shipping. As a first step towards the introduction of a binding mandate on fuel suppliers, European Shipowners welcome the commitment to further incentivise the uptake of clean fuels to meet the targets of the Renewable Energy Directive and the FuelEU Maritime.

“STIP takes a major first step towards the use of the national ETS revenues to make clean fuels for shipping available at a competitive price. National ETS revenues have contributed substantially to the scale-up of renewables in Europe. We need to see the same happening for shipping. The use of the ETS revenues should also be matched by a binding mandate on European suppliers to make clean fuels available for shipping” Raptis added.

European Shipowners firmly support reducing administrative burden, especially for SMEs which are the backbone of European shipping. Therefore, European Shipowners welcome the commitment of the Commission to assess the burdensome reporting requirements for shipping companies and simplify rules.

However, the EU should go a step further and send a clear message on the full alignment of EU climate legislation with the IMO international measures, when adopted.

“Ensuring an international level playing field is essential for the competitiveness of European shipping. We expect a clear message from the Commission that the EU will fully align its policy framework with international measures when adopted at IMO level” Sotiris Raptis concluded.

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