The European shipping industry is facing mounting pressure to decarbonise while remaining competitive on the global stage.

The transition to low- and zero-carbon fuels is no longer optional - it is essential to meeting the European Union’s ambitious climate targets under the Fit for 55 package including the EU Emissions Trading System (ETS) and the FuelEU Maritime as well as the international net-zero target by 2050 agreed at IMO level. ECSA has put forward a comprehensive strategy to ensure the maritime sector is equipped to rise to this challenge. 
The Draghi report on European competitiveness estimates that €40 billion in annual investments will be needed between 2031 and 2050 for the energy transition of shipping alone. Investing in the production of clean fuels is key to ensure they become available and affordable for shipowners. 
To achieve this, European shipowners are advocating for a production mandate under the upcoming EU Clean Industrial Deal, requiring fuel suppliers to produce at least 40% of the fuels needed to meet the Fu- elEU Maritime targets in Europe. The Clean Industrial Deal is a great opportunity to not only improve supply but also to strengthen the European industrial capacity and the competitiveness of European suppliers, at a time where the shipping industry is gearing towards its international decarbonisation targets. 
Another significant obstacle to the adoption of clean fuels is their cost, which can be up to four times higher than conventional alternatives. ECSA has called for the strategic allocation of revenues from the EU ETS to bridge the price gap between clean and conventional fuels. We argue that these funds should be directed to energy transition projects within the maritime sector, making cleaner fuels more accessible and affordable for shipowners. Both European and national ETS revenues must be used to decarbonise and support the international competitiveness of the European industry. Drawing 
inspiration from successful initiatives like the European Hydrogen Bank’s pilot auction, ECSA supports mechanisms such as ‘carbon con- tracts for difference’ and ‘auctions as a service’ to bridge the price gap and stimulate the production and uptake of these fuels. Infrastructure plays a vital role in enabling this transition. Clean fu- els like advanced biofuels and e-fuels require significant investment in storage, refuelling, and port facilities. ECSA has emphasised the need for energy hubs in major European ports to support the maritime supply chain’s shift to these new fuel types. At the same time, safety standards must be updated to accommodate the handling 
and use of these innovative fuels, ensuring a safe transition for the workforce onboard and onshore.
Collaboration between the shipping sector and fuel producers will be crucial for the success of the energy transition. The newly established Clean Maritime Fuels Platform, initiated by ECSA and involving all major fuel supplier associations in Brussels, aims to foster dialogue and tackle common challenges, from de-risking investments to expanding funding mechanisms for infrastructure development. This industry-led initiative reflects the sector’s commitment to achieving the EU’s ambitious climate objectives and underscores the importance of a unified approach. 
Time is of the essence. The maritime sector’s ability to meet its targets under the EU ETS and FuelEU Maritime depends on immediate action to scale up clean fuel production, bridge the price
gap with conventional fuels and ensure access in EU ports through infrastructure investments in energy hubs. This is not just a technical challenge. It is an opportunity for Europe to lead in clean fuel innovation, creating jobs and strengthening its position in the global maritime industry. With the right policies and investments, the Euro- pean shipping industry can transition while safeguarding its competitiveness on the global stage. 
* PRESIDENT, EUROPEAN COMMUNITY SHIPOWNERS’ ASSOCIATION (ECSA)