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Maritime Insights and Knowledge-hub Understanding ‘Fit for 55’

Understanding ‘Fit for 55’

Other insights Nov. 18, 2024
Understanding ‘Fit for 55’

Fit for 55 is an EU policy package aimed at providing a pathway for the EU to deliver on its Green Deal strategy. With a 55% greenhouse gas (GHG) reduction by 2030 as its target, Fit for 55 sets forth different measures to decarbonise various sectors such as energy, transport, industry, and agriculture.

The European Commission first presented Fit for 55 in 2021, cementing it into EU policy by 2023. As an integral component of EGD, Fit for 55 aims to cut net GHG emissions by a minimum of 55% by the end of this decade.

At the official adoption of Fit for 55, European Commissioner for Transport, Adina Valean, stated:

"Accelerating the uptake of sustainable alternative fuels and increased energy efficiency are both cornerstones for achieving our 2030 climate ambition. They will also effectively contribute to decreasing our reliance on fossil fuels imports and improving energy security in the EU."

“... alternative fuels and increased energy efficiency are both cornerstones for achieving our 2030 climate ambition. ”

— Adina VĂLEAN, European Commissioner for Transport

Fit for 55 implications for the shipping industry

The Fit for 55 holds some key implications for the shipping industry. Some has resulted in new legislations and some are still implications in the time of writing. At the time of writing, some key implications for the shipping industry under the Fit for 55 package include:

Fit for 55 package:

Expansion of Emissions Trading System (ETS)

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One of the key proposals that came into effect on January 1, 2024, includes the expansion of the EU Emissions Trading System to encompass maritime transport.

FuelEU Maritime

Infografic Fueleu

This initiative sets out to increase the use of sustainable alternative fuels in the maritime sector by establishing a maximum limit on the greenhouse gas content of energy used by ships calling at European ports. Read more in our article in the bottom of this article.

Regulatory Compliance and Reporting

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Shipping companies is faced with increased regulatory compliance and reporting requirements under the Fit for 55 initiatives. This includes monitoring, reporting, and verification (MRV) of emissions, as well as adapting to new rules on fuel use and energy efficiency. MRV reporting was already introduced in 2018 and is continuously updated.

Euets Infografic Fueleu DB Web Fiftyfifty Office 719X719px5

These are just some of the implications that signify a significant transition in the shipping sector, and which will require substantial investment, adaptation, and innovation by shipping companies and other maritime stakeholders. The Fit for 55 package aims not only to reduce emissions but also to drive the sector towards a more sustainable and resilient future.

Read more about The European Green Deal and Fit for 55 here.

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