CleanTechnicaTransport & Environment (T&E)
The ETS Investment Engine: Scaling Europe’s Strategic E-fuel Market for Shipping & Aviation
Making the ETS a strategic investment tool for aviation and shipping
The EU Emissions Trading System (ETS) review proposal published in July 2026 is intended to make the EU’s most vital climate policy mechanism fit for its 2040 climate targets. It also carries the ambition to turn the ETS into an‘’engine for innovation and investment”.
This policy brief looks at the investment dimension of the ETS proposal with respect to the aviation and maritime sectors. They are major contributors to the ETS revenue generation.
We argue, however, that the proposed framework is not fit for purpose to adequately support clean fuel investments in these hard-to-abate sectors.
The…
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