Independent journal on economy and transport policy
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SHIPPING
Maritime ETS, SMAP under the lens of those who produce the fuels of the future
A joint letter from producers, utilities, shipowners and NGOs calls for quotas to be reserved for e-fuels and for advance booking to be introduced
Bruxelles
October 12, 2026
In a joint letter presented today, Transport &
Environment (&E) and 15 other active organisations and companies
mainly in the field of energy transition, they denounce that
the SMAP (Sustainable Maritime Alternative Propulsion) mechanism,
which was introduced by the European Commission in
Emissions Trading System Review Package
EU ETS that it presented in July
(
of 17
July 2026), risks rewarding solutions that are already
available instead of unlocking fuel investments
concise. The 16 signatories admit, however, that the SMAP is
the most concrete measure envisaged for maritime transport,
reserving up to 110 million in allowances between 2028 (or the first
year after entry into force) and 2040 that are necessary
to cover the price differential between marine fuels
and part of the costs of sustainable and fossil fuel technologies,
zero-emission propulsion. The beneficiary is the company
of navigation, which can request each year the assignment in
based on fuel used or emission reductions for the year
previous.
Specifying that the support provided by the SMAP is
estimated at €15 billion between 2028 and 2040, the signatories
underline that a mechanism of this magnitude can push
shipowners towards e-fuels, which in this period will have to
Scale to meet decarbonisation targets
long-term. Remembering that Sustainable Transport Investment
Plan (STIP) is based on estimates that in
less than ten years could take 4.6 million tons of
e-fuels to achieve the objectives of the European FuelEU regulation
Maritime, the signatories acknowledge that the proposal goes precisely into
this direction by providing for a coverage of the differential of
Higher price for e-fuels than other fuels
alternatives. The 16 signatories, however, believe that, although they are
A welcome step, but it is enough. The problem - they explain - is
The nature of the investments: e-fuel plants require
a lot of capital, and producers can only get ahead if they have
long-term purchase agreements signed with customers
(offtake). According to the signatories of the letter, the current proposal
does not offer sufficient support to this process. It follows -
argue - that SMAP should reward above all the use of
e-fuels in the long term, and not short-term technological options
that could already be incentivized by the
existing legislation.
In order to respond to this problem, a few days
the start of the debate on the revision of the ETS in Parliament and
Council, the signatories ask for two changes to be made
in the context of the negotiations, starting with the reservation of a quota
allowances for e-fuels, thus ensuring
that SMAP will help long-term options, including some
produced in Europe, and not just short-term solutions
already on the market. The second proposed amendment is
the introduction of an advance booking mechanism
(book-in-advance) for e-fuels. Without price support
guaranteed - the signatories observe - it is unlikely that the
owners sign long-term contracts with manufacturers. The
mechanism would make projects more eligible for funding that in the
The vast majority of cases are in the pre-decision phase
final investment. The letter recalls that a
A similar approach is already provided for in the proposal on allowances
for sustainable aviation fuels (SAF Allowance).
The signatories, therefore, do not question the logic of the
SMAP, but ask for a course correction: if the quota reserved for the
and advance booking will enter the text - they claim - the
mechanism would reward e-fuels more than others
fuels.
The letter, in addition to Transport & Environment, is
underwritten by Copenhagen Infrastructure Partners, Hy24, Getaer
Zero Fuels, Reolum, European Energy, Elyse Energy, Moeve, Iberdrola,
MGH Energy, Avalon Renovables, Green Transition Denmark, NABU and
zero.
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