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Insights Understand the key components of the FuelEU Maritime regulation

Understand the key components of the FuelEU Maritime regulation

EU ETS & FuelEU Maritime May. 08, 2024
Understand the key components of the FuelEU Maritime regulation

The FuelEU Maritime regulation is one of the key proposals in the EU’s ‘Fit For 55’ package. There are two key components of the regulation which seek to steer the sector towards decarbonisation.

GHG intensity: The regulation is designed to gradually decrease the greenhouse gas intensity of fuels used by the shipping sector over time. GHG emissions included in the scope are Carbon (CO2), Methane (CH4) and Nitrogen oxide (N20). Shipping companies will need to calculate GHG emissions per unit of energy used on board, based on their reported fuel consumption and the emissions factors of their respective fuels.

Onshore Power Supply (OPS): Starting in 2030 for all TEN-T ports and in 2035 for a broader range of ports, passenger ships and container vessels will be required to connect to shore power when at berth.

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Flexible mechanisms introduced for decarbonisation

Compliance with the FuelEU Maritime requirements is the shipowner’s responsibility, or any other entity that has assumed responsibility for the operation of the ship from the shipowner. Ships that do not comply with the requirements to GHG intensity or the use of OPS, will be subject to at financial penalty.

The regulation offers flexibility through banking, borrowing and pooling mechanisms. Ships can store compliance surplus for subsequent periods or borrow from the next period to offset deficits. Pooling allows verified ships under the same body to combine compliance balances for individual ship compliance.

The FuelEU Maritime legislation represents a significant step towards the decarbonisation of the maritime transport sector, aligning with the EU's broader climate goals. Access these resources to learn more about the FuelEU Maritime legislation: Regulation on the use of renewable and low-carbon fuels in maritime transport (FuelEU Maritime initiative).

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FAQ FuelEU Maritime

  • What is the FuelEU Maritime regulation?

    The FuelEU Maritime regulation aims to promote the decarbonisation of fuels on board ships by setting a limit of GHG intensity of energy used on board and by making the use of onshore power supply mandatory in ports.

  • What to be aware of regarding the FuelEU Maritime?

    Shipping companies need to submit a vessel-specific monitoring plan to verifiers by August 31, 2024. As of January 1, 2025, shipping companies must monitor and record the energy usage at port and during operation for each ship as per the approved plan. Beginning 2026, emission data must be submitted to verifiers by January 31 annually.

  • How is FuelEU Maritime related to EU ETS?

    The Fuel EU Maritime Regulation is a complementary regulation to the EU ETS. The EU ETS provides a regulatory framework for emissions reduction. In parallel, FuelEU Maritime supports the transition to low-carbon and renewable fuels, aligning with the goals of the EU ETS.

  • What are the GHG intensity regulations?

    The regulation sets a limit for the annual average of GHG intensity for fuels used on board ships over 5,000 GT, arriving at or departing from ports under the jurisdiction of EU/EEA Member States.

  • Which GHG’s are covered?

    GHG’s covered are carbon, methane, and nitrous oxide. The GHG intensity of the fuel is calculated on a life cycle basis based on emission factors determined for the Well-to-Tank and Tank-to-Wake parts, respectively.

  • How do you calculate GHG intensity when using biofuel?

    Biofuels that comply with the sustainability and GHG saving criteria in the Annex II of the FuelEU Maritime regulation or the Renewable Energy Directive, can use the default values provided therein or actual values certified under a scheme recognised by the EU. (Biofuels that do not comply with these criteria or are produced from food and feed crops are considered to have the same emission factors as the least favourable fossil fuel pathway for this type of fuel.)

  • What is the FuelEU Maritime penalty?

    If the GHG intensity used on board exceeds the GHG intensity limit for the year in question, a financial penalty will be imposed on the shipping company. Noncompliance with the onshore power supply requirements also imposes a remedial penalty.

  • What happens if penalties are not paid?

    If a ship does not comply with the FuelEU Maritime regulation for two or more consecutive reporting years, the competent authority of the EU/EEA Member State at the port of call can issue an expulsion order to the shipping company. The ship is barred from entering any port in any Member State until the company meets its obligations.

  • What is the "port of call" under the FuelEU Maritime?

    In FuelEU Maritime, "Port of call" means a port for cargo, passenger embarkation, or disembarkation. Excluded are stops for refuelling, supplies, crew relief, dry-dock, repairs, distress, ship-to-ship transfers outside ports, shelter from weather, and containerships in a neighbouring transhipment port.

  • What is Banking, Borrowing, and Pooling?

    FuelEU Maritime offers flexibility through banking, borrowing, and pooling. Ships can store compliance surplus for subsequent periods or borrow from the next period to offset deficits. Pooling allows verified ships under the same verifying body to combine compliance balances for individual ship compliance.