FuelEU - what are next steps into decarbonization?

The changes in our system today are unprecedented since the Industrial Revolution, a time marked by the global shift from hand production to machine application. The Industrial Revolution brought significant advancements to society, including rapid economic growth, increased production and efficiency, improvements in transportation systems, and eventual enhancements in working and living conditions. However, these advancements came at a cost: the widespread use of fossil fuels, which has been identified as a major driver of climate change.

In our current era, our civilization stands on the brink of an urgent need to halt and ultimately reverse the relentless degradation of our environment. Time is of the essence in this critical endeavor, and while it may be in short supply, we are not lacking in viable options to combat the detrimental effects of industrial activities on our planet. Among better waste management strategies, advancement in technology, application of renewables, smarter use of land, initiatives aimed at mitigating GHG emission hold tremendous significance. By reducing harmful gas emissions, we can tackle the root causes of climate change and its environmental impacts.

The FuelEU Maritime regulation, effective from January 1, 2025, is aimed at facilitating the decarbonization of the maritime sector within the European Union (EU). It intends to boost the utilization of renewable and low-carbon fuels in international maritime transport.

Agreement on the FuelEU Maritime regulation has been reached among the European Parliament (EP), the Council of the European Union, and the European Commission (EC), with formal adoption expected later in 2023.

The regulation sets greenhouse gas (GHG) emission intensity criteria for energy consumption aboard ships operating in the EU from 2025. Additionally, it mandates the use of shore power for container and cruise ships at designated EU ports from 2030.

From 2025, ships engaged in trade within the EU or the European Economic Area (EEA) must ensure that the yearly average GHG intensity of onboard energy consumption falls below a specified threshold. GHG emissions are assessed from a well-to-wake standpoint, encompassing emissions associated with fuel extraction, cultivation, production, and transportation, in addition to emissions from onboard energy utilization. The regulation also includes provisions for ships employing wind-assisted propulsion.

The GHG intensity requirement applies to 100% of energy consumption during voyages and port calls within the EU or EEA, and 50% of energy consumption during voyages into or out of these areas. Container ships making stops at transshipment ports beyond the EU or EEA, but within 300 nautical miles of an EU or EEA port, must include 50% of the energy required for the voyage to that port, to prevent circumvention.

Ships with an ice-class notation may seek an exemption from additional energy consumption related to navigating in ice conditions, starting from 2030.

Container ships and passenger vessels are obligated to connect to shore power when berthed for over two hours at a Trans-European Transport Network (TEN-T) port starting from 2030. However, exemptions from using On-shore Power Supply are possible in certain scenarios, such as short docking periods, unavailability of suitable shore energy resources, utilization of alternative zero-emissions technology, or unscheduled port visits due to emergencies.

A FuelEU database will be established by the European Commission to maintain records of various aspects related to regulatory compliance, accessible to relevant stakeholders including compliance responsible entities, verifiers, National Administrators (NABs), Competent Authorities, and the European Maritime Safety Agency (EMSA).

The FuelEU Maritime Regulation serves as a complementary measure to the EU Emissions Trading System (ETS), which has been in force since 1st January 2024. The EU ETS will operate in parallel with FuelEU Maritime.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of any company. Any content provided herein is for informational purposes only and should not be construed as professional advice. Readers are encouraged to consult appropriate professionals for guidance tailored to their individual circumstances.