What is the purpose and scope of the FuelEU Maritime regulation, and how is it expected to impact the shipping industry and global efforts to reduce greenhouse gas emissions from maritime transport?
The FuelEU Regulation is one of the measures falling under the EU Fit for 55 which affects the maritime industry. The EU Fit for 55 is a number of legislative packages aiming to reduce the net greenhouse emissions by at least 55% until 2030 (compared to 1990).
FuelEU Regulation Establishes limits on the yearly average GHG intensity
of the energy used on-board (CO2eq/MJ) and considers the life-cycle emissions of ships. It considers the well-to-wake(wtw) emissions encountering the production of the fuel, distribution/transport, and the operational emission. The well-to-wake emissions is a sum of the well-to-tank (wtt) and the tank-to-wake (ttw) emissions.
Ships above 5000GT that fall under the EU ETS regulation will need to comply also with the Fuel EU Maritime Regulation starting from 2025.
- Companies monitor during the year the amount and type of energy in regulated journeys / port calls (using bunker delivery notes and OPS bills).
- In case of compliance, companies are issued a valid certificate of compliance.
- To provide flexibility and address issues of fuel availability the same ship can bank/borrow compliance surplus.
- To reward early adopters and zero-emission ships, pooling of over-compliance is allowed among ships (private law agreements); no transfer of borrowed surplus.
- Enforcement is done by checking for the certificate of compliance
- For non-compliance the company is subject to dissuasive proportionate penalties
Note that in case of disagreement with the work of the verifiers, the companies may request a review.
FuelEU Maritime promotes fossil LNG ships for the firsts decades: fully fossil LNG ships with 2 stroke high pressure engines comply with the GHG target almost until 2040. Also, it promotes biofuels.
Thanks, do you know what the average cost will be for a company with 5 bulk carriers operating in EU?
I guess this would depend on how far above the GHGIE limit the final produced emissions would be