Support for the green transition in the EU’s outermost regions

Subject: Support for the green transition in the EU’s outermost regions

The FuelEU Maritime Regulation1 and the extension of the EU emissions trading system2 (ETS) to maritime transport are fundamental for the EU to achieve its climate goals. However, the EU’s outermost regions face unique challenges in this regard. Namely, they are structurally dependent on maritime transport for all types of goods, due to their geographical isolation and lack of alternatives.

In recognition of these challenges, both legislative acts have specific provisions for outermost regions: the ETS extension will not apply until 2030, and the FuelEU Maritime Regulation applies to only half of the energy used on voyages arriving at or departing from these regions. Despite this, there are concerns about whether these are sufficient to prevent increases in the cost of living in the outermost regions.

Taking this into consideration:

1. Does the Commission plan to assess whether these provisions are sufficient for preventing increased inequalities and a higher cost of living in outermost regions?

2. Is the Commission considering additional measures, such as increased funding, to assist these regions in the green transition?

3. In future reviews of these legislative acts, would the Commission consider implementing permanent derogations or other types of customised solutions for outermost regions, if there is evidence of significant negative impacts?

Submitted: 30.10.2024

1 Regulation (EU) 2023/1805 of the European Parliament and of the Council of 13 September 2023 on the use

of renewable and low-carbon fuels in maritime transport, OJ L 234, 22/09/2023, p. 48, ELI: http://data.europa.eu/eli/reg/2023/1805/oj.

2 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a

scheme for greenhouse gas emission allowance trading within the Community, OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj.

Answer given by Mr Hoekstra on behalf of the European Commission

(18 December 2024)

All sectors, including maritime transport, need to contribute to the EU climate neutrality objective by 2050. The EU Emissions Trading System (ETS) (1) and FuelEU Maritime (2) are key EU policies to achieve this objective.

The Commission fully acknowledges the specific situation and challenges faced by outermost regions, in particular their high dependence on air and sea connectivity.

This is why both the EU ETS and FuelEU Maritime contain derogations benefitting these regions. Furthermore, pursuant to the ETS reporting and review clause (3), the Commission will monitor and report biennially on the implementation of the ETS extension to maritime transport, including regarding impacts on outermost regions.

The monitoring will also concern, inter alia, possible transport cost increases, market distortions, and shipping services that constitute essential services of territorial continuity.

The first report will be published in the coming months. If appropriate, the Commission will propose measures addressing potential challenges.

The expected impact on costs due to the ETS extension to maritime transport and to FuelEU Maritime were carefully looked at in the impact assessments (4) that accompanied the legislative proposals.

1 1Regulation (EU) 2023/1805 of the European Parliament and of the Council of 13 September 2023 on the use of renewable and low-carbon fuels in maritime

transport, OJ L 234, 22/09/2023, p. 48, ELI: http://data.europa.eu/eli/reg/2023/1805/oj. 2 2Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community, OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj. 1 ∙ ⸱ Directive 2003/87/EC of the European Parliament and of the Council establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275 25.10.2003, p. 32 , ELI: http://data.europa.eu/eli/dir/2003/87/2024-03-01). 2 ∙ ⸱ Regulation (EU) 2023/1805 of the European Parliament and of the Council on the use of renewable and low-carbon fuels in maritime transport, and amending Directive 2009/16/EC (OJ L 234, 22.9.2023, p. 48-100, ELI: http://data.europa.eu/eli/reg/2023/1805/oj). 3 ∙ ⸱ See Article 3gg(3) of Directive EC/2003/87. 4 ∙ ⸱

IMPACT ASSESSMENT REPORT Accompanying the document DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757, SWD/2021/601 final.

COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the proposal for a regulation of the European Parliament and of the Council on the use of renewable and low-carbon fuels in maritime transport, SWD/2021/635 final.








| | )The analysis showed that the estimated impact on commodity prices relevant to the European trade was expected to be relatively small (less than one percent price increase by 2030), with very low effect on demand.

Outermost regions benefit from EU funding to support their green transition, e.g. through instruments, such as the European Regional Development Fund (ERDF) and the programme for environment LIFE. The ETS also generates revenues which may benefit maritime projects in outermost regions.