A new study from the European Community Shipowners' Associations estimates Cyprus will receive about 73 million euros per year from national carbon market revenue linked to shipping. The figure is based on EU ETS carbon allowances averaging 100 euros per tonne. Under a lower price of 85 euros, Cyprus would get roughly 62 million euros annually. The money does not flow directly from shipping companies to Cyprus. Instead, auction revenue from the EU ETS is distributed among member states using a formula based mostly on historical emissions from stationary industries. That means countries with large industrial bases like Germany, Poland, and Italy get the biggest shares, while smaller maritime nations like Cyprus, Malta, and Denmark receive less. The European Community Shipowners' Associations notes that only about 5 percent of national ETS revenue has gone to industrial decarbonization, with almost nothing directed to shipping. The group is pushing for the next ETS revision to require governments to reinvest a portion of the proceeds into sustainable marine fuels, cleaner vessel technologies, and port infrastructure.
