This study analyzes the challenges and opportunities for the decarbonization of the European Union’s trawl fleet from 12 m length, considering regulatory frameworks, subsidies, tax exemptions, energy efficiency, emissions and safety. A model that categorizes trawlers in groups was developed to assign catches and days at sea and to analyze the possibility of internalizing external costs. Based on catches for 2023, the analysis indicates that the fleet cannot internalize excise duties on fuels and social costs at its current level of operation while, once efficiency is improved, the fleet would be able to take part of them. To test these, external costs of greenhouse gas emissions, atmospheric pollutants and the social cost of fatalities designed for the EU transport sector were incorporated. The fleet could internalize greenhouse gas emissions depending on the level of energy efficiency achieved and easily internalize the social costs of fatalities to lower them below acceptable values, but not the full cost of emission pollution so policy decisions need to be made. The cost to adapt the trawler fleet to improve efficiency shows that capacity enhancing subsidies would be needed, since net benefit margins are low. For the sampled fleet the additional gross tonnage required to use new fuels and the extra cost due to the price gap in zero or near zero fuels were also assessed, indicating very limited room for transition without prior efficiency improvements and capacity subsidies.
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