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Insights Who, what & when: The FuelEU Maritime scope and timeline

Who, what & when: The FuelEU Maritime scope and timeline

EU ETS & FuelEU Maritime May. 15, 2024
Who, what & when: The FuelEU Maritime scope and timeline

After two years of negotiations, The European Parliament, the Council, and the European Commission reached an agreement on FuelEU Maritime regulation on 23 March 2023. The regulation was formally adopted on July 25, 2023, and takes effect in January 2025.

When entering into force in January 2025, the GHG intensity requirements, which form a pivotal part of the new rules, will apply to ships of 5,000 GT and above, regardless of their flag. The regulation will apply to all energy used on board in or between EU ports, as well as to 50% of the energy used on voyages where the departure or arrival port is outside of the EU.

The FuelEU Maritime regulation includes a series of targets aiming to reduce GHG intensity of energy used on board ships from 2% in 2025 to 80% in 2050 against a 2020 reference value, as illustrated in the figure.

This means that GHG intensity will have to be reduced by 2 % as of 2025, 6 % as of 2030, 14.5 % as of 2035, 31 % as of 2040, 62 % as of 2045 and 80 % as of 2050. The increasingly ambitious reduction targets leading up to 2050 is intended to drive the availability and uptake of low-carbon fuel technology.

The regulation will be reviewed in 2028, where policymakers will decide whether to extend emission-cutting requirements to smaller ships or to increase the share of the energy used by ships coming from non-EU countries.

 

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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.