Shipping and Aviation Groups Press EU to Channel ETS Revenues Into Sustainable Fuels

European shipping and aviation industries are jointly pushing back against what they describe as a critical funding gap: billions of euros collected through the EU Emissions Trading System are not being redirected toward the green fuels needed to decarbonise either sector. The European Community Shipowners Associations (ECSA) and Airlines for Europe (A4E) issued a joint statement calling on the European Commission to allocate a portion of ETS revenues toward boosting the production and uptake of sustainable fuels. According to reporting, the two sectors together contribute more than 11 billion euros annually to the ETS. Despite this, both ECSA and A4E argue that only a fraction of those funds are being reinvested into decarbonisation technologies or alternative fuel infrastructure that the sectors actually need. The groups note that sustainable fuels continue to carry a significant price premium over conventional fossil alternatives, making direct financial support essential if production volumes are ever to scale meaningfully. Both organisations also called for national-level ETS revenues to be deployed alongside existing EU funding mechanisms to amplify impact. European shipowners are leading global investments in sustainable fuel-powered vessels, with 44% of the global orderbook, but Europe fuel availability is not keeping pace. Asia leads with 74% of fuel production projects, while Europe accounts for just 10%. Less than 5% of European sustainable fuel production is currently intended for maritime use.