On Wednesday 4 March, the European Commission unveiled an industrial strategy for the European Union’s maritime industry, aimed at boosting European ship production capacity, improving the competitiveness and sustainability of the maritime sector and promoting synergies between the civil and military segments.
Presented at the same time as the ports strategy (see other news), this initiative builds on the already strong position of the European industry. It produces 97% of the world’s cruise ships and 67% of the world’s icebreakers, and is a leader in small specialist vessels.
Nevertheless, the EU industry is facing “enormous challenges” and is “losing ground to Asian competitors”, according to a European source on Tuesday 3 March.
The Commission wants to help the industry capitalise on the growth potential represented by segments such as specialised vessels (dredgers, towboats, etc.) and underwater equipment (drones, industrial cables, etc.). Emphasis will also be placed on less polluting means of propulsion, such as alternative fuels and vehicle propulsion, in order to accelerate the decarbonisation of the sector.
To promote the competitiveness and European sovereignty of the maritime sector, the Commission intends to bring together industry and public authorities within an EU Industrial Maritime Value Chain Alliance. This alliance will identify investment opportunities in key sectors and facilitate the development of specific ‘roadmaps’.
In its strategy, the EU institution also wants to promote the decarbonisation and digitalisation of the maritime sector. To achieve this, it is announcing a simplification of rules and administrative procedures, as well as active promotion of EU positions within international bodies such as the IMO.
A dialogue will also be set up with the Member States on ways of making the EU flag more attractive in a context of increased global competition, based on the framework for State aid to the maritime sector in force since 2004 (see EUROPE 8576/15).
European funding. Access to finance is a key factor in maintaining the competitiveness of the maritime sector.
In its strategy, the Commission lists the financial instruments already in use: Connecting Europe Facility (CEF), Innovation Fund, Horizon Europe Framework Programme. The revenue generated by the ‘ETS’ system for trading greenhouse gas emission quotas could also be used to decarbonise the maritime sector, through the use of clean fuels.
Currently under negotiation, the European Competitiveness Fund could, after 2027, support the sector to accelerate the integration of green and digital technologies and the production of dual-use equipment for civil and military applications.
On this last point, the Commission believes it is necessary to promote military mobility by putting in place a mechanism to support the construction in the EU of dual-use ferries that can be deployed on strategic routes. This mechanism will make it possible to mobilise financial resources and develop specific technical standards with the relevant European agencies (EDA, EMSA).
Reactions. “Reflecting on the recent geopolitical instability, the Strategy recognises the strategic role of shipping for Europe’s energy and supply chain security”, said Sotiris Raptis, Secretary General of the European Community Shipowners Association (ECSA), in a press release, pointing out that with “35% of the global fleet”, European maritime transport makes the EU “a leader in global supply chains”. He welcomed the fact that the Commission had “rejected any protectionist demands” by giving priority to investment.
Welcoming the Commission’s initiative, the European cruise industry (CLIA) said in a statement that “Europe must keep its shipyards competitive, expand research and innovation funding, make sure Sustainable Maritime Fuels are accessible, and maximise maritime ETS revenues for reinvestment into shipping decarbonisation projects”.
See the communication from the European Commission: https://aeur.eu/f/l0e (Original version in French by Mathieu Bion, with Solenn Paulic and Anne Damiani)