EU Carbon-Market Subsidy Plan Favors E-Fuels and BioLNG Over Other Green Bunker Fuels

· Shipping · European Union · Netherlands

The European Commission's July proposal to revise the EU Emissions Trading System would reserve up to 110 million allowances between 2028 and 2040 for a new Sustainable Maritime Fuels mechanism, according to Hellenic Shipping News. The support on offer is far from equal, with e-fuels and bioLNG favored over other options, the report said, meaning the carbon market could soon pay shipowners to switch fuels but on uneven terms. The plan lands as bio-bunker demand already looks fragile: Rotterdam's bio-bunker sales fell 38% from the second to the third quarter of 2026, with bio-VLSFO down 81,000 mt to 63,000 mt, bio-HSFO down 17,000 mt to 13,000 mt and bio-MGO down 2,000 mt to 41,000 mt, while bio-methanol rose.

Why it matters：By steering carbon-market revenue toward selected fuels, Brussels effectively picks winners in the marine fuel transition, shaping investment in bunkering infrastructure and fleet fuel choices for the 2030s.

Key points

  • The EU ETS revision proposes reserving up to 110 million allowances for 2028-2040.
  • E-fuels and bioLNG are favored over other fuel pathways under the plan.
  • Rotterdam bio-bunker sales fell 38% quarter on quarter, led by bio-VLSFO.

Sources (original reporting)

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