Shipping companies can apply annually for free allowances (from a 110 million allowance reserve, 2028-2040) to cover 55-90% of the price differential between fossil marine fuel and sustainable maritime fuels, or 90% of the extra cost of zero-emission propulsion technology, with bonus percentage points for EU-sourced feedstock, EU-built propulsion technology, and island voyages.
Shipping companies using sustainable maritime fuels or zero-emission propulsion technologies are offered support, and this is not law yet.
Why it matters
This is a Commission proposal: it is not law yet, and it can change before it is.
- It is Art. 1(5), inserting Art. 3gaa of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: 2028-2040. as of 2026-08-14
- It names one industry by name: Shipping. as of 2026-08-14
- Compliance is checked by self-declaration, annual. as of 2026-08-14
The rule
use of sustainable maritime fuels or deployment/operation of zero-emission propulsion technology on voyages subject to the Art. 12(3) surrender obligation
Shipping companies can apply annually for free allowances (from a 110 million allowance reserve, 2028-2040) to cover 55-90% of the price differential between fossil marine fuel and sustainable maritime fuels, or 90% of the extra cost of zero-emission propulsion technology, with bonus percentage points for EU-sourced feedstock, EU-built propulsion technology, and island voyages.
Who is affected
Burden drivers
Source text
Notwithstanding Article 10(1), for the period from 1 January [2028/first year after the entry into force of this Directive] to 31 December 2040, a maximum of 110 million of the Union-wide quantity of allowances referred to in Article 9 shall be reserved for the use of sustainable maritime fuels or the deployment and operation of zero-emission propulsion technologies, including electric and wind-assisted propulsion systems, provided that those fuels and technologies are used in accordance with the rules laid down in this Article.
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