FuelEU Maritime
Levies on fuel combustion and shore power mandatory per 2030
FuelEU Maritime is one of the most stringent upcoming rules and regulations affecting your vessel. It is expected to come into effect as per January 1 2025 for all commercial vessels of 5.000 GT + regardless of flag, potentially above 400 GT. FuelEU will set strict fuel reduction targets, in combination with levies on fuel combustion. Additionally, the use of shore power in EU ports is mandatory from 2030 onwards. It should be noted that FuelEU will adhere to well-to-wake emissions, which could mean “the death of LNG” with extremely high levies for non-compliant vessels. In addition, fuels outside EU will fall under this legislation as well, which will impose restrictions to fuel (producers) outside EU and shipping industry as a whole.
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Frequently Asked Questions
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FuelEU Maritime is part of the Fit for 55 package directed at shipping. The goal of FuelEU is to reduce greenhouse gas (GHG) emissions of ships’ when travelling to, from or within the EU. FuelEU takes into account all greenhouse gas emissions (not only CO2) from the entire supply chain ('well-to-wake'), and aims to increase the use of Renewable and Low-carbon Fuels (RLF).
These fuels should represent 86-88% of the international maritime transportation fuel mix by 2050 to contribute to the EU’s targets. The production and distribution are addressed in the Renewable Energy Directive (RED) and the Alternative Fuels Infrastructure Directive (AFID) respectively.
Additionally, FuelEU Maritime aims to drive demand and mitigate competition between operators and ports during the fuel transition.
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All vessels of any flag above 5.000 GT* travelling to, from or at berth in ports in the EU**
Energy used at berth in an EU port
100% of energy used in intra-EU voyages
50% of energy used on extra-EU voyages
*Several organizations are lobbying to reduce the limit to 400 GT in order to ‘level the playing field’.
**The following vessels are exempt for now:
Naval vessels
Fishing vessels
Ships using non-mechanical propulsion
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The following vessels are exempt for now:
Naval vessels
Fishing vessels
Ships using non-mechanical propulsion
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The yearly greenhouse gas limit under FuelEU Maritime will be based on the average onboard greenhouse gas intensity of the fleet in 2020 – to be determined by the EU Commission.
Annual reduction targets will become more ambitious up to 2050 to reflect developments in low-carbon fuel technology and availability. Reduction targets will start at approximately 2% by 2025, and increase exponentially to 75% by 2050.
As a goal-oriented measure, FuelEU Maritime will be neutral in terms of fuel preference.
Shipping companies will need to calculate emissions per unit of energy used on board, based on their reported fuel consumption and the emissions factors of their respective fuels. It should be noted that FuelEU Maritime adopts a ‘well-to-wake’ approach to assessing a fuel’s emissions factor. For the average shipowner, this means the impact and costs will be higher compared to other regulations such as EU ETS.
The emission intensity of biofuels and biogas, among others, will be determined using the RED Directive, whereas fossil fuels should be assessed using FuelEU Maritime’s default emission factors.
Passenger ferries and containerships at berth in an EU port will be required to connect to an onshore power supply (OPS) as of January 1, 2030. Exemptions will be allowed in certain emergency situations, or for ships at berth for under two hours.
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Yes*. Passenger ferries and containerships at berth in an EU port will be required to connect to an onshore power supply (OPS) as of January 1, 2030.
Exemptions will be allowed in certain emergency situations, or for ships at berth for under two hours.
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The EU Commission will implement an electronic database to register the performance and compliance of each ship.
Shipping companies are responsible for monitoring the type and amount of energy used in operation and at berth. They must submit to verifiers a standardized emissions monitoring plan for each of their vessels by August 31, 2024. Their records must contain the WtW emissions factors for each type of fuel used at berth and at sea. At the end of April each year, shipping companies will need to submit their data, including that already reported for MRV regulation.
Verifiers will assess each monitoring plan and calculate the yearly average GHG intensity of a ship’s onboard energy, use of OPS, and its reflection of yearly targets. The verifier will issue a document of compliance, which must be kept onboard all ships calling at an EU port until the end of that reporting period.
FuelEU Maritime allows operators some flexibility: they can roll over or borrow excess compliance from one year to another, or pool compliance between multiple vessels. If a ship has a deficit of compliance units, its owner may obtain some in advance, though not for over 2% of the target, or over two consecutive reporting periods.
Ships that do not meet the required yearly limits will be subject to penalties. These will be calculated by the verifier according to the amount and cost of low-carbon fuel that should have been used to meet the requirements. The revenues this generates may fund the promotion of renewable and low-carbon fuels and help operators to meet their goals.
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January 1, 2025.
The European Council adopted the General Approach. It includes:
Beginning January 1, 2025, applying to all ships above a gross tonnage of 5,000 whose purpose is transporting passengers or cargo for commercial purposes.
Shore power requirements.
The use of renewable and low-carbon fuels, and the extent to which they count towards GHG intensity reduction targets.
Governance and enforcement.
Specification about the verifier role.
Check the link to the legislative train below for more information.
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In the EU Parliament, a number of areas are under discussion, including:
The need to clearly delineate between the authorities who verify fuel composition and the authorities in charge of levying fines.
How responsibility will be split between owner and charterer.
The role of LNG as a transitional fuel.
The risks of making shore power mandatory in all situations.
Problems of cost and competition.
The shipping industry has raised concerns about additional cost for maritime transportation. It remains to be seen if this price increase can be deferred to clients. Shipowners are also concerned that FuelEU Maritime is inconsistent with EU ETS. They have also cast doubt on the ambition level of the yearly targets.
In addition, FuelEU verifiers will need to spread over an extensive network to be able to check intra- and extra-EU voyages. They will also need high levels of knowledge and seniority and have their impartiality attested to by accreditors.
About Fuel EU
FuelEU Maritime is part of the Fit for 55 package directed at shipping. The goal of FuelEU is to reduce greenhouse gas (GHG) emissions of ships’ when travelling to, from or within the EU. FuelEU takes into account all greenhouse gas emissions (not only CO2) from the entire supply chain ('well-to-wake'), and aims to increase the use of Renewable and Low-carbon Fuels (RLF).
These fuels should represent 86-88% of the international maritime transportation fuel mix by 2050 to contribute to the EU’s targets. The production and distribution are addressed in the Renewable Energy Directive (RED) and the Alternative Fuels Infrastructure Directive (AFID) respectively. It should be noted that fuel standards apply to fuels bought outside the EU as well.
FuelEU applies to commercial vessels above 5.000 GT, regardless of flag, for all of the energy used on board a ship in or between EU ports, but to only 50% of the energy used by ships arriving at or departing from EU ports on voyages to third countries.
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