The Sustainable Maritime Fuels Mechanism (SMAP) under the European Union's Emissions Trading System (ETS) aims to support the maritime industry's transition to clean fuels and propulsion technologies. The initiative is designed to bolster Europe's industrial leadership in the sector.
Projections indicate that the mechanism could provide approximately €15 billion in support between 2028 and 2040. This funding is intended to encourage shipping companies to adopt green e-fuels, which are essential for meeting long-term decarbonization goals.
The European Commission’s Sustainable Transport Investment Plan (STIP) estimates that the industry will require 4.6 million tonnes of e-fuels within the next decade to comply with FuelEU targets. Experts suggest that current SMAP proposals may need adjustments to effectively drive long-term investment.
Transport & Environment (T&E) argues that the capital-intensive nature of e-fuel production necessitates long-term offtake agreements. The organization recommends prioritizing SMAP support for e-fuel usage over short-term technological solutions already covered by existing legislation.
