EU Proposes Shipping Subsidies to Make BioLNG Competitive With Fuel Oil
Source Summary
The European Commission proposed in July a revision to the EU Emissions Trading System that would reserve up to 110 million allowances between 2028 and 2040 for a new Sustainable Maritime Alternative Propulsion (SMAP) mechanism. The mechanism is designed to cover part of the price gap between fossil marine fuels and sustainable alternatives like BioLNG. According to Rystad Energy's analysis, combined with the EU ETS, these subsidies could make BioLNG cheaper than traditional fuel oil.
Why it matters
The proposal could accelerate shipping industry adoption of sustainable fuels by making them economically competitive with conventional marine fuels, supporting the EU's decarbonization goals.
