Danish Shipping: The shipping industry’s CO₂ payments should be used to build up green fuel production in the EU
Danish shipping companies pay billions into the EU’s CO₂ Emissions Trading System (ETS). Danish Shipping therefore urges that these funds be used to establish and scale up the production of green fuels in Europe.
Right now, the global shipping industry is holding its breath and looking to London, where the IMO’s Net-Zero Framework will be put to a final vote on 17 October. Danish Shipping is giving its full backing to the agreement and is fighting hard for its adoption.
“The agreement at the IMO will be a gamechanger for the decarbonisation of international shipping once it is adopted. Then it will be full speed ahead – and Danish shipping companies are ready. But a key prerequisite for success in climate transition is that a lot more alternative fuels are produced than is the case currently. And that must also happen in Europe,” said Jacob K. Clasen, Deputy CEO of Danish Shipping.
It is only logical that the funds we ourselves contribute through quotas should also be used to create the production of the fuels we will sail on in the future
The EU has already introduced climate regulation of shipping through the EU ETS and FuelEU Maritime. In 2026, when ETS is fully phased in, Danish shipping companies are expected to contribute DKK 3.8 billion to the system. Danish Shipping proposes that ETS revenues should be earmarked as a support scheme for the green transition of shipping – including both production and offtake.
“Those funds must be used to accelerate the build-up of green fuel production in Europe. Our shipping companies are ready to switch, but we cannot afford to wait for other regions to outpace us. We are facing investments worth billions. It is only logical that the funds we ourselves contribute through quotas should also be used to create the production of the fuels we will sail on in the future,” said Jacob K. Clasen in an interview with the shipping media outlet Søfart.
It is also crucial to ensure proper alignment between EU climate regulation and a forthcoming global IMO regime.
“The EU must adjust its rules to a global agreement. It must not result in double regulation and double payment. Ideally, we should have one system for regulating shipping’s CO₂ emissions,” Jacob K. Clasen tells Søfart.
Read the full interview in Søfart here (in Danish)
Read Danish Shipping’s 10 recommendations for ramping up green fuel production