SMAP mechanism: EU ETS support for sustainable marine fuels explained

What the new SMAP mechanism does

The European Commission has proposed a new mechanism called SMAP, short for Sustainable Maritime Alternative Propulsion. Its purpose is straightforward: narrow the cost gap that currently discourages shipowners from switching to renewable marine fuels.

In practice, the mechanism reserves up to 110 million allowances from the EU Emissions Trading System (ETS) to fund this support. These allowances are not distributed at random: they are directed to shipowners who actually use sustainable alternative fuels.

This approach addresses a recurring industry concern: sustainable fuels cost more to produce, which slows purchasing decisions even as regulatory obligations increase. SMAP is designed to complement existing mechanisms, not replace them.

What does this mean in practice for shipowners?

SMAP works on a retroactive basis: shipowners claim allowances based on the sustainable fuel volumes they used the previous year. The level of support depends on the fuel type and feedstock involved.

Support levels vary by fuel type

• 55% of the cost gap for advanced biofuels and biogas made from RED Annex IX Part A feedstocks
• 90% of the cost gap for RFNBOs (renewable fuels of non-biological origin)
• 80% of the cost gap for low-carbon hydrogen

One point worth flagging early: used cooking oil (UCO, Annex IX Part B) feedstocks would not be eligible for SMAP support. This does not make them irrelevant — they remain valid for FuelEU Maritime compliance, just without the additional financial lever that SMAP offers.

Feedstock choice now determines access to financial support as much as regulatory compliance.

How can Heeding support this transition?

In this shifting regulatory landscape, having a clear view of available offers becomes an operational advantage. Heeding is a marketplace and purchasing platform for sustainable fuels: it does not sell fuel under its own name but gives access to offers from multiple producers and distributors.

In practice, buyers can compare several suppliers, along with their pricing and availability, without having to search for and contact each one individually. This makes it possible to identify available volumes at the right moment and reduce dependence on a single supplier — particularly relevant as eligibility criteria for support keep evolving.

The platform also centralises the documentation and traceability information tied to each order — a key point when it comes to demonstrating a fuel's eligibility for a support scheme or a compliance obligation. The entire purchasing journey, from supplier search to document retrieval, is simplified as a result.

Conclusion and next steps

The SMAP mechanism is not yet in force: the approval process is expected to take 12 to 18 months, with entry into force envisaged for 1 January 2028 or the year following adoption of the revised directive. This timeline gives shipowners room to plan their purchasing strategy rather than react to it.

Anticipating means understanding now which feedstocks and fuels will qualify for support, and assessing fleet compatibility with the available options. It also means building a purchasing capability that does not rely on a single supplier, in a market where volumes and prices move quickly.