Publication
18 February 2025
Position Paper
A Clean Industrial Deal to drive shipping and aviation’s competitiveness and decarbonisation
The Clean Industrial Deal is set to pave the way for enhancing EU competitiveness in tandem with the green transition. Shipping and aviation pose a key opportunity to harness such co-benefits.
By driving the development of the truly green technologies needed to decarbonise these sectors at the speed and scale that the climate crisis requires, the EU can become a global leader in these industries.
But the alternative fuels on offer for these sectors have varying climate and economic benefits. The fuels that enjoy the most traction also promise slimmer emissions reductions, detrimental environmental impacts, and risk becoming sunk costs and stranded assets.
If policy is targeted at developing and deploying green hydrogen solutions that are currently under-supported it would:
Secure European competitiveness in the shipping and aviation sectors, and in the burgeoning green hydrogen and e-fuels industries.
Set the shipping and aviation industries on track to meet their decarbonisation targets mandated in ReFuelEU Aviation and FuelEU Maritime legislation.
Preserve EU nature in line with biodiversity targets.
To achieve these benefits, the SASHA Coalition recommends the Clean Industrial Deal:
Guarantees the future of ReFuelEU Aviation and FuelEU Maritime by strengthening e-fuel sub-mandates and made FuelEU Maritime targets legally binding.
Creates a market for zero emission flight (ZEF) by introducing a legally binding mandate.
Expands the scope of the EU emissions trading system (ETS) to include international (not just intra-bloc) aviation and non-CO2 emissions.
Ensures the Sustainable Transport Investment Plan (STIP) provides ambitious e-fuel support mechanisms, namely a contract for difference scheme to support production.
Clean and competitive can come hand in hand — an ambitious and pragmatic Clean Industrial Deal would enhance European competitiveness and decarbonise shipping and aviation in tandem.