Europe’s small ferries could make a big difference in the next EU ETS 

Smaller vessels, like ferries, may not always grab attention when talking about maritime emissions, but that doesn’t mean their impact should be overlooked. Unfortunately, the European Commission’s current revision of the EU Emissions Trading System (ETS) proposes to do exactly that.

While the decarbonisation debate has tended to be on cargo ships and big vessels, some promising maritime solutions are much closer to home. Everyday across Europe, small ferries and other vessels are operating on short, established routes, returning regularly to the same ports. For the SASHA Coalition, the next step is simple: it's time for EU policy to catch up and maximise this potential.  

The good news is that the classification of shipping vessels covered by the new proposal is already widening. From 2031 the European Commission is looking to extend the ETS to smaller general cargo ships, tankers and offshore vessels. However, ferries, passenger ships and other smaller vessel categories are currently still lie outside of this scope. So why leave them out? 

Small does not mean insignificant

Smaller vessels already represent around 16% of maritime emissions within this size segment’s projected trajectory, potentially rising to roughly one-third of EU maritime emissions by 2050. 

Ferries are also among the clearest opportunities for rapid electrification. Their short, predictable routes and regular access to port infrastructure make them particularly well suited to battery-electric propulsion. 

Recent analysis suggests that half of EU ferries could be electrified by 2035. SASHA Coalition member, AURELIA, is one of the frontrunners making this transition possible, but CEO/CTO and Founder, Raffaele Frontera, argues that the sector needs more support. 

“At AURELIA, we know firsthand what is already possible with zero-emission technologies, including for coastal and short-sea vessels. The solutions are here; what’s needed now is a strong policy signal that gives the clean shipping industry the confidence to invest. Including these vessels in the ETS would accelerate progress today, stimulate the development of the necessary infrastructure, and create the certainty needed for further investment and innovation in shipping’s decarbonisation.” 

Levelling the playing field

Building the confidence and certainty needed to boost investment in clean technologies is made even more challenging when the same rules don’t apply to all.  

As it stands, innovators like AURELIA have additional hurdles to overcome when advancing the shipping industry’s transition to zero-emission technologies. 

 Under the current ETS proposal, and with the existing tax exemptions on maritime fuels on top of that, the conditions that artificially make fossil fuels the most cost-effective option for operators are upheld. By opting to leave ferries and other smaller passenger vessels outside the ETS, the EU would be failing to use this opportunity to help close this price disparity and enable alternative fuels to become a much more competitive and viable option to invest in.  

In fact, levelling the playing field for investment in clean technologies can only be seen as a win-win, not only by boosting confidence in clean technology but also by putting a price on more emissions and generating more revenues. These revenues can then support the wider transition – from charging infrastructure and innovation to the deployment of zero-emission technologies. 

The bottom line is that expanding the EU’s revised ETS to include ferries and other smaller vessels is a necessary step towards creating the conditions for zero-emission shipping to thrive. As negotiations on the ETS proposal continue, the SASHA Coalition calls on European co-legislators to address this gap in coverage and make sure that the final revision doesn’t overlook the potential impact of small vessels. 

This is a big opportunity to make the EU ETS a real driver of clean shipping in Europe, and SASHA Coalition members are ready to help lead the way.