Log in
Search
FuelEU Maritime
The FuelEU Maritime is a new regulation part of the Fit for 55 Package, which aims to deliver on the targets agreed in the European Climate Law and help the EU reach its goal of 55% reduction of emissions by 2030. Among legislations focused on helping to cut emissions from transport, FuelEU Maritime seeks to steer the EU maritime sector towards decarbonisation via limiting the carbon intensity of the energy used on board ships, therefore indirectly supporting the uptake of sustainable maritime fuels.
The FuelEU Maritime establishes limits on the annual average GHG intensity of the energy used on board, from 2025 to 2050 (see table below). The reference value used is 91.16 gCO2eq/MJ. These requirements would apply to all the energy used on board a ship in or between EU ports, but to only 50% of the energy used by ships arriving or departing from EU ports on voyages to or from a third country – the geographical scope is the same as the ETS Maritime legislation. It concerns only commercial vessels above 5000 gross tonnages, regardless of flag.
| 2025 | 2030 | 2035 | 2040 | 2045 | 2050 | |
| FuelEU Maritime target | 2% | 6% | 14,5% | 31% | 62% | 80% |
The Regulation also establishes the obligation for containerships and passenger ships to use on-shore power supply for all electricity needs when moored at quayside (not anchorage) in TEN-T ports by 2030 and in 2035 for all other ports if equipped. This does not apply to ships using zero-emission technologies for their electrical power demand at berth.
After an agreement was found between the co-legislators, the Regulation entered into force in September 2023, and will apply from the 1st of January 2025, and by December 2027 and every 5 years thereafter, the Commission will have to report to the co-legislators on the application of the Regulation and assess on the potential need to revise its targets.
What’s in it for hydrogen?
The Regulation includes provisions incentivising the use of renewable fuels from non-biological origin (RFNBOs) by ships. First, until 2033 a multiplier of 2 can be used on RFNBOs to reward their use by early movers: this means that every ton of e-fuels used will have their GHGs savings counted twice towards the GHG intensity reduction target. Additionally, an RFNBO ‘sunrise clause’ was introduced in the text, providing that if in 2031 the share of RFNBOs in the yearly energy used on-board ships is less than 1%, a mandatory quota of 2% RFNBOs shall apply by 2034. This incentivises the use of e-fuels and green hydrogen to decarbonise shipping as it falls into the scope of RFNBOs and will lead to an uptake of demand for hydrogen-based maritime e-fuels, ammonia or methanol.
To ensure the application of these provisions, the Commission will monitor and publish annually from 31st August 2024 and at the latest 18 months after the end of each reporting period, the share of RFNBOs in the yearly energy used on-board by ships covered by this Regulation. However, if based on this monitoring, the Commission finds evidence of insufficient production capacity and availability to the maritime sector, uneven geographical distribution, or that the RFNBO price is too high, the sub quota will not apply. Criteria for such evidence to be found still need to be determined in secondary legislation.
Flexibility mechanisms for ships to comply with this Regulation are presented in the Regulation, with the possibility of banking and borrowing of compliance surpluses over the next period; and through the possibility of open pooling mechanisms to reward and incentivise overachievers and encourage rapid deployment of the most advanced options to cut GHG emissions on board ships.
The FuelEU Maritime Regulation introduces the possibility of a financial penalty in case of non-compliance with the GHG emissions savings requirement and with the RFNBO sub-target (if applicable). Shipowners are responsible for the payment of the penalties but can conclude contractual agreements with fuel suppliers foreseeing the liability of the latter to reimburse the company for the payment of these penalties. The allocation of revenues from penalties will go to Member States’ budgets which have to make sure that the revenues generated from penalties support rapid deployment and use of renewable and low-carbon fuels in the maritime sector, with a reporting due in 2030 and every 5 years thereafter on their use.
Links to the original document and additional information:
Regulation 2023/1805 on FuelEU Maritime
