Getting to Zero Coalition seeks CfD addition to EU ETS

Getting to Zero Coalition seeks CfD addition to EU ETS

London, 10 May (Argus) — The Getting to Zero Coalition has proposed the inclusion of an additional support system under the EU's emissions trading scheme (EU ETS), that would see a portion of EU ETS revenues reinvested into alternative marine fuel projects, to narrow the price gap between conventional and alternative bunker fuel options.

The alliance, which is spearheaded by the World Economic Forum and the Global Maritime Forum, has a membership of over 150 companies in the maritime, energy, infrastructure and finance sectors, with the aim of commercialising zero-emission vessels operating on deep sea trade routes by 2030, supported by infrastructure for zero carbon energy sources.

According to the group, a key barrier to achieving low and zero carbon targets remains, namely that the price gulf between alternative and conventional fuels significantly mutes the competitiveness of the alternative options. European shipping's inclusion in the EU ETS will help but will be insufficient to bridge this gap, according to the Global Maritime Forum. The shipping industry will be included in the ETS from 2023, with a proposed phase-in period with 20pc of verified emissions reported for 2023, rising to 100pc by 2026.

The EU ETS is part of the EU's wider 'Fit for