Shipping group Danish Shipping is urging the EU to earmark revenues from its EU ETS for green marine fuel production, warning that the maritime industry’s transition depends on significantly expanding supply.

The call comes as the global industry looks ahead to a decisive IMO’s vote on the Net-Zero Framework in London on October 17, Danish Shipping said in an email statement on Tuesday.

Danish Shipping has declared its full backing for the plan, calling it a gamechanger for international decarbonisation.

“But a key prerequisite for success in climate transition is that a lot more alternative fuels are produced than is the case currently, Jacob K. Clasen, Deputy CEO of Danish Shipping, said.

“And that must also happen in Europe,”

The group says Danish shipping firms are expected to contribute DKK 3.8 billion ($523 million) when the EU ETS is fully phased in 2026.

“Those funds must be used to accelerate the build-up of green fuel production in Europe, Clasen noted.

“Our shipping companies are ready to switch, but we cannot afford to wait for other regions to outpace us. We are facing investments worth billions.”

Clasen also stressed the importance of avoiding regulatory overlap between European measures and a possible future global system under the IMO.

“It must not result in double regulation and double payment.

“Ideally, we should have one system for regulating shipping’s CO₂ emissions.”