Danish shipping companies are among the largest contributors to the EU’s CO₂ Emissions Trading System (ETS), paying billions of Danish kroner into the scheme. With global decarbonisation goals intensifying and the shipping industry awaiting the final adoption of the International Maritime Organization’s (IMO) Net-Zero Framework, Danish Shipping is strongly advocating for ETS revenues to be directed toward scaling up green fuel production in Europe.
ETS Revenues as a Catalyst for Green Fuel Production
In 2026, when the ETS is fully phased in, Danish shipping companies are projected to contribute approximately DKK 3.8 billion. Danish Shipping argues that these funds should not disappear into general EU budgets but instead be earmarked for climate transition initiatives within the maritime sector.
Specifically, they emphasize that revenues must support the development, production, and offtake of alternative green fuels. This would ensure that the very quotas paid by shipping companies directly accelerate the industry’s ability to adopt cleaner energy sources and remain competitive.
The Need for Global Alignment in Climate Regulation
While the EU has taken significant steps with ETS and FuelEU Maritime, there is a pressing need to align European regulations with the forthcoming IMO regime. Danish Shipping stresses that a global agreement should prevent overlapping regulations that may result in double costs for shipping companies. The organization highlights the importance of a unified, streamlined system to regulate CO₂ emissions globally, ensuring fair competition and effective climate action.
As the IMO prepares to decide on its Net-Zero Framework, Danish Shipping has made its stance clear: the future of maritime decarbonisation depends on accessible and abundant green fuels. By directing ETS revenues toward green fuel production and ensuring global regulatory alignment, Europe can position itself at the forefront of the shipping industry’s climate transition. Danish shipping companies stand ready to lead—but they need the right framework and fuel supply to power the journey ahead.
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Source: Danish Shipping
