FuelEU Maritime Regulation
Decarbonising Marine Transport in the EU
The FuelEU Maritime Regulation is a European initiative aimed at decarbonizing the maritime sector. It focuses on reducing greenhouse gas (GHG) emissions from ships and promoting the use of sustainable alternative fuels through progressively stricter GHG intensity reduction targets for energy used on board ships, covering the full well-to-wake (WtW) lifecycle.
The FuelEU Maritime regulation aligns with other EU climate initiatives like the Emissions Trading System (EU-ETS) and the Renewable Energy Directive (RED), offering both mandatory and voluntary components to encourage sustainable maritime practices and technological innovation. As a strategic partner, we leverage our expertise in the FuelEU Maritime program and other emissions reduction strategies to deliver innovative compliance and carbon reduction solutions for our clients across the maritime sector. Contact our Environmental Commodities team for more information.
About the FuelEU Maritime Program
FuelEU Maritime is an EU regulatory initiative aimed at reducing greenhouse gas (GHG) emissions from the maritime sector as part of the broader European Green Deal and the EU’s climate targets for achieving climate neutrality by 2050.
The regulation sets progressively stricter GHG intensity reduction targets for ships over 5,000 gross tonnage, which are required to decrease their carbon intensity by at least 2% by 2025, 6% by 2030, 13% by 2035, 26% by 2040, 59% by 2045, and 75% by 2050 compared to a 2020 baseline. This encourages the use of sustainable alternative fuels such as biofuels, hydrogen, ammonia, and electricity, along with energy efficiency measures and technologies. Ships must monitor, report, and verify their emissions and energy consumption annually, with the compliance data verified by independent third parties and enforcement handled by EU bodies such as the European Maritime Safety Agency (EMSA) and the EU’s Directorate-General for Climate Action (DG CLIMA).
The FuelEU Regulation also mandates zero-emission requirements for ships at berth, requiring passenger ships and containerships to use on-shore power supply (OPS) or alternative zero-emission technologies in ports. It includes mechanisms for incentives, such as financial benefits or reduced port fees for exceeding targets, and penalties, including fines or port access restrictions for non-compliance. While primarily mandatory, it also supports voluntary participation, allowing smaller ships or operators to adopt higher standards and participate in pilot programs to foster innovation and sustainability in the maritime industry.
FuelEU and the EU ETS
FuelEU Maritime and the EU Emissions Trading System (EU-ETS) represent both regulatory requirements and opportunities. FuelEU Maritime mandates stricter GHG intensity reduction targets, pushing them to adopt cleaner fuels and technologies to comply.
The EU-ETS, on the other hand, provides a market mechanism for trading emission allowances, offering financial incentives for reducing emissions below the cap. Together, these initiatives drive investment in sustainable practices, encouraging innovation and cost-effective compliance, while also presenting potential penalties for non-compliance, making it crucial for operators to strategically manage their emissions and operational efficiency.
Program Scope
FuelEU Maritime applies to all ships of 5,000 gross tonnage and above, regardless of flag, that:
- Call at EU ports.
- Conduct voyages within the EU.
- Engage in voyages departing from or arriving in an EU port.
Compliance Requirements
Shipowners need to take several actions to comply with FuelEU Maritime:
Upgrade Fleet Technology: Implement zero-emission technologies such as on-shore power supply (OPS) for ships at berth and invest in alternative fuels like biofuels, hydrogen, or ammonia.
Monitor and Report Emissions: Develop and implement monitoring plans by August 31, 2024, to track and report GHG emissions and energy consumption accurately.
Enhance Energy Efficiency: Adopt energy-saving measures and technologies to reduce overall energy consumption on board.
Compliance with Regulations: Stay updated with GHG intensity reduction targets and ensure compliance to avoid penalties and leverage incentives.
Participate in the EU-ETS: Engage in the emissions trading market to buy or sell allowances and optimize compliance costs.
Targray Environmental Commodities can help shipowners take these steps to not only meet regulatory requirements but also potentially benefit from incentives and improved operational efficiency. Schedule a consultation.
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