The EU's proposed review of its Emissions Trading Scheme (ETS) aims to introduce the Sustainable Maritime Alternative Propulsion (SMAP) mechanism, potentially allocating 110 Mn ETS allowances to shipping and directing EUR 15 Bn back into the sector, although doubts remain regarding shipowners' interest in alternative fuels amid declining orders for alternative-fuel vessels.
In H1 2026, alternative-fuel vessel orders fell to 137, marking an 11.6 per cent year-on-year decline, as confidence in ammonia and hydrogen as viable fuels diminished, while investments in conventional fuel oils increase, underlining a significant regression in the industry's transition to greener technologies even as initiatives around commercial nuclear shipping and green fuel advancements proceed.